Video Summary

When do my responsibility start as a trustee? Well, the first time it starts is if someone sets up a trust or either you or someone else and you’re named as the trustee, well then, your responsibilities start away. However, you do need to accept the responsibility as a trustee. The usual scenario is, is that your parents or a loved one has set up a revocable trust for estate planning purposes. And they say who they want to receive their assets and then they name who they wish to serve as the successor trustee. And that instance, we would need a death certificate, for the person who set the trust up, which has served as a trustee. And then I would have you sign an acceptance of trustee and obtain a federal identification number for the trust so that you could then act in their capacity and distribute the assets or sell the assets of the trust, uh, for the beneficiaries and then distribute those. So your responsibilities start whenever you’re named, either as the trustee or successor trustee. And the circumstances have changed as whereby the original trustee can no longer serve, whether due to incapacity or death, and then you have the option of signing an acceptance. If you don’t wish to serve as trustee, you don’t have to undertake those responsibilities. If you have any questions about your serving as a trustee a under a trust will give me a call at (727) 847-2288.

Video Summary

Is there a minimum value required to establish a trust? No, there is not, but I think a better question is what’s the purpose of setting up a trust? I do a lot of estate planning and many times, I have clients come in to see me and the reason they want to set up a trust is to avoid probate. And so that is certainly a legitimate reason to set up a trust but there are other means of avoiding probate other than setting up a trust. Some of the other reasons why you may want to set up a trust is in the event there is a special needs beneficiary that you wish to provide for and you can put that in your trust or free standing trusts. There’s also trusts that are set up for life insurance so that they are controlled in an irrevocable life insurance trust.

There is also a Medicaid trust to qualify you for Medicaid. So the big reason to set up a trust is look at the purpose of it and then determine whether or not you need to set it up. But there is no minimum amount that you need to put in many trusts provided that if there’s less than a certain dollar amount, such as 50,000 or $100,000, the trustee may go ahead and do away with a continuing trust rather than going through the [inaudible 00:01:41] continuing to administer it. Also, you need to take in consideration the cost of setting up a trust, which may outweigh whatever amount that you put into it. So if you have any questions about setting up a trust, well, give me a call at (727) 847-2288.

Video Summary

What plans can I make for my pets in the event of my passing? Well, you can specifically provide in your will that you leave your pet to a family member or friend who you know who wants the pet, and will take good care of the pet.

I’ve also had any number of clients also designate their veterinarian to leave their pet to and asked that he find a good home for them.

There is a provision if you want to provide for your pet, is to set up a pet trust that would require you to designate two people in your will or in your pet trust.

One, to take care of the pet and two, a person who would monitor the care and how much money is given to the one who cares for the pet.

So if you would like to make out a will and provide for your pet or set up a pet trust, give me a call at (727) 847-2288.

Video Summary

Should the homestead property be held in a living trust? Well, there’s two schools of thought in conjunction with this. Some don’t see where there’s a problem, and some that say absolutely not. I think that you need to look at the particular circumstances, in order to be able to get a good answer to that.

If you are a single person, and you have a revocable trust that you want to leave the property to, and you do not have any minor children, then you can convey the property into your name, as trustee under the trust, and the trust will take of the [inaudible 00:00:58] of the homestead property.

If, however … If you are married and you have a joint trust, or you have minor children, then I do not suggest your doing that, in that it complicates matters and it may not be effective, because it may be considered an improper divisive homestead property.

What I have done is do neither, however, prepare a deed from the … for your homestead property, to provide that you have a life estate in the property, and then upon your death, then the property would pass to the homestead … the homestead property would pass to the trustees of your trust.

So if you have property, and you have a revocable trust, and it’s just in your name, give me a call and we will discuss on how to make sure that the provisions of your trust take care of disposing of your homestead property upon your death, without probate. My phone number is 727-847-2288.

Video Summary

May a trustee sell assets of a trust without the knowledge of the beneficiary? The answer is yes, they can. The trustee is in a fiduciary. Has a fiduciary obligation to the beneficiaries. As part of a trust administration, the trustee is supposed to supply a copy of the trust or offer a copy of the trust to all the beneficiaries. In addition to that, they should provide you with an inventory, the assets and the estate and every year provide you with an annual accounting. That way you can monitor what actions have been taken by the trustee.

They do have the obligation to treat this or handle these things on as a prudent investor or someone who has the beneficiary’s interest at the forefront. That’s the reason why you should be getting an annual accounting. You say, “Well, the trustee hadn’t given me any information. The trustee hadn’t given me an inventory or an accounting or anything else and they’re selling off assets.” Well, that’s where you need to probably consult with an attorney to see about making demand on the trustee and possibly filing a petition to have the trustee removed and force them to provide you with an accounting.

If you get an accounting and you believe that the trustee has sold assets for less than fair market value, well then the trustee can be charged and surcharged and removed for dissipation of the trust assets. The trustee does have the power to sell trust assets and does not have to consult with the beneficiary. They are responsible if they act irresponsibly and liquidate these assets.

My philosophy is always to try and be as transparent as possible with the beneficiaries and let them know what’s going on. Just because the beneficiary disagrees with the trustee, if the asset is being sold at market value or close to it, I think the trustee is protected.

Hopefully that answers your questions. I could certainly have heard where some trustees just go ahead and do whatever they need to do and they don’t tell anybody about it and may abuse their ability or the right to sell trust assets. If you have any questions, give me a call at 727-847-2288.