Estate planning for you

Is now really the most convenient time to do an Estate Plan? For many people it seems to I, yes. Let’s talk about why:

1. First Meeting:

Typically, it may take a bit to get together for our first meeting, since clients are often couples who have to compare their schedules and find time to come in to meet.

Right now, since we’re not meeting in person, we can do our first consult by telephone. If you are slightly more daring, we can always use Zoom, Facetime or other conferencing tools. But, that’s only if you want something other than telephone.

2. I Draft Your Estate Plan:

I will do your drafting, and maybe follow up with you for a few details. Whether we are in a social-distancing environment or not, this means I may email, call or text you with a question. AND RIGHT NOW, aren’t you spending more time with your family? So, where normally you may need a day or so to find a minute to talk and get back to me, these days, you may be right there with your family. It could not be more convenient, since you are seeing your family more hours per day.

3. You Sign Your Estate Plan:

Again, in the routine environment, we might have to coordinate your schedules so that you can get in to the firm office at the same time for a few minutes to sign documents. BUT FOR NOW WE CAN REMOTELY NOTARIZE AND WITNESS. This means we can get on Facetime or Zoom or other audio-video conferencing, and you can sign from home. Yes, you sign we witness the process via audio-video, and then we can sign later that we witnessed, and we can notarize your documents.

Is now really the most convenient time to do an Estate Plan? For a lot of people, I believe, yes it is.

I can’t wait to help you out. Click on the link for information to call or set-up a telephone consult — and the consult is on the house.

A Trust is practically magic; it can: avoid probate; protect you during incapacity; protect assets for beneficiaries; care for minor family members; leave family legacy.

First, a Trust does not require probate.

A Trust is a private, estate planning contract. As a result, you and your Trustee will be able to administer assets without court supervision.

In addition, your Trust can provide for you and your care if you should lose the ability to care for yourself.

In the event you become less able to care for yourself, your Trustee and trust assets can be there to care for you. Your Trust can provide for you for the rest of your life.

Also, Trust distributions can be protected from creditors of your beneficiaries.

With a spendthrift provision, distributions to your beneficiaries can be protected. Your family, with that provision, cannot be garnished or lose trust assets to forcible seizure by creditors.

Again, you can set up a portion of your Trust to care for minor children.

So, your Trust can provide for them under conditions until they reach an age where they can handle assets themselves. Within your Trust, I often write a children’s trust for the benefit of anyone who may not be yet of the age of majority, or sometimes a little older. So, that is up to you.

Finally, your Trust can provide for a family legacy by providing for education.

This means, your Trust can make a down-payment on a first home, marriage gifts, and about anything you can imagine. You can plan and have your Trust make distributions long after you are gone. As you know, this is unlike a Will, which makes lump sum distributions right after completion of the probate process. As I said, a Trust is practically magic.

I hope this helps you.

Your Trust: consider some pivotal questions beyond simply to whom you ultimately leave your assets.

Ok, we begin with a somewhat common situation for folks who need a trust. A couple want their assets to be in trust but fully available while they are both alive. Then the survivor of the two of them should have access to some or all remaining assets for their life. And finally, their family should divide those assets remaining after the passing of the second of them.

Should the survivor have access to all assets after one of them has died?

After one of you passes away, would you like the surviving spouse to have access to spend all assets of the trust? Should they have access to both principal and income of the trust? You could agree that they may access just income. You could, perhaps, agree that they can get to income and principal ,but with a maximum distribution per year.

Moreover, would the two of you like the survivor of you to still retain the ability to amend or revoke the trust? This and the question of how much of the trust the survivor of you may spend both relate to an underlying consideration. Are the two of you agreeing to preserve something to ultimately pass to family or are you more concerned that the survivor of you will need access to trust assets? And a little spoiler alert is in order: how you approach this question may change over the years. (But again, at least while both of you are alive, you may amend your trust.

How and when should remaining assets go to family?

Think about how important it is for you that you divide assets equally (for instance, among your children). And, if you would rather your trustee not distribute lump sums to your beneficiaries, would you like assets to be distributed over time? For instance, you can distribute according to the age of each beneficiary? If your beneficiaries could be younger, would you like to provide for support of children while they are minors? Are you interested in setting aside a sum for post-secondary educational needs of children or grandchildren? There are many, many possibilities to allow that you leave the legacy you intend.

After the two of you have passed away, who should be Trustee(s)?

It is no surprise that the trust will not administer itself. After the death of the second of you (and maybe even during the life of the survivor of you), it is important to have named a successor trustee. This trustee is the person who will administer your trust, according to its provisions, after you are no longer acting as trustee.

So, these are just some more-detailed things to consider when starting your estate plan. Think first about whether you want to get things in order, and what you want your legacy to be.

This is, after all, YOUR Trust: consider some pivotal questions.

Will or Living Trust: which is better? A Will usually requires probate, but can gather assets upon death. A Trust does not require probate, but you should convey assets into Trust during life.

We will consider some basic ways a Will and Trust differ:

[see below at any time for Free Call Consult]

Will:

When I die, ___ goes to my ___.

So, assets I owned in my sole, individual name are subject to being probated, per terms of my Will.

I name my spouse as Executor, and maybe my oldest child as backup, to administer my estate.

Then, my Executor hires attorney for Probate (court-supervised administration; likely takes several months – sometimes 4 months just for creditor waiting period).

• Court accepts Will for probate.
• Court formally appoints Executor.
• Executor files inventory.
• Then, the Executor gives notice by publication and directly to heirs and creditors.
• Waiting period to give opportunity for creditors to file claims against estate.
• Court supervises more or less, depending upon type of probate.
• Executor accounts for and distributes assets with Court approval.
• Finally, the Estate is closed.

Trust:

• When I die, my spouse has continuing control and use of all assets.
• After spouse dies, then assets applied for care of kid(s) so long as minor(s).
• Assets are available for post-secondary education for kids(s).
• And, remaining assets go to kid(s) at age 22, 25 and 30.

Now, when I sign a living trust, I’ll title major assets into my Trust (a Trust does not gather assets into it automatically but you may have a backup “Pourover” Will to move forgotten assets into your Trust).

Trust administration usually means:

• Minimal notice goes to beneficiaries and accounting (per state statute).
• Trustee manages and distributes assets of trust.
• Court need not supervise.
• Proceedings are not filed or public.
• Trust provisions control how Trustee may act.
• Trustee owes duty to beneficiaries.

So, please note that this is, of course, general advice. You should get attorney advice for your specific situation.

Select a time for a short, free call consult:

The four critical documents for your Estate Plan include:

1. Trust
   • Provides mechanism and assets for you during life and during incapacity
   • Provides assets during life of surviving spouse
   • Distributes after life of both of you to your ultimate beneficiaries
   • Does all of this without need of probate
2. Durable Power of Attorney
   • You authorize someone to act on your behalf during your life for business and finance and healthcare
   • He/she can act not against your competent wishes, but very helpful:
     • Any time during life
     • During your absence
     • During your incapacity
   • In the event you cannot really help yourself this allows your family to avoid needing to go to court to get appointed as Guardian (for the person) and Conservator (for their assets)
3. Pourover Will
   • A backup Will that only leaves things to your genuine estate plan: your Trust
   • A just-in-case measure in the event you acquire a major asset that needs to be probated (after your death) into your Trust
4. Living Will
   • While not a mandate or enforceable contract,
   • It tells others, including your medical attorney-in-fact (named in your DPOA) that you do not wish to be maintained by life support machines if you do not really have a prognosis of recovery to your quality of life

These are Four Critical Documents for your Estate Plan. This does not cover all the bases, but these are the basics.

Take care of Your estate plan. Talk to your parents about Their estate plan.

Book a call now and I’ll answer your questions!

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