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Many people put off estate planning until some motivating factor demands that they put their affairs in order. Perhaps your estate plan is already in place, but over time you've found you can no longer recall the plan's basic provisions or you realize that revisions are long overdue.
The Revocable Living Trust
A living trust is the single most flexible estate planning tool in existence. It works for you during your own lifetime and offers long-range planning advantages. If you desire, your trust can outlive you, continuing to support loved ones. Whatever the goal, instructions are set forth in a written agreement, prepared by your attorney. You retain the right to alter or terminate the agreement at any time during your lifetime. Unlike a will, a living trust does not go on public record at a person's death. Assets held in the name of a trust are not subject to probate proceedings. Accordingly, family privacy is preserved and the expense and delays of court proceedings are avoided.
Initially, it may seem to make sense for you to serve as your own trustee. However, in the event of your physical or mental incapacity, resignation or death, a successor trustee must step in to assume your duties. Very careful consideration must be given to the selection of a successor trustee. The successor trustee is responsible for safeguarding the assets of your trust, paying proper debts, contesting improper claims, collecting sums owed the trust and filing estate and/or income tax returns. In less complicated times, people relied on close relatives or friends to settle their affairs. Today, naming an inexperienced trustee is not only shortsighted, but potentially costly as well. We provide specialized skills in all phases of trust administration.
Our Trustee Qualifications:
- Financial responsibility
- Unquestioned integrity and freedom from personal bias
- Patience and sensitivity
- Experience in managing all types of assets and holdings
- Informed investment judgment
- Familiarity with special estate settlement tax issues
- Longevity
The Pour-Over Will
Do you need a will if you already have a trust? Yes. The will becomes a backup to the trust, in the event the trust is not fully funded at the time of death. The will "pours" any probate assets into the trust for eventual distribution to the beneficiaries named in the trust after those assets go through probate proceedings.
Other Planning Documents
In addition to the revocable living trust and will, a complete estate plan includes a medical directive, durable power of attorney and certificate of trust existence. Due to the structure of the federal estate tax system, more sophisticated planning techniques may be necessary when planning for large estates. Additional planning may include a two-trust plan, irrevocable trusts or charitable trusts. Our seasoned trust officers are familiar with all estate-planning strategies and contingencies.
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