Estate Planning as a Career

Passing on wealth has been tricky business since the time of ancient Egypt and Greece. Unaware of the inner workings of wealth, most people have little knowledge of this vast and fascinating subject. Before determining the fate of heirs, here are some checkpoints to ensure property, cash (and even gold!) are handled properly and get into the hands of the right people.

Easy to get and create, the Living Trust offers a way to pass on wealth without the complications of going through Probate Court. With a couple of witnesses, the simplest forms, available at stationery stores or from the Internet, solve the two most common problems:

1. To whom the assets pass.

2. Identification of these assets.

Because most people have not been educated in the art of passing on wealth, though, they believe their Living Trust just goes into effect upon their passing. This is not, necessarily, true. The Trustors, those setting up the Trust, need to take the time to identify and transfer into the Trust what they plan to pass to their heirs. This avoids confusion, and even agony. Loved one can be well provided for, only IF the assets have been properly handled properly.

Neglect

If a person has a Living Trust, signed it, then put it on the shelf without doing anything else, he or she may have wasted time and money. Even a Living Trust needs attention and proper administration.

If a person has a Living Trust has the following been handled?

1. If a Beneficiary is dissatisfied and wants to sue the Trustee for more of the assets, does the Living Trust have in it a “No Contest Clause?” This means that should any Beneficiary sue, causing a dissipation of the Trust resources, the Beneficiary automatically loses his or her inheritance.

2. What happens if the original Trustors, those who set up the Trust, and then became the initial T (more…)