For 20 years I have been telling people how to "put" their bank accounts and other assets into their trusts. Some things, like real estate, are pretty easy. We just prepare a deed, our client signs it, and we send it in for recording. Clients who work with full service financial professionals also have it easy as the staff at those financial companies tend to be well trained at trust funding.
We usually start with a letter to the financial institution. If that doesn't do the trick then we always advise our clients to go into the branch if that's possible. Some things are just best done in person though. I have not put a new asset into to my wife and my trust in some years. We have had a trust for about 15 years, banked at the same credit union throughout, and never put our main ba
As a California estate planning and probate attorney I see both sides. I see the planning process and I see what happens, after death, when the planning wasn’t done right. Here is a top 10 list of estate planning mistakes:
10. Name your estate the beneficiary on your IRA, 401k, and other retirement plans. This is a great way of creating unnecessary tax and probate fees and costs. It also will delay the time when your family will have access to the money. Attorneys and the tax man will love you for it! Your family won’t be so happy with you though!
9. Name your estate the beneficiary on life insurance. Similar to above it creates unnecessary delay in access to the money and causes costs and fees. Your family won’t love you for this.
8. Name no beneficiary on your 401k a
When I go through the estate planning questionnaire with a client I suggest they think long and hard before selecting their trustee. In fact, if they hesitate for a split second when naming someone I ask about it. For example, they might say, “well our son is probably our first choice… well… ahhh….” The second I heard the word “probably” I was wondering what that was about. I know it does not mean their son is dishonest but maybe he has an overbearing wife? Or maybe he and his brother don’t get along. Or who knows!? The point is there is a reason they said “probably.” I thus bring you 10 characteristics to look for in your chosen trustees in no particular order:
- General competence
- Financial experience
- Life experience
- Ability to see things fr
The “A/B” trust is a very common set-up for married couples in the estate planning world. I should say there are different names for these trusts. I call it an A/B Trust. Others may be call it a Bypass trust, a credit trust or even a 1/2 trust. Whatever you call it a split trust is a common estate planning vehicle. How does it work?
There are 4 main options for a standard husband and wife to consider in trust planning. That is, at the first death what happens to the trust.
1) Totally revocable: This is the simplest trust. I call it a “probate avoidance” trust. It’s the simplest and most straight forward trust. The downside though is that the surviving spouse can completely change the trust and disinherit the kids. However, assuming no estate tax issues this is a good option f