What should I consider when selecting corporate Executors and Trustees?
a. The advantages of having a Corporate Executor/Trustee Specialist in handling estates/Trusts. No emotional bias. Impartial - usually free of conflicts of interest with the beneficiary. Never moves or goes on vacation. Never dies or gets sick. b. The disadvantages of having a Corporate Executor/Trustee Usually little familiarity with family. Administrative fees may be much higher. May go out of business or merge with a Trust department you find unsatisfactory. Often are predisposed to keeping funds under their management, rather than dispensing to beneficiaries who may have genuine needs.
What should I consider when selecting an Individual Executor/Trustee?
a. The advantages of having an Individual Executor/Trustee More familiar with the family. Administrative fees are generally lower. More efficient in modest estates or traditional family structures b. The disadvantages of having an Individual Executor/Trustee Probably not experienced in handling estates or Trusts. May not be impartial. Could have schedule conflict or live too far away to do the job properly. Could be incapacitated at times or no longer competent when you need their assistance.
Should I transfer the ownership of my Individual Retirement Account (IRA) or other Retirement Plan to my Trust?
NO! If you do so, the entire amount of your retirement account will be immediately taxable. If you have a Roth IRA, its benefits will not be taxable to your children or your estate. Despite a potential tax disadvantage, some people consider designating the Trust as beneficiary of all or a portion of their "Non-Roth" IRA in order to care for beneficiaries who would otherwise receive the IRA portion outright.
Will leaving money to a “special-needs” child who is receiving disability or Medi-Cal payments affect those benefits or payments?
Yes. Leaving any part of your estate to a special-needs child who is receiving disability or Medi-Cal payments could have the effect of terminating those payments until the child has exhausted the entire amount of the bequest. If you find yourself in this position, discuss it with us privately and, together, we will carefully consider what you should do before you make any decision. There are many solutions to this potentially troublesome issue.
Should I make a Trust the Beneficiary or my life insurance policies?
We normally recommend that you name your revocable Living Trust as the primary beneficiary of your life insurance. If you are married, your surviving spouse is typically a Co-Trustee of the Trust and the beneficiary of the Trust, and thus would manage any insurance proceeds paid to the Trust for his or her own benefit. In the event that the surviving spouse is legally incapacitated, the successor Trustee would have the legal authority to step in to manage and distribute the insurance proceeds for the benefit of the incapacitated surviving spouse. If you are single, or your spouse predeceases you, ... Read More
What is a HIPAA Release and Authorization?
The Health Insurance Portability and Accountability Act (HIPAA) is a federal medical privacy law. You see evidence of it anytime you go to a pharmacy to have your prescriptions filled or visit your doctor's office. It prevents unauthorized third parties from gaining access to your private medical information. Nevertheless, the last thing that you want is your health care agent (the person responsible for saving your life or removing life support) being denied access to your medical records to make meaningful and informed decisions. The HIPAA Release and Authorization allows your loved one to protect you by accessing your medical ... Read More
