Many people are opting for revocable living trusts these days when they are making preparations for the future. These vehicles allow for a quick and efficient transfer of assets outside of the process of probate and this is the primary appeal. But in addition to probate avoidance, creating a trust can also help you avoid a potential guardianship proceeding in the event of your incapacitation. You could name an individual of your choosing to administer the trust should you become unable to make sound decisions on your own.

A revocable living trust may sound more complicated to the layperson than it actually is. You have a grantor or settlor who creates the trust, you have a trustee who administers the funds, and you have a beneficiary who will receive distributions from the trust in accordance with the trust terms that you set forth when you create it.

If you use a last Will to direct the transfer of your assets, your estate must go through the process of probate. When you consider the costs that are associated with probate and the time that it takes for probate to run its course choosing a revocable living trust to circumvent the probate process can be a more attractive option than a last will.

Should you be interested in creating a revocable living trust you can get the ball rolling by making an appointment to speak with a good Nassau County estate planning attorney. He or she will analyze your unique situation and make the appropriate recommendations.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Trust administration refers to the process of “taking care of trust business” and typically refers to the time period after you die. (Technically, you administer your trust when you are alive and well or disabled, as well.) A trust attorney (also called an estate planning attorney or trust settlement attorney) guides the Trustees through the trust administration process. Trustees are your trusted helpers.

Who administers your trust while you are alive and well? ? While you’re alive and well, you likely will administer your own trust. You pay your bills, manage your investments, and make purchases just as if your assets were in your own name. You maintain full control.

Should you become disabled a trust attorney guides your disability trustees through the process of getting a Disability Certificate and managing your day to day business affairs because you cannot.

After your death, the trust attorney guides your death trustees (also called “settlement” trustees) through the final administration of your trust. This involves gathering and protecting your assets which will be relatively easy if your trust is fully funded, meaning your assets have been titled in the name of your trust. Your trustee will pay any outstanding bills and file the appropriate tax returns such as your last income tax return, an income tax return for the trust, and any applicable inheritance or estate tax returns. When all the bills have been paid and the tax returns have been accepted, your trustee distributes the trust assets to your named beneficiaries, following the instructions in your trust.

Often a trust sets up sub-trusts for beneficiaries so there is trust administration for each sub-trust. For example, you may leave your assets in a trust for your spouse to protect the assets from squandering in a second marriage or from lawsuits. After your spouse dies, it is typical for your assets and your spouse’s assets to go into trusts for your children. These involve trust administration and protect your assets from a divorce property settlement, a lawsuit, bankruptcy, and medical disaster.

If you have questions about administering any of these trusts, consult with a qualified estate planning attorney.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

If you have a trust as part of your estate plan, you’ve likely chosen a friend or family member to act as trustee. But before you settle for naming the person closest to you – consider this: your trustee will oversee every aspect of your estate after you’re gone and depending upon what that estate contains, it could mean managing large amounts of cash and real estate or choosing future investments.

Do you have the right trustee in place?

The only way to know for sure is to remove the emotional aspect of choosing your trustee. Think about who is most frugal with money. Who can you trust to be fair and impartial? Who is responsible, trustworthy and fairly organized in their own personal affairs.

As much as you might love a family member, choosing someone who is always behind on their own bills or who never seems to have enough cash flow is probably not your best bet. Likewise, choosing someone who plays favorites within the family or someone who doesn’t know the difference between a bond and a mutual fund is probably not a good option either.

Of course, sometimes you’re limited in your choices but you can always go outside the family if you feel it’s necessary. The most important thing to understand is that the trustee will be responsible for ensuring that all your loved ones receive their fair share, that your assets are managed in the best possible way and that your wishes are upheld no matter what individual family members might think.

If you’ve got a loved one who fits this bill, great. If not, it might be time to look outside the family. To learn more about your options for choosing a trustee, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.