We made it through another year. Landing in December with the typical bipolar weather well known in the 757. This year I feel like I just got my feet under me in November. But I feel anticipatory for my girls to be home, to celebrate new starts and old traditions. The firm has been handling lots of estate matters which always reinforces for me the need for clear and direct estate plans. One of the most pressing questions from potential clients is, “do I need a trust?” That question is akin to, “do I need a bike can’t I just walk?” Sure, walk on, but given the opportunity to ride the bike wouldn’t it be better to learn and ride the bike. You arrive quicker, it is less stressful and you get to exercise which are all positive. The counter question I always use to see if a trust will work for my client is, “will you use it?” That answer is critical because a living trust is hungry and it has to be fed. How do you feed a trust? You move assets into the trust so the trustee of the trust can manage the asset. I think all clients should explore if a trust is for them but factors can be weighed in favor of a more traditional power of attorney, advanced medical directive, and last will and testament model. The ones I encounter are usually cases in favor of a trust.
Here are some scenarios that might prompt you to see a trust as the estate plan you want for Christmas. A trust might be the preferred route if you have:
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Blended family
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Young children
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Family discord
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Elderly single parent
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Family business
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Rental property
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Widow or widower
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Primary asset is real estate and you want to avoid creating complicated multiple owner conflicts
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Probate avoidance
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Needed privacy
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Ease of management
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Large estate with multiple different assets (this is not just monetarily but assets that might require increased management like apartments or diversified stocks.
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A institutional trustee because you don’t have a reliable executor
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Young kids that need years of managed assets by a reliable trustee so an institutional company is preferred
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No immediate family to manage your estate and you need to create long term charitable plans
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a large inheritance you are receiving
There are others but the best idea is to meet with a lawyer to see if you are a candidate for a trust. Take the training wheels off that bike.
Albert R. Hartley
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