Right now, Mary and I are busy writing a book about estate planning. While the book discusses a variety of estate planning tools and explains the legal implications of each, the purpose of the book is to force the reader to evaluate his or her family situation and chose the tool that works best for the family.

Usually, people assume that certain estate planning decisions are made because of an individual’s net worth; however, the assumption is incorrect. While the value of a client’s estate often establishes the parameters for planning, it is only one part in establishing the plan. For example, a client may choose to establish a living trust instead of just a will. This is a decision that is often motivated by the size of the estate or the type of assets in the estate; however, after selecting the appropriate tool the client must make important decisions. The client must select a successor trustee to administer the trust in the event of the client’s disability or death.

Many people immediately select their oldest child; however, your oldest child may not be the best person for the job. Your child may live far away from you or may not be the most responsible of your children. And even if he lives near you and is the most responsible, he may not get along well with his siblings. The book reminds people to look at their family dynamics and select a plan that will allow their estate to be distributed in the most efficient manner possible while maintaining family relations.

Check out the two estate planning books Mary has previously co-authored Guiding Those Left Behind in California and A Will is Not Enough in California. Both are available for purchase through our website www.falkandcornell.com.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Often, in establishing an estate plan, designating the beneficiaries can be the easiest task. However, locating them after you pass away is not always easy. If an individual has children, the residual estate is almost always divided among the children. Sometimes, estates go to nieces and nephews, or brothers and sisters. While these people are generally life-long loved ones, they may live at a distance.

When a specific bequest or percentage of an estate is left to an individual with an unknown address, it is the Trustee or Executor’s duty to search for this person. The Trustee must engage in due diligence, in looking up last known addresses, speaking to people who may know or have seen them. Sometimes, this task can be quite daunting.

Just recently, a New York law firm hired a private investigator to search for a homeless Utah man who was to receive a sizable inheritance from his deceased brother. It had been about eight months since the family had spoken to him and about fifteen years since they had last seen the man. The private investigator engaged in a diligent search, spoke with the manager of a rescue home who spoke of where the man might be, and investigated every tip received. Finally after a two month search, the man was located in a park in Salt Lake City. With the inheritance from his brother, it is likely that he will be able to leave the streets, provide for himself and have a normal life.

Inheritance is a privilege and a blessing, it can be life changing and often unexpected. It may help a grandchild attend college or assist in the purchase of a home or in this case, it may be what someone needs for a new beginning.

To help ensure your beneficiaries will receive what you leave to them, it is a good idea to update their contact information and leave this information with your estate planning documents at home. If you have any questions regarding designating or changing your beneficiaries, please contact us.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

When appointed to act as the Successor Trustee upon the incapacity of a trustor, you have an abundant amount of responsibilities and tasks at hand. Oftentimes, there are several family members involved, all wanting to help and provide input. While support is important, a Trustee must balance their priorities.

The first is always to ensure that the necessary steps are taken to ensure the well-being and safety of the trustor. This involves making sure the trustor is in a comfortable living environment, is receiving quality care, and their financial assets are protected and used for the trustor’s benefit.

There may be other surrounding issues such as preparing and selling a home which may be time sensitive. While the Successor Trustee must protect the asset and act in the best interest of the trust and the ultimate beneficiaries, the Successor Trustee must focus on issues at hand.

The Successor Trustee must use their discretion to prioritize. In doing so, it may be necessary for the trustee to set aside other issues including beneficiary inquiries and concerns which can be addressed at a later time. Being a trustee is a big undertaking and all interested beneficiaries need to understand the primary concern is to take care of the Trustor and their immediate needs.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Is a trustee free to do whatever they want? For instance, can trustees make changes to a trust? I was recently asked these questions by a family member and I think it is worth explaining as many people are probably wondering the same thing.

First, whether or not changes can be made to a trust depends on whether or not the trust is revocable. Some trusts are irrevocable when they are created; an example is an Irrevocable Life Insurance Trust. A trustor (also known as a grantor or settlor) is the person who sets up a trust. Often, trustor(s) act as trustees of their own trust during their lifetime. On the other hand, if the trust is revocable, then the trustor can make any changes they want to their trust during their lifetime, and can even revoke it entirely. If the trustor is not acting as trustee of their own trust they may have to notify the trustee of any changes they make (depending on the terms of the original trust), but only the trustor has the power to change the terms of the trust.

Once the trustor either passes away or becomes incapacitated, whoever is designated as the successor trustee(s) would step in to administer the trust. It is the trustee’s duty to administer the trust according to its terms. Also, once the trustor(s) passes away, the trust becomes irrevocable, thus no further changes can be made to the trust except in rare circumstances and only by court order. So the answer is no–trustees’ powers are limited by the express terms of the trust and only the trustor(s) who created the trust has the power to make changes.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.