The revocable living trust is the estate planning device that is the best choice for a wide range of people. We are going to look at trust administration in this post, but first, we will explain why you may want to use a living trust instead of a simple will as the centerpiece of your plan.
The executor of a will is required to admit the document to probate, and the Surrogate’s Court provides supervision during the estate administration process. It serves a purpose, because final debts are paid, and the court examines the will to determine its validity.
This being stated, it is not necessarily positive for the rightful inheritors. They do not receive bequests until the estate has been probated by the court, and it will typically take about nine months at minimum.
Expenses accumulate during probate, and it is a public proceeding. Anyone that wants to pry into the final affairs of the decedent can access probate records, so there is a loss of privacy.
If you use a living trust instead of a will, the trustee that you name in the document would distribute the assets to the beneficiaries outside of probate, so the negatives would be avoided.
You can include spendthrift protections when you have a living trust. The trust would become irrevocable after your passing, and the principal would be protected from the beneficiaries’ creditors.
Irresponsible spending can be prevented because you can instruct the trustee to distribute limited assets every month, or you can dictate some other type of incremental arrangement.
It is not a pleasant prospect to contemplate, but over 30 percent of seniors contract Alzheimer’s disease, and this is not the only cause of cognitive impairment. With this in mind, your estate plan should include an incapacity planning component, and a living trust is ideal in this regard.
You would act as the trustee while you are alive and well, so you would maintain complete control. In the event of your incapacity, a disability trustee that you name in the trust declaration would take on the responsibility, so you can cover this base when you have a living trust.
Living Trust Administration
Any competent adult that is willing to assume the role can act as a living trust trustee. In many cases, the grantor will name a family member to act as the trustee, and this is perfectly acceptable.
This being stated, most people do not know anyone that has experience in this area. Fortunately, there is a simple solution.
When you work with our firm to develop your plan, and we help you create a living trust, we will have a full understanding of your wishes. After your passing, we will be perfectly positioned to provide assistance during the trust administration process.
You can give our contact information to the person that will be acting as the trustee, and they can give us a call when the time comes. We will answer all their questions, guide them through the process, and make sure the estate is administered in an efficient and effective manner.
Attend a Free Webinar!
Since you are on this website, you must be interested in learning more about estate planning and nursing home asset protection. You are definitely in the right place because we have some great opportunities coming up in the near future.
Our firm is conducting a series of webinars, and we have found that this is the ideal way to connect with our neighbors. There is no charge to attend, and you don’t have to go anywhere to join us, so this is a great way to invest some of your spare time.
The dates are posted on our webinar page, and when you identify the session you would like to attend, follow the instructions to register so we can reserve your spot.
Need Help Now?
If you have already learned enough to know that it is time to work with a Rochester, New York estate planning attorney to put a plan in place, our doors are open. You can send us a message to request a consultation appointment, and we can be reached by phone at 585-374-5210.
- Changing “Irrevocable” Trusts Through Decanting - September 22, 2021
- Donor Advised Funds: Too Good to Be True? - September 15, 2021
- Changing “Irrevocable” Trusts Through Judicial and Nonjudicial Modification - September 8, 2021