The pandemic prompted more people than ever to think about whether or not their legal and financial affairs were in a place such that another party could take over if you were to become incapacitated or pass away.
Many people are now interested in thinking pragmatically about how their life would be handled in the event of an illness or a death. Basic estate planning documents, such as a will and a power of attorney are extremely important, but trusts can also be used to allow for peace of mind for loved ones and give you some sense of control over where your assets will go after your death. This is without the cost or even the stress of probate for your loved ones.
Additionally, if you have a substantial estate, trusts can serve as a way to safeguard against spendthrift heirs, protect your assets, reduce gift and estate taxes and maintain privacy.
An important decision when creating a trust is who will serve as the personal trustee. If not managed appropriately, the role of trustee can seem very overwhelming to a lay person.
There are administrative, financial, technical and ethical aspects to consider when selecting who will serve as a trustee. If one sibling is installed as the trustee of a parent’s estate, for example, this could lead to unnecessary disputes and conflict.
With the many changes in the world in the past year, you might have overlooked updating your estate plan. Revisit the possibilities of guardianship, powers of attorney, trusts, and wills in 2021.
The support of an experienced estate planning lawyer can go a long way in easing your fears and ensuring that you have the right strategies and tactics in place to protect your interests.
Don’t wait to get help if you need more information on the first steps to take. Our Pasadena estate planning law firm can answer your questions and help you.