Every year the Chronicle of Philanthropy releases its list of the most generous donors. In 2011, the single largest donor was someone who has not been alive since 2006. Margaret Cargill, heiress to one of the nation’s largest private companies, gave two different charitable organizations $6 billion to split between them.

If you have never heard of Ms. Cargill before, it’s quite understandable. Though Cargill has been the nation’s largest privately held company for 11 of the past 13 years, it is not a widely known or a household name. The company produces various agricultural related products, such as food and fertilizer, and had a nearly $110 billion in revenue in 2011.

While Ms. Cargill died in 2006, she did not have any children and left her entire fortune to two different charitable foundations. However, she left it as shares of stock in her family’s company. It wasn’t until last year that the foundations could capitalize on the stock because Cargill sold public shares of one of the companies that it had an interest in. The sale amounted to about 2.8 billion, which will be split between the foundations. The remaining funds will not be able to be distributed to the foundation until 2013 when they can sell the remaining shares.

Among the other more well-known philanthropists of 2011, Microsoft’s co-founder Paul Allen, mayor of New York Michael Bloomberg, and financier George Soros, are also in the top 10.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

A revocable living trust is a legal document that allows you to avoid probate if properly drafted. Known legally as a “revocable inter vivos trust,” a living trust allows you to retain full control of your property while you are alive. After your death, the assets within your trust pass to your beneficiaries through your appointed trustee.

To be legally effective, a legal trust must have trust property or assets at the time of creation. In other words, you will need to place some assets within your trust in addition to having a written trust document. If you do not fund your trust with assets, your trust document is null and fails as a living trust.

What assets can you place in a revocable living trust? You can fund your living trust by placing your individually owned real estate, certificates of deposit, investment and bank accounts and stocks into trust. While you are still living, you can appoint yourself as the trustee. As such, you are both the grantor of the living trust and trustee of the living trust. By serving as the trustee, you retain legal control of your trust’s assets. You must appoint a successor trustee that will be the trust’s fiduciary or legal administrator after you die.

Living trusts are not wills. By operation of law, a will becomes effective only after you die. However, an inter vivos living trust is effective when you create and fund your trust. When you die, your successor trustee transfers the assets within your trust to named beneficiaries.

A living trust may be less costly to administer than a  will. Speaking with an attorney in our office can help you decide whether your financial estate plan should include a living trust document.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

When choosing a trustee, you need to make sure that you’re making the best choice possible so that your estate planning wishes are carried out.  This will give you confidence knowing that your trust’s affairs will be in order.  Take a look at the following information, to better understand who makes a great trustee.  If you have any questions, or if you need help selecting a trustee, contact an estate planning attorney.

You may have difficulty choosing the best trustee.  It can be hard knowing who will be best for this job.  These are some considerations that you will want to make when making your selection.

• A good trustee will be able to follow all of the instructions of the trust document so that your wishes are respected
• A good trustee won’t mix his or her money with that of the trust
• A good trustee is responsible, reliable, and trustworthy
• A good trustee will keep detailed and accurate records of all financial transactions
• A good trustee will keep in regular contact with all beneficiaries
• A good trustee won’t be afraid to seek legal counsel, if needed
• A good trustee will properly and prudently manage assets until they’re distributed
• A good trustee will always act in your best interest while you’re alive; and in your beneficiaries’ best interest after you have died
• A good trustee is willing and able to handle the many duties that go along with the job

Be sure to ask your potential trustee’s permission before naming him or her in your trust document; your trustee may not want to serve for a myriad of reasons.  In addition, name a back-up trustee in case your primary trustee is unable or unwilling to serve.

If you need help making your trustee selection, consult with a qualified estate planning attorney.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.

Many clients come to me to create a trust, and in doing so, they must name a trustee, or in the case of a living trust, a successor trustee, to manage the trust.  But what exactly are the duties of a trustee?

1.   Fiduciary duties:  As a trustee, you are acting in a fiduciary capacity, which means you have the legal obligation to act in the best interest of the beneficiary named in the trust documents.  Your actions must reflect this.

2.   Carry out the trust terms:   The trust is your road map and you must follow its directions, whether about when and how to distribute income and trust property or what reports you need to make to beneficiaries.  If you do not understand the terms of the trust, you should work with a trust attorney.

3.   Prudency:  You have the duty to ensure that any investments you make with trust property are prudent, and not risky or speculative.

4    Make Distributions:  You have the obligations to distribute the trust’s income and property according to the terms of the trust.  If the trust gives the trustee discretion on making distributions, you need to evaluate the beneficiary’s current needs, future needs, other sources of income, and your responsibilities to other beneficiaries before making a decision.

5.   Accounting duties:  One of your jobs as trustee is to keep track of all income to, distributions from, and expenditures by the trust. Generally, you must give an account of this information to the beneficiaries on an annual basis or according to the terms of the trust.  An annual tax return may be needed as well.  Depending on the size of the trust, you may be able to hire an accountant to handle these accounting duties.

A trustee is able to delegate to professionals. For example, you can hire financial advisors to make investments, accountants to handle taxes and bookkeeping for the trust, and trust attorneys to advise you on questions of interpretation.

The Law Office of Michael Robinson, P.C. is a member of the American Academy of Estate Planning Attorneys.