Are you concerned that your beneficiaries may still have a long way to go in learning to handle money? If so, you may want to protect them from misusing their inheritance by installing a spendthrift clause into your trust. What does this provision do? How can it protector your heirs from creditors?
The Benefits of a Spendthrift Trust
Once funds have been distributed to a benefactor, creditors can go after these assets. However, funds that are not under control of the heir or that have not yet been dispersed can be protected from certain creditors. This is where a spendthrift clause comes into play.
In a spendthrift trust, the funds are under the control of a trustee who distributes funds to the heir when he or she sees fit. Since the beneficiary cannot access these funds at will, they are not considered to be his or her property. This provides the additional protection from creditors who can only go after what the beneficiary actually owns.
There are, however, exceptions to every rule. For example, a court may direct that child support or alimony payments that have been awarded can be taken from a spendthrift trust.
Learn More About Your Estate Planning Options
To learn more about your estate planning options, contact the experienced attorneys at Petrov Law Firm by calling 619-344-0360. From developing an estate plan from scratch to reworking an outdated plan, we can help you to prepare for the future with confidence.Read More
What is undue influence? It occurs when an influencer (sadly, often a family member), exerts pressure on someone that causes the person to act contrary to the way he or she normally would. This is done by the one exerting the pressure (the influencer) in order to benefit him or herself. In other words, a person influences someone who is susceptible (due to age, the onset of dementia, etc.) to make financial or other decisions for his or her benefit (and usually to the detriment of rightful heirs).
This is an unfortunately common occurrence. How can you be sure that your estate planning isn’t subject to undue influence? Is there any way for heirs who feel they were cheated by someone exerting undue influence to take recourse?
Avoiding the Effects of Undue Influence
The best way to avoid undue influence is to have an ironclad estate plan in place that spells out your wishes in no uncertain terms. Should you decide to change your will or beneficiaries later in life, you need to be sure that your estate planning is equally meticulous, so no one can make claim that there may have been an influencer behind the scenes scheming for material gain.
When an Influencer Exists
Fortunately, there are measures in place to contest wills and other estate planning that clearly involved undue influence. But this ties up funds, sometimes for years, and wastes much of those assets on court fees. Thus, it is far better for heirs if estate planning is well thought out and documented
The estate planning experts at Petrov Law Firm will be happy to help you develop your California estate plan. Call 619-344-0360 to get your comprehensive estate plan started today.Read More
One of the things that we love to help our estate planning clients with is setting up a living trust. This gives you some great options. For example, while you are alive, you can serve as your own trustee and take care of the trust as you wish. You can also leave instructions for a successor trustee. What does the successor trustee do after you pass?
The Role of a Successor Trustee
A trust does not go through probate, so the executor of your will won’t have anything to do with the trust (unless it is the same person you select as your successor trustee). The successor trustee administers the trust after the grantor has died. Usually, the grantor will leave written terms to guide the decisions of the trustee.
A trustee is an appropriate name because you are trusting this individual to put aside his or her own personal interests on behalf of the trust and those who are designated as beneficiaries. Thus, even when it is necessary for the trustee to handle matters that call for decisions not outlined by the grantor, the trustee should be guided by what the grantor would have wanted as well as what is in the best interests of the trust itself and of the beneficiaries.
Selection of a Successor Trustee Is Serious Business
Because of these facts, you want to give serious thought to who you will assign as a successor trustee. You also want to leave detailed instructions, so your trustee has a firm basis for knowing your wishes. This will ensure that your beneficiaries get the maximum yield from the trust.
To set up a living trust and to put other estate planning measures in motion, call 619-344-0360 and speak to the attorneys at Petrov Law Firm. We are experienced estate planning attorneys serving San Diego and the surrounding areas in southern California.Read More
You may be looking for a way to leave your assets to heirs without the added time and expenses involved in probate. If so, a living trust could be exactly what you have been searching for. But does this mean that you are turning over control of your assets to a trustee?
If you set up a revocable living trust, then you are the trustee while you are still living. This gives you complete control over the trust. You can add assets or remove them from the trust at any time. It is a great way to leave property and other assets to your heirs and have them avoid probate without giving up control during your life.
However, when you pass away, your revocable living trust becomes irrevocable. At this point, a successor trustee will take over. He or she will then carry out your wishes for the trust in accord with any instructions that you have left behind. This makes it important to determine in advance what you want a successor trustee to do.
Providing Instructions for Your Successor Trustee
If you are a California resident in the San Diego area, Petrov Law Firm is your source for the best estate planning lawyers to help you leave instructions for your successor trustee that ensure your wishes are carried out when you are no longer here to do so yourself.
To learn more about how to set up a revocable living trust with a successor trustee in order to avoid having your estate go into probate, contact Petrov Law Firm at 619-344-0360. Our attorneys will be happy to help you get your affairs in order, regardless of how large or small your estate may be.Read More
When a person passes away, his or her retirement accounts do not go through probate. Instead, retirement accounts are automatically paid out to a beneficiary who is selected by the account holder. What are the different types of retirement accounts that a person may have? Why should you periodically check to see who your beneficiaries are?
Which Retirement Accounts Have Beneficiaries?
If you have a savings account, this can be left in trust. Or you may have another person’s name on the account. However, retirement accounts like IRAs and 401(k)s are different. These should have a beneficiary listed on the policy. If you live in California and have an IRA or a Roth IRA, your spouse will be the beneficiary. The only way to designate someone else is to have your spouse provide written consent allowing you to designate another beneficiary. The same is true with a 401(k). Thus, unless your current mate has signed a waiver and you have designated someone else, he or she is the beneficiary.
Why Maintain Your Beneficiary List?
You should check on your beneficiaries periodically, especially if you experience a change in life circumstances. For example, if you get divorced, you will likely want to change the beneficiary on your retirement accounts.
Of course, your retirement accounts may not be the only thing that needs changing. You may have to update the beneficiary on a life insurance policy, amend a will, adjust a trust, and so on. For help with all of your estate planning needs, contact the estate planning lawyers at Petrov Law Firm. We can help you keep all of your records in good order so that your wishes are carried out properly. To learn more, call 619-344-0360 today.Read More
If you determine that the best way to leave your assets to beneficiaries is via a trust that will help keep matters out of probate, there is still something vital to consider. What is the relationship between your heirs and the person (or persons) you are appointing as a trustee? Obviously, a better relationship will make things easier on those who are to inherit your estate.
What Does a Trustee Do?
When the trustor passes away, the trustee is in charge of keeping the trust safe and making appropriate distributions to any beneficiaries. So there are a few things to consider when appointing a trustee:
- Is this person trustworthy enough to carry out your wishes?
- Does the trustee have sufficient ability to handle this responsibility?
- Will the trustee’s relationship with the beneficiary help or hinder the proper distribution of the trust?
Of course, planning your trust properly can also help the process along, even if there is some disputing between the trustee and beneficiary. However, you can minimize how much of the trust ends up going toward administration costs by selecting the right person – someone who has the ability to care for the trust and the desire to do what is best for the beneficiary.
Help for Creating Trusteeships in San Diego, California
If you live in California and need advice or help in creating a trust, the estate planning attorneys at Petrov Law Firm will be happy to assist you. To learn more, call our San Diego and Chula Vista attorneys at 619-344-0360.Read More