Insights & Resources

In honor of National Estate Planning Awareness Month, Garfunkel Wild, P.C. wants to remind you of the importance of creating and maintaining an estate plan.  Below we provide an overview of the Revocable Trust, an essential part of any estate plan.
 

• Revocable Trusts Simplify Estate Administration.  Just like a Will, a Revocable Trust (sometimes called a “Living Trust”) is a document that directs how your assets will pass upon your death.  You retain access and control over assets in the Revocable Trust during your lifetime, and can amend or revoke your Revocable Trust at any time.  You can transfer assets to your Revocable Trust during your lifetime so that, upon your death, your Trustee can access the assets right away and distribute them according to your wishes.  Unlike a Will, the Revocable Trust can be administered upon your death without the need for a probate proceeding in court, which can take months and costs legal and court fees.  A Revocable Trust also eliminates the need for additional court filings for the administration of any continuing trusts created for a beneficiary, resulting in an immense saving of time and expenses.  We recommend a Revocable Trust for almost every client for these reasons. 

 

• Use a “Pour-Over” Will in Addition to a Revocable Trust.  When you create a Revocable Trust, you should still have a simple “pour-over” Will which directs any assets passing through your estate to your Revocable Trust, just in case you still have assets in your name that will not pass by beneficiary designation or joint ownership.  A Will ensures that those assets are distributed as you wish when you pass away. Without a Will, state law dictates how those assets are distributed and who is entitled to be your appointed Executor, which may not be in line with your wishes. 

 

• Coordinate Account Titling and Beneficiary Designations with Your Plan.  It is important to keep in mind that certain accounts have beneficiary designations or are governed by “right of survivorship” rules, which will trump what is stated in your Will.  These assets will pass directly to the named beneficiaries or joint owner regardless of what your Will says.  A Will only governs assets in your individual name with no beneficiary designation.  For that reason, it is important to make sure that all of your accounts are properly titled and your beneficiary designations are in order.

 

• Designate Trusted Fiduciaries to Administer Your Plan.  As part of your estate plan, you need to choose someone to act as Executor and Trustee, you need to choose a guardian for minor children, if any, and you need to decide how assets pass to your family, outright or in trust (for tax planning or other reasons to protect a beneficiary).

To discuss your estate plan or any questions you have concerning the above, please contact the authors listed above, the Garfunkel Wild attorney with whom you regularly work, or info@garfunkelwild.com.