what questions to ask an attorney if you're a trustee after a death

What questions should you ask an estate attorney after a death?

Here are some critical questions you should ask when you meet with an estate attorney in the wake of a loved one’s death. Is the Previous Power of Attorney Still Valid? You may have had a power of attorney for the loved one who has just died, and you may erroneously believe that the power of attorney is still in force.

What happens when a trustee of a living trust dies?

Below are the 5 questions the Wall Street Journal set out to answer, but at the Thav, Ryke & Associates Law Firm in Michigan, we know there are many more questions you will have (and many more questions you should be asking). Call us today! 1. Who is on the team?

What do I do if the executor of a trust dies?

The Top 6 Questions to Ask Your Estate Planning Attorney Your will may need to be updated if: You have moved to another state since your last will was signed. Different state laws control the steps for making a valid will. An estate planning attorney in your new state can help you review and update your will. You have a new grandchild.

What do I need to know about being a trustee?

Jun 29, 2021 · Here are several questions you should ask yourself: When meeting with a potential estate planning lawyer, how comfortable do you feel? Does your advisor communicate well and clearly? Do you agree...

What happens to trust after death?

If a successor trustee is named in a trust, then that person would become the trustee upon the death of the current trustee. At that point, everything in the trust might be distributed and the trust itself terminated, or it might continue for a number of years.

How do you cope with trust after death?

Here's an outline of what you're going to have to do, even for a simple trust:get death certificates.find and file the will with the local probate court.notify the Social Security Administration of the death.notify the state Department of Health.identify the trust beneficiaries.notify the beneficiaries.More items...

What is the consequence of not writing a will and planning for your estate after your death?

A will is a legal document that spells out your wishes regarding the care of your children, as well as the distribution of your assets after your death. Failure to prepare a will typically leaves decisions about your estate in the hands of judges or state officials and may also cause family strife.

What questions should I ask about a trust?

Questions to ask your parentsWhat were your intentions in creating this trust? Ask why this trust was set up. ... How do you think this trust will impact me? ... Who else has access to the trust? ... What is your relationship with the trustee and/or trust administrator? ... How will I work with the trustee and/or trust administrator?

Can a trustee withhold money from a beneficiary?

Can a trustee refuse to pay a beneficiary? Yes, a trustee can refuse to pay a beneficiary if the trust allows them to do so. Whether a trustee can refuse to pay a beneficiary depends on how the trust document is written. Trustees are legally obligated to comply with the terms of the trust when distributing assets.

Can a trustee withdraw money from a trust account?

Trust money can only be dispersed in accordance with a direction given by the person on whose behalf the money is been held. Further, trust money can only be withdrawn by cheque or electronic funds transfer. Regulation 65 of the Regulations governs the withdrawal of trust money for the payment of legal costs.

Who gets money if no will?

A person who dies without leaving a will is called an intestate person. Only married or civil partners and some other close relatives can inherit under the rules of intestacy.

How much does an estate have to be worth to go to probate?

Every state has laws that spell out how much an estate would need to be worth to require the full probate process—anywhere from $10,000 to $275,000.Dec 17, 2021

Does marriage override a will?

Marriage will revoke any Wills made prior to that marriage unless an exception applies. If you have a Will that was prepared and signed prior to your marriage, then there is a chance that the Will has been automatically revoked and would not direct your estate in the way you might expect or want.Jun 29, 2020

What should you not put in a living trust?

Assets That Can And Cannot Go Into Revocable TrustsReal estate. ... Financial accounts. ... Retirement accounts. ... Medical savings accounts. ... Life insurance. ... Questionable assets.Jan 26, 2020

What are the disadvantages of a trust?

What are the Disadvantages of a Trust?Costs. When a decedent passes with only a will in place, the decedent's estate is subject to probate. ... Record Keeping. It is essential to maintain detailed records of property transferred into and out of a trust. ... No Protection from Creditors.Oct 23, 2020

Does a trust override a will?

A. No. The trust is activated by the will on the death of the first spouse/partner, and not at the time of executing the Will. If you are both alive and in care, the trust would not initiated, hence the local authorities can target the property when assessing liability for care fees.

What is the best way to protect assets after a loved one dies?

The best way to protect the assets is to open the estate right away.

What to expect after a loved one dies?

The days and weeks following the death of a loved one can seem like a blur. The grieving process is difficult enough, but there will also be a funeral to plan, relatives to notify and financial issues to handle . Meeting with an estate attorney as soon as possible can ease your burden and make a difficult time easier to bear.

What happens if assets are less than debts?

If the assets in the estate are less than the debts and tax obligations, those debts do not become the responsibility of the loved ones left behind. Unfortunately, many people do not understand this, and they end up paying off debts for which they have no financial or legal responsibility.

What happens if you don't open a probate estate?

If you fail to open a probate estate, you could be liable for taxes and other claims. Even if you do not think a probate estate is necessary, it is important to discuss your options with an experienced estate attorney.

How to contact an estate attorney in Arizona?

Call Arizona Estate Attorney Dave Weed at (480)426-8359 to discuss your case today.

What to do if you are unsure about your taxes?

If you are unsure about the tax situation, you should contact the person who handled returns for the deceased. They should have copies of past tax returns, and they should be up to speed on any outstanding audits, tax debts or other issues. The days and weeks following the death of a loved one can seem like a blur.

Do debts disappear when someone dies?

There is a great deal of confusion about how debts are handled when an individual dies. Some people think that these debts simply disappear when the debtor dies, but that is not always the case. While some debts are forgiven on death, others follow the deceased and become part of the estate. The good news is that the family members ...

Why do you need a living trust?

Creating a living trust is an essential part of the estate planning process. It allows you to put your assets into a trust during your lifetime, making for the easy and efficient transfer of assets after you’ve passed. This is a highly beneficial tool for the trustee, as a living trust eliminates the need for probate court.

What are the drawbacks of a living trust?

Some of the main disadvantages of a living trust are that there are typically more upfront costs involved and it doesn’t cover any assets you forget to place in it.

What is the difference between a will and a living trust?

What is the difference between a living trust and a will? A living trust is active as soon as you put it into effect, whereas a will is only active after your death. There are advantages of both, so it’s something you should discuss with your attorney to identify which one is right for you. 5.

Is estate tax an unavoidable part of estate planning?

Estate taxes are an unavoidable part of the estate planning process . There are estate planning strategies to help your loved ones handle these taxes. Your attorney should be able to provide you with information on how to manage your estate taxes. 10.

Who is the most knowledgeable resource on changes to legal statutes?

This is a big one. An attorney whose primary focus is estate planning will be the most knowledgeable resource on changes to legal statutes and will be the most equipped to help you create the most beneficial living trust.

Can a will direct a living trust?

While a living trust is great for efficiency, flexibility, and privacy; a will can direct any assets you forgot to put into your trust. Before making the decision on whether you should get both, you should talk it over with your attorney. 9.

What to do if you are not both executor and trustee?

If you aren't serving as both executor of the estate and trustee of the trust, stay in close touch with the executor during these first few months. You need to know what the executor is doing and why. In many cases, the executor will transfer the estate's assets (assets not held in the name of the trust) to the trust, ...

What do you do with a will that is not held in the name of the trust?

In many cases, the executor will transfer the estate's assets (assets not held in the name of the trust) to the trust, where they become your responsibility. Here's an outline of what you're going to have to do, even for a simple trust: get death certificates. find and file the will with the local probate court.

What happens if you are not both executor and trustee of a trust?

If you aren't serving as both executor of the estate and trustee of the trust, stay in close touch with the executor during these first few months. You need to know what the executor is doing and why. In many cases, the executor will transfer the estate's assets (assets not held in the name of the trust) to the trust, where they become your responsibility.

How to notify Social Security of death?

If you need to notify Social Security, just pick up the phone and call 800-772-1213. You are required to return any Social Security payment that was for the month of death, no matter what day of the month the death occurred.

How to be a good trustee?

Don't be intimidated. Being a good trustee takes work, but it's not rocket science. With patience and effort, you can do a great job. For a step-by-step guide to everything you need to know to manage a trust, get The Trustee's Legal Companion by Liza Hanks and Carol Elias Zolla (Nolo). Talk to a Lawyer.

How long does it take for Social Security to deduct after death?

If social security payments were deposited directly into the deceased person's bank account, it can take a few months for social security to deduct the payments made after death, so make sure to leave the account open for a few months .

When are Social Security payments made?

Payments are usually made during the first week of the month for the prior month. So, for example, the check for March arrives in early April. If the settlor received payments for the month of death, the whole amount must be returned, even if death occurred on the last day of the month. If social security payments were deposited directly into ...

What is the most important thing to do when planning an estate?

One of the most important aspects of estate planning is preserving the value of your assets. In doing so, you can ensure the most generous possible legacy for the people you love. There are a number of tax strategies that can be useful, including the selection of the right kind of trust. Ask your lawyer for guidance.

What are the benefits of a will versus a trust?

1) What are the benefits of wills versus trusts? While most estate planning activity includes a discussion of a will, you may actually be better off establishing a trust. A trust allows you to shield your estate from the probate court, and also preserve some confidentiality.

Can you put your life insurance in a trust?

Most of your assets can be put into a living trust, though there may be some exceptions, including life insurance and certain types of retirement accounts. Generally, you’ll want to place as many assets as you can into the trust. Again, ask your attorney for further insight.

How to avoid probate?

Revocable living trusts are often used as a way to avoid probate. You establish a revocable trust while you are living to manage your assets. Your lawyer drafts the document for you and then you retitle most of your assets in the name of the trust. You can use the income, or principal if needed, from the trust during your lifetime to meet your needs. If you later change your mind, the trust can easily be amended to accommodate changes. You typically appoint yourself as trustee, but you can appoint a trusted friend, professional advisor or bank trust department as your trustee.

What is durable power of attorney?

durable power of attorney is considered a staple of any solid estate plan. This document allows you to name someone else to make financial decisions for you, such as paying bills or selling your car, should you become incapacitated and unable to make them yourself. It ends upon your death.

How can estate attorneys help with dementia?

Estate attorneys should help clients fiscally prepare for the possibility of disability or dementia by drawing up powers of attorney , healthcare directives, and living wills .

What are the things to consider when planning an estate?

When building an estate plan, you may have a variety of concerns, including the following: Maintaining an orderly administration of assets while you are living. Ensuring that your heirs and loved ones receive your assets. Helping to reduce or avoid conflicts and confusion.

Why is it important to have an estate plan?

It's important to have a solid estate plan in place to ensure that your loved ones receive your assets without a hassle or undue delay after your death. There are many questions you should ask prospective estate-planning attorneys before hiring one to craft your estate plan. Above all, make sure you hire an attorney who demonstrates ...

How to build an estate plan?

When building an estate plan, you may have a variety of concerns, including the following: 1 Maintaining an orderly administration of assets while you are living 2 Managing estate assets flexibly while you are living 3 Reviewing estates involving tenants in common or community property 4 Considering assets in multiple states 5 Examining small business assets 6 Naming your children’s legal guardian 7 Ensuring that your heirs and loved ones receive your assets 8 Helping to reduce or avoid conflicts and confusion 9 Minimizing legal expenses and taxes 10 Assessing wealth preservation

Why is it important to make sure assets are managed prudently?

Overall, it forces individuals to contemplate fiscal matters that will occur while they are living and after their own deaths. It's thus extremely important to make sure assets are managed prudently and that next generational family members will receive inheritances, without incident.

Is an estate attorney a tax advisor?

While an estate attorney's expertise may overlap with these fields, they may not be a general tax expert or investment advisor. Give yourself enough time to gain a broader, big-picture perspective on your estate plan and the logistical practicalities of implementing it.

Can a lawyer draw up a will?

Although any lawyer can draw up a simple will for straightforward situations, such as naming the beneficiary of one's 401 (k), seasoned trust-and-estate lawyers can help navigate more complicated situations involving several trusts and multiple heirs. 1:21.

What to do after death?

Once you sit down, talk through what you want to be done after your death, provide your lawyer with the right documents, and ask what else should be included in the will. This will help you figure out which provisions should and shouldn’t be part of your will.

What is a will?

A will is one of the most important documents you’re going to make in your lifetime, even if you’re not necessarily a millionaire. As long as you’ve got assets to leave behind to your loved ones, a will can help ensure that these are distributed according to your wishes after your death. Estate Planning. By Lawyer Monthly Last updated Sep 8, 2020.

What is a trust document?

A trust document will provide you with instructions for managing, investing and distributing trust assets. It will outline your authorities and how you are able to use the funds. If a trust document fails to articulate a specific purpose, then you may need to refer to state laws for guidance.

Do trusts pay income tax?

If a trust earns income, that income is likely subject to income taxes at the federal and perhaps at the state level. Because a trust is a separate taxable entity, different tax forms are required, and the tax rates differ from individual tax rates.

Is a testamentary trust a good time to understand the historical role of each adviser?

They may be a valuable source of any behind-the-scenes information. If this is a new trust (e.g., a testamentary trust created at someone’s death), it’s a good time to understand the historical role of each adviser and determine if they will continue in that capacity for you.

Do women have more control over their money?

WASHINGTON — As women control more of our nation’s wealth, they also are taking the reins on trust accounts established for their benefit. For many women, this may be the first time they have primary or sole control over a substantial amount of money. While having more wealth at your disposal provides an increased sense of security, ...

Can a trust protect you from lawsuits?

However, there are certain trust structures that improve your chances of shielding assets from a potential lawsuit. This will be of concern if you take control of a trust and also work in a high-liability profession — for example, as a doctor or lawyer.

Getting Started as The Trustee

Getting in Touch with Trust Beneficiaries

• Next on your list is to notify the beneficiaries of the trust. Start by reading the trust instrument and making a list of the people it identifies. A trust may not be perfectly clear about this. If the trust doesn't individually name the beneficiaries, but instead uses a term like "children" or "issue," you might need help understanding what state ...

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