Estate Planning as a Career

Over the years in my work planning for affluent clients, I have often recommended the use of a corporate trustee. It is not common that a client’s initial decision regarding the trustee often is the eldest or most responsible or successful child or grandchild. There is often a notion in the client’s choice that there is some honor or distinction associated with naming a loved one as trustee, but upon a further understanding of the complexity of the issues and the work involved with acting as a proper trustee, the client recognizes the value and strategic logic of choosing a corporate trustee.

Some may ask, what is the typical threshold when a corporate trustee is right for a client? This obviously must be handled on a case by case basis, but as a general rule of thumb when a client’s net worth is above $1,000,000 (a common minimum asset requirement for corporate trustees), the benefits and cost of utilizing a corporate trustee far outweigh any potential negatives and the burdens placed on a loved-one forced to sit in the trustee position based on an improperly held notion or idea.

In every conversation with our clients we present the following six reasons why a corporate trustee should be considered when the total value of assets exceeds $1,000,000. The client is often shocked to see how quickly their assets can total a million dollars because in an estate planning sense you must include the value of your home, life insurance polices, IRA’s, and investments. Additionally, many financial professionals are aware that advanced planning strategies become necessary as assets approach the 2008 annual estate tax exclusion limits of $2,000,000.

Six Reasons to Consider the Use of a Corporate Trustee.

1. Complex Trust Law and Frequent Trust Litigation.

The primary and most fundamental reason we stress to (more…)

Inheritance law has been in place since 1969 and is governed by the Uniform Probate Code. UPC instructs what happens to the assets, debts, and financial affairs of a deceased person. Currently, only 18 states have adopted the Uniform Probate Code in its entirety, while the remaining 32 have adopted parts of it.

Although inheritance law varies from state to state, most adhere to a similar process. First, an estate executor is appointed either through a Will, Living Trust or the Probate Court. The person administrating the estate is responsible for settling the decedent’s debts, taxes, funeral expenses, and distribution of assets.

Unless the decedent has filed a Revocable Living Trust, the estate will be required to undergo the probate process. Individuals listed as beneficiaries must be notified and all of the decedent’s assets must be verified through the Probate Court. If there are outstanding debts associated with the estate, they must be settled prior to the disbursement of assets.

When an individual dies without leaving a Will, inheritance law requires the estate must pass through probate. The process is different for each state, but typically takes between 6 to 18 months to settle. When no Will has been filed, assets are usually transferred to the surviving spouse, children or other family members.

If you do not want your family to deal with additional burden after your death, it is crucial to develop an estate plan. Unless you are a multi-millionaire with a multitude of investments, organizing your assets is not that difficult to do. It simply takes a little time and effort.

First, draft a legally binding Last Will and Testament. Many attorneys offer this service for a nominal fee. Pre-printed forms are available at most office supply stores and only require you to fill in the blanks. In order for the document to b (more…)

Legacy and estate planning can be combined to guide and direct future generations while also helping you preserve your hard-earned assets and ensure that they go where you want them to go after you pass on.

By purposefully plotting your generational impact you can save your family and heirs considerable time, expense and potential grief by eliminating uncertainty about inheritance. In the legacy planning process you are given an opportunity to teach and offer hard-earned life experiences that helped shape your life and guide your destiny. The old saying, “If you give a person a fish you feed them for a day, but if you teach a person to fish they can eat for a lifetime,” is a common theme drawn upon daily by many successful clients who worry about the well being and preparedness of their future generations.

Seventy percent of Americans do not have a will. Unless you would like to donate your estate to Uncle Sam, it is time to join the thirty percent who do. Though writing a will may not be fun to think about, a little foresight now will save your heirs and loved ones enormous hassles down the road. In this series on legacy and estate planning you will learn to:

Understand the basics of wills, trusts, probate, legacy statements, charitable giving, and more.
Set up power of attorney, a living will, and long-term care arrangements
Minimize the impact of estate and inheritance taxes on your heirs

Warren Buffet has drawn much attention and praise for his comments regarding his own children’s inheritance, “”The perfect amount of money to leave children is enough money so that they would feel they could do anything, but not so much that they could do nothing.”

This attitude has been embraced by young professionals and baby boomers alike as well as the middle class. Only by planning your estate now can you be s (more…)