How Long Will It Take to Create Estate Planning?
Video Summary
How long will it take to create an estate plan? Well, once you set up an appointment with an attorney and you provide ’em with all the information as to whom you would like to receive your assets, whether or not you want to Trust, and also who you want to make medical decisions for you. After he takes all the information in my office, I advise that I will send to them in the in mail, the documents for them to review and 10 to 14 days. The reason for sending them out by mail for them to review is so that they have a chance to read it, reflect on it, and make sure that that’s what they want, and also to correct any type of graphical errors. After they receive the documents, they call my office to set up an appointment and that I furnish the witnesses and the notary public as far as the proof of will and the notary and the power of attorney. So, it really depends on the attorney as far as how quickly it would take to put together your estate plan. After you have set the appointment up with the attorney and provided him with all the information, if you have any questions, you can call me at (727) 847-2288.
When Someone Passes, What Happens to Their Bank Account?
Video Summary
When someone dies, what happens to their bank account? Well, the first thing you need to determine is whether the bank account was joint or whether it had any beneficiaries. If it is a joint account, then it’s presumed that it goes to the person that’s on the signature card with the decedent, or if there’s a designation of beneficiaries saying it’s payable on death to a certain beneficiaries, then it goes to the beneficiaries and all they need is a death certificate. If the account is just in the decedent’s name, well then it has to go through a probate proceeding, either under a will or if they don’t have a will. In circumstances where it’s a small bank account, then there is a proceeding called a distribution without administration wherein if the amount of the funeral bill, which you paid, or whoever paid it is more than what’s in the account or the same amount, then the person who paid the funeral bill can make application to the probate court for distribution without administration. So depending on the size of the bank account, there may be a relatively simple procedure to see about getting the account if the money was used to pay the funeral Bill, my phone number, (727) 847-2288.
- Published in Probate, Trusts, Videos, Website Notices & Agreements
What are the Responsibilities as a Trustee of a Trust?
Video Summary
What are the responsibilities of a trustee of a Trust? Well, first off, we need to talk about the usual circumstance. Whenever you set up a trust and you’re the trustee during your lifetime, and so you are talking about the duties and responsibilities of the trustee after you pass away, and then the successor trustee takes over and it is now a irrevocable trust, and so the trustee should then notify the beneficiaries that there are beneficiary under the trust. Many times this can be done by simply supplying them with a copy of the trust, although you don’t necessarily have to unless they request that you need to. The trustee would need to file what they call a notice of trust with the clerk of the court, obtain a federal identification number as trustee of the trust so that it can file a tax return for the Trust for any income it receives during their, while they’re administering it, they need to determine what creditors there are out there and see about getting the creditors paid.
Another function the trustee needs to do is to verify if there are any assets that are in the name, just in the decedent’s name and not in the decedent’s name as trustee. If there are, there’s usually what they call a poor over will, and there would need to be a probate administration. These are usually done together and so that the trustee is usually the executor also for a will, and it’s called a poor over Will. That says that they leave all their assets to the trustee and then the trustee then administers the trust, pays the creditors, unless it’s a very sizable trust, there isn’t any estate taxes in Florida or to the federal government. And so then once that’s all done taken care of as far as accreditors, and then the trustee needs to make distribution and prefer an accounting for all the beneficiaries to make a distribution, the distribution pursuant to the Trust, and there’s a provision on how they to do that to the trustee can be released from any liability by sending a limitation notice out to the beneficiary. So they can’t object to how they administer the Trust. The assets can be distributed in kind, meaning distribute the assets such as stock. Some beneficiaries say, well, I just want the stock, rather than you are having to sell the stock and then liquidate it and divide up the money. So these are all things that a trustee would do and suggest that they probably need to contact an attorney for some guidance and assistance in conjunction with the matter. If you have any questions, give me a call at (727) 847-2288.
Even If I Have a Will, Should I Still Consider a Living Trust?
Video Summary
Even if I have a will, should I consider a Living Trust? Well, let’s talk about what a Will controls and what a trust controls, and then we’ll try and then you’d need to decide whether or not you would want to do a will and a trust or whether you’re satisfied with just the Will control whatever assets are titled just in your name alone at the time of your death. A Will will not control any assets such as joint bank accounts or bank accounts, have a beneficiary. The same can be said for a brokerage account. You can set those up so that there is what they call a TOD or transfer on death. Also, it doesn’t control life insurance, IRAs, or any other annuities or any other document that has a designated beneficiary. All of that is controlled by contract or the signature card. Now, a trust only controls those assets that are titled in the name of the trustee. Whenever you pass away, you usually are the trustee of your revocable trust, and then you’ve designated a successor trustee. And so that will only control those assets that are titled in your name as trustee under your trust. And of course, that designates who you wish to receive those assets. So whether or not you need a trust or not, or you need just use a will or whether you can title your assets so they pass automatically by designating beneficiaries. That’s all a product or a result of doing estate planning. That’s why they call it estate planning is so that you can discuss that with the attorney as to whether or not you need a will join assets or a trust or all three. So if you have any questions, give me a call at (727) 847-2288.
Why Would a Trust Be a Bad Idea?
Video Summary
Why would a Trust be a bad idea? Well, the first question I ask clients when they come to see me, they want to set up a Trust, is said, why do you want to set up a trust? The usual answer I get is because I want to avoid probate. Well, there’s alternatives to that, particularly if you want all your assets to be distributed at the time of your death to the beneficiaries. If that is the estate plan and the purpose of the Trust, that can be accomplished by how you title your assets. Just like your bank accounts, you can set those up so that they’re payable on death to the beneficiaries. Doesn’t have to go through probate. If you have your home, you can execute an enhanced life estate deed called a Lady Bird Deed works the same as a payable on death bank account. You have all the rights of ownership during your lifetime, but upon your death, it’ll go automatically. Go to the beneficiaries with a death certificate and avoid probate. If you have a brokerage account with say, Merrill Lynch or Raymond James or any brokerage account, you can then set that up so that there’s beneficiaries. That’s called a TOD designation, so those would automatically avoid probate and go to the beneficiaries. Also, your life insurance, annuities, IRAs, all of those have beneficiaries or should have beneficiaries, and so none of those go through probate. So if you don’t have a good reason to set up a Trust, that would be a reason why it would be bad to set one up because you’re basically just spending money that you don’t need to. In the past, Trust had been set up to avoid estate taxes, but estate taxes have been now elevated to you have to have assets over $13 million before there’s any estate taxes. So that would be the circumstance whenever I would not recommend, or I basically don’t draftTtrust if the person wishes their assets to be distributed at the time of their death and designated. Now, there are good reasons set up Trust, such as if you have minors and you want to delay the distribution of their money, or if you have a beneficiary that has a drug dependency or is a special needs trust. Any number of other good reasons set up trust. But if you just wish to do it, to avoid probate and you want an outright distribution, I think that’s a bad idea and save your money as far as the cost of setting one up. If you have any questions, give me a call at (727) 847-2288.