Articles Posted in Trusts

pexels-photo-335907-300x201There are some clear benefits to storing your will and documents online. You and your spouse (or other authorized people) can access them anytime, from anywhere. We are used to putting our lives online.  However, there are also some downsides to consider before doing so, according to a helpful article from CNBC titled “Here’s what you need to know before storing your will online.”

It’s good to have all your important documents in one place. Make sure that the people who will need access, such as executors, know that you’ve done so or the cloud storage may well be pointless.

Online storage can also facilitate family conversations about estate planning. Even tech savvy adult children who scoff at parents who don’t engage in social media, will be impressed by a decision to go digital.

However, there are pitfalls. Continue reading

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Retirement

“Many seniors may be more focused on their bucket lists, than worrying about having their financial affairs in order.”

Seniors should be having some heart-to-heart discussions with their spouses and loved ones about their wishes concerning their assets and their final days, according to Intermountain Catholic in “Retirees Have Several Financial Issues to Consider.” After a loved one dies, family members are often left dealing with the expenses of their medical care and funeral. To be left to deal with these issues while grieving, adds another layer of heartbreak. It doesn’t have to be this way.

pexels-photo-684387-300x198Do you remember that episode of the U.S. version of “The Office” where Michael Scott thinks he can seek bankruptcy protection from his creditors simply by walking into the office and stating, “I declare bankruptcy!” Obviously, that is not how bankruptcy works. Yet, when it comes to estate planning, some people operate under a similar misunderstanding of the law; they think they can shield their assets from their creditors by placing it in a trust.

How the Law Treats Revocable Living Trusts

Now, there are ways to use trusts as a legal means of asset protection, but when it comes to a revocable living trust–the most common form of trust used in estate planning–that is not the case. A revocable living trust is a means of avoiding probate, not a way to avoid paying back your creditors. Continue reading

john-oliver-cabin-1212564-639x427-300x201“In the coming decades, baby boomers in the U.S. are expected to transfer an estimated $30 trillion in assets to subsequent generations. For many families in Minnesota, that will include the family cabin.”

One of the key markers of summer in many areas is crowded roads, as folks head out of the city to their summer retreats, like the Outer Banks of the Carolinas or the Berkshire Mountains. They know it’s summer in Minnesota, when the roads are filled with families headed to lake cabins. The tradition may not last another generation, according to MinnPost’s in “The uncertain future of cabins in Minnesota.”   Continue reading

Bad-Trustee-150x150Although trusts are not difficult to create, they do require a certain degree of administration. If you are presently serving as a trustee, particularly of an irrevocable trust, you must take care to faithfully execute the trust instrument’s instructions. If you do need assistance with trust administration, you should not hesitate to contact a qualified Madison probate and trust administration attorney for assistance.

Wisconsin Court Orders Ex-Trustee to Pay Sister $100,000

Recently, a Wisconsin appeals court affirmed an order removing the trustee of an irrevocable trust precisely because he failed to follow the trust’s instructions. The trust was first established over 20 years ago. The person who made the trust, known in legal terms as the settlor, operated a bed and breakfast in Lake Geneva, Wisconsin. The trust owned a 30% interest in the limited partnership that actually owned the property. Continue reading

dollar-security-150x150One of the more complicated aspects of estate planning is that while probate, or the process of transferring property upon a person’s death, is normally controlled by Wisconsin state law, most retirement plans are governed by federal law, specifically the Employee Retirement Security Act (ERISA). The ERISA “preempts” or overrides state law to the extent that there is a conflict between the two. Continue reading

trustee-300x160When you are creating a will or revocable trust as part of your estate plan, you need to think carefully before selecting someone to act as a personal representative or trustee. Many people just go with their nearest relative, such as a spouse or eldest child, but a fiduciary’s role is not ceremonial. An executor or trustee must be financially responsible and demonstrate the willingness to comply with legal deadlines and court orders. Failure to do so can lead to a substantial delay in administering your estate or trust.

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1222896_coins-sxchu-username-iproleOne reason many Wisconsin residents create a trust is to reduce their estate’s potential estate tax liability. For example, with a qualified terminable interest property (QTIP) trust, married couples can maximize the potential estate tax deduction for their combined property. Basically, the way a QTIP trust works is that the first spouse to die leaves a “life estate” in his or her property to the surviving spouse. This means the surviving spouse may continue to use and receive income from the deceased spouse’s property. The property itself remains in trust until the second spouse’s death, at which time the trust assets are distributed to a final beneficiary, such as the couple’s children.

Wisconsin Court Holds Father’s Will Did Not Create QTIP

Creating a QTIP trust is not necessarily difficult, but it is something that must be done carefully to ensure there is no confusion as to your intentions. If you did not clearly intend to create a trust, do not expect a judge to make one for you after you die just to help your estate save money on its estate tax bill. The law is not that generous.

Here is a recent case in point. Four adult children attempted to sue the law firm that handled their father’s estate more than 30 years ago for malpractice. The children maintained that their father had intended to create a QTIP trust and the attorneys failed to do so after his death, eventually leaving the children with an estate tax bill of over $260,000. Continue reading

Living trusts are a flexible estate planning device that you can amend, modify, or revoke at any point during your lifetime. Of course, once you pass away, the terms of the trust become irrevocable. In other words, your successor trustee is Trustbound by its terms and must administer the trust assets as you direct.

This also means that your choice of a successor trustee is critical in ensuring the successful administration of the trust. Many people create a trust because they fear certain family members gaining control of their estate. Having a strong trustee in place, which in some scenarios may even mean appointing a non-relative or corporate trustee, can help ensure that the trust ultimately fulfills your wishes. Continue reading

Are You Making Some of the Biggest Estate-Planning Mistakes?

There are some things we just don’t like to think about, much less speak about. The universal truth is we are all going to pass away one day. The legacy you leave can either simplify the process of dealing with your personal and financial property, or it can be a worrisome burden for those you leave behind.

Legacy planning is as important as your final wishes. So, as much as you avoid the topic, it can’t be — and shouldn’t be — ignored.