Asset Planning, Inc Blog

The latest from the team.

The Importance of Choosing the Right Trustee


More and more people are realizing the importance of setting up a trust for their estate. Having a trust in place insures that your wishes for your estate are carried out on your terms if you become unable to care for yourself or pass away. It also prevents your assets from going into probate after your death and saves a huge headache for your heirs. While having a trust in place is very important it is also very important who you name as the trustee.

There are a few different options when selecting a trustee. The most common scenario is that a married couple sets up a living trust where they are both listed as trustees and they list a child or family member to become the successor trustee. In the case that one spouse passes before the other the living spouse will become the sole trustee until they are incapable of caring for themselves or they pass away. At that point the successor trustee in charge of handling the estate duties.

The responsibilities of managing an estate are many and can be daunting to someone who lacks experience in these types of situations. When choosing your trustee you should choose someone who is (a) willing to dedicate the time and energy to run the estate (b) responsible and possesses good judgement and (c) someone who can be objective when following the instructions set up in the trust. It may seem like the natural choice to choose your child or a family member to act in this role but it may not be the best choice depending on the complexity of your estate and their abilities.

In the case where a person is unsure of who to name as a trustee an estate attorney will usually suggest that a bank be set up as the trustee to carry out the responsibilities of the trust. This is called a corporate trustee. This seems like a good idea because a bank has experience with handling trusts and wealth management. But this is not always the best choice either. When the duties of a trustee are needed the bank will take over the trust, move your assets from whatever accounts you have them set up in now to investments of their choosing and will take over the estate. They will follow the instructions in the estate as wished but it may leave your family without the feeling of a personal connection since they may not have worked with that bank before or know the person handling the assets.

Did you know that you have another option that will help ease the burden on your loved ones by running the estate themselves? There is something called an administrative trustee. In a lot of cases we see a child take over the duties of the estate and get overwhelmed with the process. They may be doing it free of charge but in the long run trying to take care of everything on their own ends up costing more financially and emotionally. An administrative trustee is a company that is set up to handle all of the time consuming paperwork and filing responsibilities of the estate. They do not make any decisions as far as wealth management is concerned. That is still the responsibility of the trustee and their financial advisor. Yes, there is a fee to have an administrative trustee but it can outweigh the stress and headaches that come along with trying to do everything yourself.

The best thing to do is have an open discussion with your family, estate attorney and financial advisor. Make your goals and wishes for the estate clear and set up the trustee that you think will be the best fit for your personal situation. By doing this you will have the peace of mind knowing that your wishes will be followed and that your family will be taken care of in the way that you want.

Continue reading
  1438 Hits
1438 Hits

Top Reasons to Set Up a Living Trust


Even if you are not super wealthy there are many benefits to setting up a living trust. A living trust is a document set up by an estate attorney to help you manage your assets, including property while you are alive and names a trustee to act on your behalf to carry out your instructions, if you become incapable of caring for yourself or pass away. Here are a few of the top reasons why you should set up a trust.

Avoids Probate- A trust allows your heirs to bypass probate which can be a lengthy process and your estate can be charged up to 5% in probate fees. This can mean a substantial savings in time, legal fees and paperwork.

Protection Against Disputes- Unfortunately there may be someone who is unhappy with the way you have instructed to have your assets distributed. A trust is harder to contest than a will is because they have to be able to prove that you were under undue pressure or influence in setting up the trust which is nearly impossible.

Flexibility- Trusts offer more flexibility in how you can distribute the funds. In the case where you may have minor children you can specify how the money is spent and when they would have full rights to the funds.

Avoids Estate Taxes- A trust can provide a way to avoid or reduce estate taxes because assets and property placed into a trust are not subject to these taxes.

Minimizes Family Conflicts- You can specifically detail exact items and monetary distributions to be given to each beneficiary. This helps to curtail any of the “who gets what” problems that may arise with family members.

Privacy- Trusts, unlike wills, are private because they do not go through probate. This means your assets and who you leave them to are kept private.

Continue reading
  1410 Hits
1410 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
fun atmosphere car loans retirement June 29 Medicare Advantage September 8 April 18 2017. email notifications ice cream prescription eyeglasses Asset Planning January 10 official certification Joey Gonzales April 11 October 1 2020. illiegal robocallers 20 year anniversary July 6 home break-ins CERTIFIED FINANCIAL PLANNER exam tax season Roth IRA asset Planning contribution limit Auto insurance stock pile retirement planning tax filing deadlines pet donation drive pet industry blog post life saver Amazon paper records cell phone service provider stimulus package Facebook profile pet supplies hurricane Dorian jury duty earthquake app partner /owner July 3 rd credit card company Mobile Banking Security Tips money donation items drive /usb emergency folder records paperwork clutter cell phone carriers offer operations manager CARES Act borrowing money cell phones Medicare plan 23 andme information media accounts chip-enabled EMV cards CA FTB 401K parking spots 2017 IRA contributions Healthcare Social Security Administration tax returns spam phone Expired medications insurance policies Part B Brexit vote company Erin Nelsen opt-out markets ice cream event health care services 70 1/2. spring cleaning 2017 TD Ameritrade National LINC Conference Open Enrollment summer banking February 14 checklists Part D premiums . information Facebook September 9 “ skimmer ”. cell phone SIM swap scam cell phone provider Puerto Rico client portal Independence Day Orange County Superior Court Wells Fargo employees IRS deadline holidays approach ID card family members phone FSA bottom line documents phishing scams Coronavirus Aid privacy notices Medicare Part B premiums text messages D premiums phone companies Two-Step Verification portal fun facts emergency kit National Ice Cream month credit cards executive order team members 2018 IRA contributions spread IRS policy identity thieves settlement options Medicare question credit freeze gap insurance non-prescripstion sunglasses Labor Day pet home emergency kit interest home mortgages flash drive account numbers VOIP landline phones Open House payments Kraig Mathias DNA test kits home security credit score EEChecklist-Kits.pdf stockpilingchecklist.pdf Financial Planning Magazine retirement plans wells Fargo increase Affordable Care Act phishing sites credit monitoring service president Trump investment statements offering insurance self-help topics 2017 Equifax breach FEMA website Medicare memorial Day weekend 4 pm -8pm Victor Dergunov trust vision screening July 4 toilet paper Federal Trade Commission website https :// vacation COVID -19 virus Wells Fargo customers integral member Notary Public scams cell phone carriers earnings fallout tax deadlines Ice Cream Social 900 number items credit card fraud clients show support Orange County April 15 trustee app emergency kits Charles Schwab people medications assets donation counts water … web address estate years https ://seekingalpha Shred paperwork insurance policy home emergency preparedness kits coronavirus birth certificates July weekend business hours Social Security market turmoil estate planning direction retirement accounts fees house sitter disaster areas tax deadline Flexible Spending Account clone counterfeits news coverage consumer spending Kiplinger Letter California Lions Friends rescue organizations estate planning Supplemental Security Income notary services identity theft card reader health care costs Treasury Department tax records clients breach padlock IRA accounts Fox News story student loans check lists home pets Legal robocalls driver license interest rates relief efforts September 30 2020. debt Retirement Contribution Limits Economic Security Medicare Part B CFP ® TD Ameritrade privacy settings