Begin Your Estate Plan
The following information is necessary for your estate plan. If you have any questions about the designations you will make, please contact me.
Guardian
Your guardian should be an individual or couple who would raise your children the same way you are raising them.
successor trustee
This person will administer the trust assets if you are incapacitated or deceased. You should name someone who is loyal, trustworthy and has common sense in financial matters. He or she does not need to be a financial whiz. You may name Co-Trustees if you so desire, but do not name a husband and wife because you will be merely adding more paperwork without getting additional benefit. You should consider naming an alternate to the Successor Trustee because the trust could be ongoing for many years. The Trustee will gather up the assets upon the death of the survivor of you, invest the assets, file income tax returns for the Trust and make distributions to your children based upon the provisions you set out in the Agreement of Trust. He or she must also provide an annual accounting to the beneficiaries (or their Guardian, if they are under 18).
trust provisions
A. Children. Most people spend their inheritances in six months. I recommend that distributions be given to your children over time. Many people prefer to have a single trust for all of their children until the youngest reaches the age of 23 (and presumably out of college). During that time, the Trustee would provide for the children's needs but the children would not have the right to a regular income. Once the youngest child reaches the age of 23, the trust would be divided into equal shares for each child and the children would begin to receive the interest and dividends generated by the trust. The Trustee would be able to tap into the principal to provide for additional needs, such as graduate school, a wedding, purchasing a home or starting a business, but those expenditures would be made only if the Trustee felt they would be beneficial. At some point, the children should receive the "windfall" - the amount remaining which they do not need. Many people provide that the windfall should be distributed ⅓ each at ages 30, 35 and 40. Consider what provisions you would like for your children.
B. Grandchildren. Do you want the share of a deceased child to be distributed to his or her children if he or she leaves children? Most people do. At what ages should the grandchildren receive their inheritance? Most people select the same ages as those they selected for the children.
C. Remote Beneficiary. Who should be a beneficiary if you should leave no descendants? Many people leave ½ to the husband's family (i.e., parents, if living; otherwise, brothers and sisters or nieces and nephews) and ½ to the wife's family. Some create educational trusts for nephews and nieces. Some leave a portion to charity.
financial durable power of attorney
The financial durable power of attorney enables you to appoint an Agent to make financial decisions for you. It can be made effective when it is signed or can spring into effect only when two physicians certify that you are unable to make your own financial decisions. Consider when you want the Power of Attorney to take effect and an alternate to act if your spouse is unable to act for you.
medical power of attorney
This document only takes effect once two physicians determine that you are unable to make your own medical decisions.
Get Started with an Estate Plan Questionnaire
Begin thinking through your trust provisions, designations, and other important information by downloading and filling out this questionnaire. Then schedule a consultation to determine your next steps.
