Trusts
Wills | Trusts | Powers of Attorney | Deeds
A trust can offer the same benefits as a will, but with the added benefit of eliminating probate. Trusts are excellent at providing ease of succession, privacy, and a lower cost of after-death administration. Trusts provide the highest level of control over assets: you may condition gifts upon the satisfaction of life events or accomplishments in order for a beneficiary to receive under the trust, or provide lifetime possession or control over property. Some specialty trusts include pet trusts, special needs trusts, and digital asset protection trusts.
Trust packages may include (subject to your needs):
-Telephonic or in-person consultation;
-Revocable Living Trust;
-Certificate of Trust;
-Pet Trust Provision;
-Guardianship Provision (for minor children);
-Applicable Deeds;
-State/County/Municipal document filing (gov’t filing fees not included);
-Trust Funding Instruction;
-Durable Medical Power of Attorney;
-Durable Financial Power of Attorney;
-Physician Certificate of Mental Incapacity;
-HIPAA Release;
-Living Will/Healthcare Directive;
-Pour-Over Will;
-Bill of Sale
This package may also include:
-Credit Shelter Trust;
-Special Needs Trust;
-Charitable Trust;
-Irrevocable Life Insurance Trust
However, having a trust alone, without proper funding, does not guarantee probate avoidance. It is imperative that all would-be probate assets are delivered to the trustee of the trust prior to the death of the grantor in order to avoid probate.
Trust Asset Titling - Naming Conventions:
-Trust assets should be titled in the name of the trustee or trustees, such as: “John Doe, as trustee of the Doe Family Trust dated October 17, 2017.” John Doe is the trustee, the name of the trust is Doe Family Trust, and the date that it was executed/completed/signed was Oct. 17, 2017. All assets that are intended to be trust assets should be titled in this manner; however, bank accounts and insurance policies do not need to be titled in this manner as long as the beneficiary designations of the bank accounts and insurance policies are updated to list the trustee of the trust as the beneficiary (same titling as above).
Beneficiary Designations for Married Couples:
Commonly, a trust is created by a husband and a wife. The husband and wife are both the grantors (or trustors) as well as the trustees. A husband and wife may often each have a 401(k) account or insurance policies that lists the other spouse as the beneficiary. For example, John Doe has a 401(k) and lists his wife, Jane Doe, as the beneficiary. After the creation of a trust, when both spouses are also trustees, John Doe may be instructed to update his beneficiary designation to: “Jane Doe, as trustee of the Doe Family Trust dated October 17, 2017.” This ensures that the proceeds of those accounts or policies are placed into the trust and are ultimately distributed commensurate with the jointly agreed trust provisions. If the beneficiary designation remains as simply “Jane Doe,” then Jane Doe receives those proceeds individually, and therefore she: 1) is not bound by the terms of the trust; and, 2) creates a risk for probate. If Jane Doe dies with the proceeds of an account or policy that exceeds $100,000 then those assets would be subject to probate, and all the work to create the trust (for probate avoidance) would be null.
Consultation: If you feel you have questions about anything estate planning related, please don’t hesitate to contact Haapalainen Law, by phone at (425) 563-3796 or request a consultation by clicking here.