Talk to an experienced estate planning lawyer
Another type of trust used in estate planning are testamentary trusts. Unlike living trusts, which can be created while a person is still living, a testamentary trust is not created until after someone dies. Hongo Law Office, LLLC can help you determine if a testamentary trust is right for your situation and guide you through the process of creating one.
Estate planning attorney Yuka Hongo has lived and worked in Japan and the United States. Her experience, legal knowledge, bilingual skills and understanding of both cultures have helped many clients overcome the barriers they face when dealing with issues related to estate planning to make the process easier.
Protecting assets for family members
A testamentary trust is one that is established in accordance with instructions in a last will and testament. The will appoints a trustee to manage the assets of the person who has died. It also names beneficiaries of the trust. Beneficiaries in these types of trusts are often young children or relatives who have a disability.
The personal representative overseeing probate of the estate creates the trust. Then the trustee manages the trust until it expires, which is explained in the will. The expiration date may be tied to a specific age or event. For example, the trust may expire when a beneficiary reaches the age of 25 or graduates college.
There are several advantages to using a testamentary trust. It protects the deceased person’s assets even after death. It may be funded with life insurance proceeds if the beneficiary is also listed as a beneficiary on the deceased person’s policy.
There are certain disadvantages, too. The trustee is charged with overseeing the trust until it expires, a responsibility that may last for many years. The trustee must also regularly check in with the probate court to ensure the trust is being managed properly, which can result in further court costs.
The grantor (creator of the will) can name anyone to be trustee of a testamentary trust, but that person is under no obligation to accept. If the person named by the grantor is unwilling or unable to accept the responsibility, a court can appoint a trustee.
Start preparing for the future today
Trusts can play a very important role in estate planning. They give you more control over your assets as you prepare for the future. Determining the type of trust that is right for you and setting it up properly can be complicated. That’s why it’s important to talk to an experienced estate planning attorney.
Attorney Hongo can go over the different types of trusts that are available and can go over the advantages and disadvantages of each option. She can help you prepare a comprehensive estate plan that protects your assets and makes things less stressful for your family if anything should happen.
Learn more about how we can help. Attorney Hongo can meet with you to review your situation, go over your options and create an effective and appropriate estate plan. Contact us to schedule a consultation at time that is convenient for you.