If you’re thinking about creating a trust, here’s a list of frequently asked questions that may help you decide if a trust is right for you.
What is the value of a trust?

This is a question without a very definitive answer, specifically because trusts are used for such a wide assortment of purposes – the value of which is determined by its creator. That said, however, most trusts are used to provide money to those in need, or to impose money management upon those who lack such skill themselves. Trusts are also used as a legal means by which one may bypass tax regulations.
Can you change a testamentary trust?

A testamentary trust is created in the language of a person’s last will and testament, and only becomes irrevocable (i.e., it can’t be changed) when the will’s owner dies. So, if the person that wrote the will is still alive and still of sound mind, the testamentary trust can be changed.

How much does it cost to have an attorney create a trust for me?

There is no universal set cost that an attorney must charge for creating a trust for someone. The cost will vary depending on the individual skill of the attorney, the complexity of the estate (if drafting a testamentary trust), the complexity of the legal document, as well as the amount of time spent on the project by the attorney. That being said, you should ask for a fee quote from the attorney prior to him or her beginning work.

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

You may not have known this, but Sherman Hemsley, the actor who played George Jefferson on “The Jeffersons,” the TV sitcom that aired from 1975 – 1985 and was nominated for eight Golden Globe awards, died in July from lung cancer and, because of intra-family disputes over his will, his body was kept in refrigerated storage for five months.

78-year-old Richard Thornton, the recently verified half-brother of Mr. Hemsley, had contested the validity of Hemsley’s will, claiming that he was not of sound mind when he signed the document. The will stated that Hemsley wanted all of his possessions to pass to his longtime friend and manager, Flora Enchinton Bernal, who was also named as the executor of the estate. But Judge Patricia B. Chew, who presided over the dispute, sided with Ms. Bernal in November and upheld the terms of the contested will.

Even though Thornton’s daughter claimed that her father wasn’t after Hemsley’s estate, estimated to be worth more than $50,000, Thornton does demonstrate how virtually unknown relatives can suddenly appear to contest the will of the recently deceased. While it is true that Thornton was not unknown, he does admit that the two did not call each other or exchange Christmas cards, but that Hemsley did publicly acknowledge him once. This sole acknowledgment occurred at a New Jersey concert in 2011.

Because Judge Chew upheld the terms of Hemsley’s will it seems that the actor will not be moving up to the Eastside, and will instead be buried at a military cemetery in Texas.

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

Some people choose to establish a testamentary trust as part of their estate plan. When you make this type of trust you get to determine its terms and direct how the trust will operate by writing your choices down in your last will and testament. Modifying the terms of your testamentary trust is very easy to do, though it will require you to meet the same standards that you met when you created your last will and testament.

Codicil

You can often change the terms of the testamentary trust by drafting what is known as a codicil. A codicil is an amendment or alteration that applies to your last will and testament. Just like writing a will, your codicil must meet the legal requirements your state imposes. This requires, for example, printing the document, signing it, and having it signed by two witnesses.

Will

In some situations you may want to make a drastic change to your testamentary trust that will also affect other parts of your will. In this situation, you may want to rewrite the will entirely. As long as you meet the same requirements that you did when you first created the will, you can change any terms you like. This holds true for the terms of the testamentary trust provisions you included in the will. As long as you meet state requirements, you can change those terms as you see fit.

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

As a general rule of thumb, you need to review your estate plan any time you experience a major life event or a change in circumstances. One of these key life events, moving to a new state, should prompt you to review at least your last will and testament, if not everything else. There are both practical and legal concerns you will need to consider if you created a will in a different state and have since moved to a new one.

Issue 1: Where are your representatives?

As part of creating a will you must sign the document and have it signed by two witnesses. If you made a self-proving will, there is no need for your witnesses to be located close to you when the time comes to present your will to the probate court. However, if your will is not self-proven and those witnesses are now far away from your current location, this can make it difficult for the probate court to call them in to testify about the validity of your signature. If your witnesses are unable to testify, the court will be unable to validate your will.

Issue 2: Did you make a handwritten will?

Even though handwritten wills, also called holographic wills, are relatively rare, some states do allow for them. Unfortunately, the state you move to may not be one of those states, and it may not have to accept your will as valid. In general, a printed will is valid no matter the state you created it in, but handwritten wills are only valid in a minority of states.

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

An executor is a person who manages the estate settlement process after someone has died. If you create an estate plan you get to choose who your executor is, even though the court will have to approve the nomination and officially recognize the executor, also called a personal representative or estate administrator. If you’re having difficulty selecting your executor, here are a couple of tips you may want to consider.

Time and Money

Executors are not free, and they will have to be compensated for their time. However, many states have limits on how much executors can charge an estate, and while it may be counterintuitive, hiring a professional to do the job may be less expensive than a family member. For example, a family member may need to use a probate attorney much more than a professional who is already experienced with the probate process.

Co-Executors

Some people think that having co-executors is a good option because it allows for more than one person to handle the estate and, if you are selecting family members, will convey to more than one person that you believe they are important. However, this is almost always an incredibly bad idea. It’s best to select a single person and have that person solely responsible for the estate settlement process. That person can hire the professionals he or she needs, but it should be left to a single executor, and not multiple ones. If you are concerned about hurting feelings, you can always name alternate executors in case the first cannot or will not serve.

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

Living Trusts

Anyone who creates a trust is known as a grantor, or alternately, a settlor. When grantors create living trusts they do so while they are still alive, as opposed to creating the trust through the terms of their Wills. Living trusts are very popular because the grantor maintains the right to change the terms of the trust, making it a revocable trust. Once that grantor dies those terms then become permanent and the trust becomes an irrevocable trust. Living trusts can be used both to hold assets for the grantor and distribute them according to specific terms, but are also useful for other purposes, such as protecting against incapacity, allowing for privacy, and allowing for quick access to property once transferred to the beneficiaries.

Testamentary Trusts

Any trust you create through your last Will and testament is known as a testamentary trust. These trusts become effective only after you die and are useful for a variety of purposes, such as ensuring that a beneficiary with special needs is properly cared for, preserving inheritances in blended family situations, or by providing for a spouse’s lifetime income. You can change the terms of a testamentary trust as long as you remain mentally capable, though these trusts are often not as useful as living trusts in some situations.

Specific Trusts

All trusts can be differentiated by whether they are living or testamentary trusts, but there are numerous specific types of trusts available to you. These trusts can be used to protect life insurance proceeds, ensure a minimal tax exposure, and perform other specific tasks depending on the needs of the person creating them.

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

It seems that there are a variety of myths surrounding the concept – and practice – of estate planning. In an effort to dispel these myths, and help people provide for their family once they’re gone, this article addresses some of the most common harmful estate planning myths.

1^st Myth: You have to be wealthy to make an estate plan

If you own any property, you’ll have an estate when you die. If you fail to make a plan about what to do with it when you die, then whatever property you have will pass by intestate succession. Intestate succession is the legislatively determined method for distributing the property of someone who dies without a Will, or who dies with an invalid Will. Intestate succession may result in your property going to someone you do not want, instead of someone you do.

2^nd Myth: I’m not old enough to worry about an estate plan

The disconcerting truth is that we never know when our time is up. It may be tomorrow or it may be 80 years from now. Faced with that kind of uncertainty, it’s nonsensical to delay implementing an estate plan because, just as with the first myth, if you own any property than you have an estate for which you can plan.

3^rd Myth: I wrote out my Will so I’ve taken care of that

Sorry, but most states do not accept handwritten Wills. This means that despite your carefully written Will, the court will deem your Will to be invalid, and your estate will be distributed by intestate succession.

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

If you’ve made the decision to get off the fence and get down to making a Will: congratulations. You’ve taken a very difficult step that many people never make. Now that you’ve decided, you may be overwhelmed by the choices you have and the process before you. Relax. It’s not difficult to create a Will if you tackle the process in pieces and just do one thing at a time. Here’s how to start.

Step 1: Make a list of your property

A Will won’t be the only estate planning tool you use, but it is a key part of your plan. To get started, you’ll first want to identify everything you have. Start by listing all your assets, such as your home, retirement accounts, life insurance policies, investments, as well as personal possessions. You don’t have to go into too much detail when you’re listing personal property, but make sure to list anything of a substantial value.

Step 2: List your debts

While you may want to pass on everything you have to your children, your creditors will have a say in that if you owe them money. Be sure to include any debts you currently owe, even if they are minor.

Step 3: Decide who you want to inherit your property, and why

Choosing who gets to inherit is often a rewarding experience, but you also want to decide why you are choosing to leave inheritances. Your estate planning attorney will be able to craft a plan that meets your specific desires, but there are some estate planning tools you may not be aware of. Because of this, it’s good to know the general goals you have for your inheritances so your attorney can tell you about options that can help you achieve them.

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

Estate plans require regular inspection and occasional maintenance to function properly. If you take the time every year to review your estate plan and find something you wish to change, that typically isn’t a problem. However, just as you took care to create your plan properly, you will also want to take care to ensure that the changes you wish to make our done properly and will not cause complications.

Reason 1: Changing Your Will Might Not Be Enough

A variety of life events can cause you to want to change the terms of your Will. However, it’s always important to remember that not all of your property will pass according to the terms of your Will. You will also have to review any beneficiary designations and trust terms if you are thinking about changing your inheritance plan.

Reason 2: Changing Your Trust May Require Agreement

If you have created a revocable living trust with your spouse, you still have the right to change the terms of the trust but will have to get your spouse to agree. Any trust provisions you want to change must be made in writing and both spouses will have to consent to the change.

Reason 3: Writing a Codicil Requires Careful Attention

You can make some changes to your Will by drafting an amendment known as a codicil. The codicil must meet the same requirements as the Will, meaning you must make it in writing, sign it, and have it signed by witnesses. Failing to do so can cause serious complications later because the court will ignore the codicil and only focus on the original Will.

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

1. If I make a will, do I have to register it with a will registry?

If you choose to write a last will and testament, you have no obligation to file that document with a will registry. Though there are some states which have will registries, or allow you to file information where your will can be found, that type of registration is never required. All you have to do to make a will is ensure that it complies with state requirements, and filing your will with state will registry is not one of those.

2. If I choose to register my will, will that make it legal?

Not by itself. Though registering your will can make it easier for your estate to locate the document after you die, it in no way affects the legality of that document. A court will have to determine if your will meets the legal requirements of your state. Whether you register the will or not has no impact on the court’s decision.

3. What should I do if my state does not have a will registry?

Because will registries are not a requirement, some people in states that do not have official will registries can be confused into thinking that they are somehow left out if they do not file. A will registry can be helpful if you want to ensure that your will can be easily found after you die, but it is not the only method to do this. As long as you keep your will in a secure place and notify others of where it is located, this can ensure that your family will have no difficulty finding the document when the time comes.

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