by Matthew Crider | Dec 4, 2020
Does the person I name in my power of attorney take care of my estate when I die?
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Hi, I’m Matthew Crider. And a question I get a lot of, is whether the person that you name as your agent in a power of attorney will take care of and control and manage your property when you pass away? And the answer to this is, no. The power of attorney is only effective if you’re incapacitated. And the person that you name in the power of attorney will only have control over your property while you’re incapacitated.
The person who controls your property when you pass away is either the executor under a will or a trustee under a revocable living trust. So when you pass away, the power of attorney is no longer effective, and the person who is in control of your property is either the trustee under a trust, or the executor under a will.
I’m Matthew Crider, and thank you for watching.
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by Matthew Crider | Jan 11, 2019
Health Care Documents in Estate Planning
by Matthew Crider | Dec 3, 2018
Estate Planning Signing Meeting
Transcript:
Hi. This is Matthew Crider. Well, we just had our design meeting, and the next step is to have the signing meeting where you actually sign your estate planning documents.
I want to talk to you about what happens between now and the signing meeting, and then what happens at the signing meeting. What happens now is that we get to work in creating all of the documents that will comprise your estate plan. We’re going to begin drafting the trust, if there is one, the healthcare directive, the power of attorney, and so on.
Once we’ve prepared those documents, we’ll send drafts to you so that you have the opportunity to review them, and if you have any changes or any different thoughts from what we talked about during the design meeting, you could let us know either by email or give us a call. We’ll begin preparing the documents for the signing meeting and for your review.
At the signing meeting, we’ll go over the documents in the estate planning binder, which we’ll put all the documents in an estate planning binder for you. We’re going to go over everything and hit the high points so that your estate reflects what you want.
After we do that, of course, we’re going to answer any questions that you have, explain things to you if you have any questions, and then we start signing. You’ll need to bring a valid form of state or federal ID, or your driver’s license to that meeting. The reason for that is a lot of the signatures have to be signed in front of a notary.
After we sign the documents, you’re done creating your estate plan. We’ll have one more meeting after the signing meeting, and I’m going to talk about that in the next video. Again, this is Matthew Crider, and thank you for watching.
by Matthew Crider | Jun 12, 2018
TRANSCRIPT
Hi I’m Matthew Crider
One question I get a lot is “who should I pick as my successor trustee?”
A little background is in order. A trust is a legal relationship where a trustee holds legal title to property for another person, called a “beneficiary.” The trust document will name the trustee.
There are several different types of trusts. The simplest one is a revocable living trust. In this type of trust, usually the person who creates the trust is the trustee during his or her lifetime. Then, when the person who creates the trust dies, another person takes over as trustee. This trustee – known as the successor trustee – is named in the original trust document.
If you create a trust, you will need a separate person or institution, called a “trustee,” to manage the trust either now or in the future. Choosing the right trustee is crucial to making sure your wishes are carried out. The choice is important because being a trustee can be a difficult job. The trustee’s duties include making proper investments, paying bills, keeping accounts, and preparing tax returns. Bottom line, the trustee is supposed to follow the terms of the trust, for the benefit of the trust beneficiaries.
The law isn’t very strict about who may serve as your successor trustee. As long as the person is legally competent, meaning he or she is over 18 years of age and is capable of managing his or her own affairs, that person can be trustee. The trustee has a duty to manage the trust for the benefit of the beneficiary.
Time and again, I’ve seen people pick someone for the role of successor trustee who shouldn’t be the trustee. When this person – the successor trustee – takes over management and control of the trust assets, bad things can happen: For example, the trustee may mis-manage the trust property. The trustee may use the trust assets for his or her own benefit. And so on.
So how do you chose the right person as successor trustee?
First, the main consideration when selecting a trustee is picking someone who is trustworthy. You want someone who is going to follow your wishes as you’ve expressed them in the trust document.
Next, the trustee must have the ability to manage the trust. This means that the trustee is detail oriented.
Third The trustee does not need legal or financial expertise, but he or she must have good judgment.
If you don’t know anyone who meets these qualifications, you can look into hiring an independent trustee. This can be an individual or an institution who has some financial knowledge: Some examples include: a bank or trust company, a professional trustee, an financial advisor, a CPA, or a lawyer.
Of all the cases I’ve worked on where the beneficiaries have sued the trustee for mismanagement, none have involved a professional trustee. That’s not to say it doesn’t happen; Just that, in my experience, it’s the family member trustee who mismanages the trust property, not the professional trustee.
Choosing the right person to serve as your trustee is an important decision. In fact, I suggest that it is THE most important decision you can make about your estate. More important than who gets what, and when they get it.
Spend some time thinking about who you want to serve as your successor trustee.
If you have any questions, I’m Matthew Crider, and I’m here for you. Thank you for watching.
by Matthew Crider | Jul 27, 2017
What is Wrong with Probate in California?
