Category: General Legal

Selecting Your Successor Trustee

When thinking about their Estate Planning, most clients carefully think about who should be a beneficiary of their Estate, what percentages each beneficiary should receive, whether there should be any strings attached to such inheritance, and what should happen if a particular beneficiary is pre-deceased.  These are all issues that should be carefully considered.  However, most clients do not give much thought to who should serve as their Successor Trustee.  This is an important role that should be carefully considered.

Your Successor Trustee has the responsibility of managing and distributing your assets in accordance with your wishes when you are no longer able to do so, either due to incapacity or death.  First, you want to make sure that the person you are considering is trustworthy and responsible.  Will that person follow your instructions?  Will the person take the time to make sure that he/she is doing everything correctly? 

Second, you want to make sure that the person you selected is competent.  There are often many complex decisions that must be made.  While it is true that your Successor Trustee may seek the guidance of an attorney, tax professionals, and even financial advisers, every decision is ultimately in the best judgment of your Successor Trustee.

Third, make sure that the person you selected is willing to act.  There is no rule that requires a person to act as Successor Trustee simply because you designated that person as such in your Estate Planning documents.  Having a personal and candid conversation with that person will not only assure you that the person is willing to act, but will also affirm that you have made the right selection.

A qualified Estate Planning attorney can guide you through the very important process of selecting your Successor Trustee.

KRASA LAW is located at 704-D Forest Avenue, PG and Kyle can be reached at 831-621-7375.

Planning for Life

By Kyle A. Krasa, Esq.

Who Needs Estate Planning?

The other day I ran into an old family friend in a local drug store.  She had heard that I was an Estate Planning attorney and she said to me, “When I get an Estate, I’ll give you a call.”  This is a common reaction to the term, “Estate.”  The term conjures images of Bill Gates and Oprah Winfrey, large lawns and stately mansions.  The truth is that the term, “Estate,” is just a fancy word for all the assets you own such as your house, cars, bank accounts, retirement plans, and life insurance.  Everybody has an “Estate.”  Some “Estates” are worth billions of dollars while other “Estates” are only worth a few hundred dollars.  So, who needs “Estate Planning”?

Whether your Estate is large or small, everybody needs Estate Planning.  You want to be able to designate someone to manage your assets and make health care and personal care decisions for you if you ever become unable to do so for yourself.

You also want to be able to plan on who will receive your assets after your death and who should carry out those wishes for you after you pass away.  Depending on the size of your Estate, you may also want to plan on reducing or eliminating unnecessary taxes, such as the federal Estate Tax.

If you fail to plan ahead, a judge will simply appoint someone to handle your assets and personal care through a process known as Probate.  Contrary to popular myth, everything does not automatically go to the state if you die without a plan. Your relatives, no matter how remote, will likely inherit from you.  However, an estate plan gives you much greater control.

Regardless of the size of your Estate, there is an Estate Plan for everybody’s circumstances.

KRASA LAW is located at 704-D Forest Ave., PG and Kyle can be reached at 831-621-7375.