Your Estate Plan Every estate plan is unique to the individuals involved.
Who have you decided to name as your Successor Trustee? A family member, friend, Private Trustee, Bank or other Professional? The job of Trustee has a great deal of liability and responsibility, that come with years of work.
Ask your attorney, "What is my Successor Trustee expected to do when I resign, become incapacitated or pass away?"
Ask the following questions of everyone you are thinking of naming as the "one in charge" when you are gone:
1. Does my successor trustee have experience and expertise in handling finances? Good accounting and bookkeeping skills? Trust and Estate tax experience?
2. Will my successor trustee remain objective, responsive and compatible with all beneficiaries of the trust and other members of the family?
3. Will my successor trustee be able to devote sufficient time to the management of the trust, unburdened by other obligations such as a job or a family, for three or more years?
4. Is my successor trustee also a beneficiary, causing a "Natural Conflict of Interest"?
We encourage you to use the above questions to interview your potential Successor Trustee.
If you select a professional as your successor, give yourself an opportunity to get to know the person. Is the individual you are interviewing licensed or exempt from licensing? Find out which organizations they belong to (like the Professional Fiduciary Association of California) and what training they have received (designations such as, Certified Trust and Financial Advisor from the Institute of Certified Bankers or Certificate in Professional Fiduciary Management for Trustees, Cal State Fullerton). If you select a Bank or Trust Company, meet the Trust Officer who you will be working with and ask enough questions to feel comfortable with your selection. We encourage you to keep learning about your Estate Planning Process.
We are here to help you succeed.
Estate plans generally include the four basic documents listed below. We also serve on a variety of trusts, drafted in California, such as Charitable Remainder Trusts, Irrevocable Life Insurance Trusts, Special Needs Trusts, etc. Please consult your attorney regarding any specifics(as in the Probate Code in your State), as we do not give legal advice and we offer this information as a general guideline just to get you started. Expect to update your Estate Plan from time to time, as we know that changes happen in every life and every plan.
We have seen many families benefit from the investment in working with an experienced estate planning attorney to craft an estate plan that will meet the needs and legacy desires of the trustors. Your attorney, as an educated professional, continues his/her education, stays up to date with the changes in the law and asks good questions to help you determine what you would like to accomplish. Your financial advisor or tax professional may know a qualified estate planning attorney in your area. For a referral to a qualified legal or financial professional in your area, Contact us.
Lorenz Fiduciary Services does not give legal advice. We do not draft estate planning documents, we implement them. We are aware that there are inexpensive, generic fill-in the blank trust/will forms available on the internet and through document service companies. Some businesses offer inexpensive estate planning in conjunction with some financial product they sell. Legal Document Service companies can make copies and possibly help you with filing, but none of thesemay be able to give you legal advice or assist your family to navigate through all the consequences when the time comes.
Many unhappy/costly situations, like Probate, can be avoided with good planning and having a well trained individual administer your estate. Asking a well meaning relative or friend to do a professional's job is no favor to the estate, or to the loved one you have asked. Most estate legal problems and many expensive lawsuits are attributed to well meaning, but amateur, administrators.
The Trust -
There are a large variety of trusts, each designed to protect your legacy in different ways. We serve on simple and complex trusts; revocable and irrevocable, charitable, insurance and special needs. Jane and Marguerite are typically named in the Trust document as Successor Trustees. Often, Jane and Marguerite have been named in amendments to begin serving immediately as the Trustee of the Trust. You, as the Trustor, are usually also the Trustee of your trust and the primary beneficiary. Some trusts require a 3rd party administrator/Trustee in order to meet Probate Code and IRS guidelines and to avoid conflicts of interest. Please ask your attorney about details on these concepts. Our role in your Trust Document would be:
Successor Trustee(s), ie, "Jane B. Lorenz as Successor Trustee, and then if she cannot serve or resigns, Marguerite C. Lorenz as Successor Trustee and then if she cannot serve or resigns, Clay B. Spiegel."
Your Successor Trustee becomes the Trustee of your Trust when you resign, become incapacitated or pass away. Please consult your attorney as to specific language. This is just an example.
The Will -
Your "Last Will and Testament" is your written plan for your assets after your death. Often,a "Pour-Over" Will is used in conjunction with the Trust documents and instructs the Executor to put assets into the Trust if this was not accomplished before death. This document also lists who you select as guardian(s) for minor children. Our role in your Will would be:
Executor(s), ie, "Jane B. Lorenz as Executrix, and then if she cannot serve or resigns, Marguerite C. Lorenz will serve as Executrix and then if she cannot serve or resigns, then Clay B. Spiegel will serve as Executor."
This document is put into action only after death. Please consult your attorney as to specific language. This is just an example.
Whenever possible, we work with the attorney you selected to complete certain trust administration tasks such as, the "Notice to Heirs", receipts for distributions, court approval for accountings and various other tasks that support the Trustee/Executor. Please ask your attorney to contact us with questions.
The Power of Attorney for Finance -
Who will you name as your Agent or Attorney-in-Fact under this Power of Attorney? This document allows your agent to enter into contracts on your behalf, open or close accounts and many other transactions. This document only operates while you are living and can be effective immediately or "Spring" into action based on an event, like your incapacity. It is important to review this document and understand when your agent can begin to serve you.
We are named in this document when we are named in the Trust and Will:
"Jane B. Lorenz as Attorney-in-Fact, for the benefit of "Client Name", and then if she cannot serve or resigns, Marguerite C. Lorenz as Attorney-in-Fact and then if she cannot serve or resigns, Clay B. Spiegel as Attorney-in-Fact."
Please consult your attorney as to specific language. This is just an example.
The Advance Health Care Directive -
Who will you name as your Agent under this Power of Attorney for Health Care? This document allows your Agent to make medical decisions for you when you unable to make these decisions for yourself. Generally, your family members or close friends fulfill this important duty. Jane, Clay and Marguerite are often named as "Alternates" under this power. If you need as to serve as your Agent for Health Care Decisions, please talk to us about it. We are neutral and objective about your wishes.
Once this particular document is completed, a copy should be provided to the office of your primary care physician. You may have already signed a generic Directive at your Doctors office or at a hospital. We recommend that you work with your attorney on this as part of your overall Estate Plan. Discuss your wishes with your attorney in terms of where you would like to live (ie, assisted living or at home with care), what happens when your beneficiary is also your agent, when your Agent "takes over" and your preferences regarding funeral arrangements.
Please consult your attorney as to specific language and how your agent and trustee will work together on your behalf. This is just an example.
What happens next?
Your attorney drafts your documents. If you decide to name us in your documents, tell your attorney you want us named to serve you as your Successor Trustee, Executor, and Agent. Your attorney is always welcome to contact us with questions. Then ask your attorney to send us a complete copy of all your estate planning documents, after you have finalized and signed them.
Keep in mind that over the years, it is natural to make changes in your plan from time to time. The relationship with your Estate Planning Attorney is an important one and we suggest planning to see your Attorney every few years to adjust your documents to the changes in your life and to the changes in the law.
We would enjoy getting to know you and if you are in San Diego, we will meet with you at no charge at our office in La Jolla, our conference room in Rancho Bernardo or our office in Fallbrook. When the time comes, we implement your plan. Please arrange a phone appointment or meeting in person before finalizing your documents. We prefer that you know us and we know you before you name us. Contactus
We are professional fiduciaries. As such, we are named individually, as you have seen in the above descriptions. Once we receive your finalized documents, we will review them and ask any questions we might have. We encourage you to find and work with an attorney you are comfortable with. If you do not yet have an attorney to work with, please contact us for a referral. If you have an attorney, we are happy to get acquainted and answer your attorney's questions. Contact us
