Part of creating a trust is determining who is best suited to handle different situations that could arise. During the trust design process, we will help you brainstorm who could make a good agent for your power of attorney, successor trustee, or member of your incapacity panel. The same person might not be the best fit for each role. Let’s take a look at each type of position and the responsibilities it encompasses: Successor Trustees Successor trustees manage your assets for you in ...
My Kids Shouldn’t Inherit, So Can’t I Just Leave the Money to My Parents?
I often speak to groups on the topic of estate planning. (If you want me to speak to your group, please contact us!) When I do, I always talk about how best to protect kids in the event the worst happens and the parents both die. You see, if children are too young or too immature to do something sensible with an inheritance, I usually recommend that the inheritance should be held in trust. Inevitably, someone will say, "I named my parents as the beneficiaries on all my accounts. They ...
Grandfather Screws Up – Leaves Legacy of Pain and Regret
I heard a story from another lawyer today, although it is sadly quite common. A grandfather, trying to do something for his grandkids as his dying wish, left those grandkids a bunch of money. His grandkids are still young - teens and preteens. He probably figured he would help them get a leg up by leaving them each about $1 million. So how is that a mistake? The problem is that he left those gifts to the kids directly, rather than using a trust. Why does that matter? Because when the ...
Who Wants to Be a Trustee? – Part 3 – Tasks
Trustees are obligated to meet their duties, described in Part 2 of this series. To do so, the trustee must complete a number of tasks throughout his or her service as trustee. Throughout, the trustee must consider whether he or she has the power to take a particular action. Well-drafted trusts include a lengthy section spelling out exactly what the trustee may do in administering the trust. Generally speaking, if an action benefits the beneficiaries, the trustee may do that act if ...
Who Wants to Be a Trustee? – Part 2 – Duties
In this second entry in our trustee series, we look at the duties a trustee must follow under state law. Here are the basics: Duty to Follow Trust Document Although perhaps it seems obvious, the trustee must follow the trust document. If there is any confusion, the trustee has to try to figure out what the grantor intended. So, a trustee must read (and re-read) the entire trust document to make sure she understands what the terms of the trust say. Then she has to follow those terms, even ...
Who Wants to Be a Trustee? – Part 1 – Overview
Estate planning attorneys use trusts to solve all sorts of problems for their clients. Any time there is a trust, there must be a trustee - the person who manages the assets in a trust. This post, along with the next several ones, will talk about what it means to be a trustee. Wait, what's a trust again? A trust is an agreement in which the grantor designates a trustee to manage assets for the beneficiary. One person might fill more than one of these roles. In a revocable living trust ...
Who Gets My Guns, and How?
Estate planning is complicated, but of all the assets covered in a plan, guns present the most unique challenge. In Idaho, approximately 57% of households own one or more firearms. Thus, as an Idaho estate planning attorney, we frequently encounter and address the challenges these items present. One complicating factor is the myriad of laws that apply, including federally and on the state and local level. Often, firearm owners don't consider these legal issues while they are alive. That ...
Who Does What in My Estate Plan — Or What is a Fiduciary?
We've had some questions lately about the roles people play in estate plans. These people (which lawyers call a "fiduciary"), include your personal representative, your trustee, your "agents," and the guardians for your minor children. Personal Representative Your Personal Representative (or "PR") is a person you designate in your Will. His or her job is simply to wrap up your financial affairs after you die. (The out-of-date name for this job was the "executor." We don't use that term ...
How Will the New Tax Proposal Impact Your Estate Planning?
About the New Tax Proposal Republicans in the U.S. House released their new tax proposal yesterday. The full text of the document is available on the web. It's 429 pages and proposes to simplify the tax code, repeal the alternate minimum tax, and reduce corporate taxes. Of course, this bill is a first draft and is in the early stages of the legislative process. It is fair to say that this version of the bill will not become law, though many of its proposals might. So, how will the new tax ...
Star Trek Actor Left No Will
Anton Yelchin is best known for playing Clumsy Smurf in The Smurfs (oh, yeah, and Pavel Chekov in the new Star Trek movies). At the age of 27, he died in an accident. News media are reporting that his parents have filed probate, claiming that he did not have a will. His estate (which is a legal word that just means “everything you own at the time of your death”) is already worth about $1.4 million. Because he died in an accident (his Jeep rolled down the driveway and killed him), that ...
