This FAQ is designed to answer questions around completing an estate plan. You can also email us at support@estateguru.com.
What is the Definition of a Legal Residence
A legal residence is the residence where you have your permanent home or principal establishment and to where, whenever you are absent, you intend to return; every person is compelled to have one and only one legal residence at a time. Note: In some states, this is referred to as a legal domicile, instead of residence.
What happens if there is already a Trust in Place?
If you already have a current trust in place, when asked if there is an existing trust, you should answer Yes. The portal will ask a series of questions about your existing trust as part of the trust questionnaire. The attorney will then make a recommendation as the the best way to bring the documents up to date.
Can more than one person act as a successor trustee at the same time?
The successor trustee takes over management of the trust when the trustee has become incapacitated or has died. Add the first successor trustee, then determine if you would like to add another one to act if the first one is unable to serve. We recommend having at least two successor trustees named. When two successor trustees are added, you will need to indicate if you want them to serve alone in the order listed, or together as co-trustees. Co-trustees can complicate matters, if co-trustees are chosen consider their relationship and if they will work well together.
The estate planning portal allows you to add up to 4 total successor trustees. When more than two are added, they serve in the order listed.
Disinherited
Any person can be disinherited, ex-spouses are automatically listed in the disinherited section.
What is included in personal property?
Personal property refers to tangible items like furniture, jewelry, cars, clothes, family keepsakes/heirlooms, appliances, etc.
Specific Bequests
Specific bequests are typically expressed as cash amount or an asset of monetary or sentimental value such as an investment account, piece of real estate, or a piece of art.
Beneficiaries for the balance of the assets
These are the people or entities you want to inherit your financial and real estate assets (minus any Specific Bequests).
Separate Assets
If either or each spouse has separate assets owned only by them and not jointly with their spouse, each spouse will have the opportunity to indicate who is to receive their separate assets.
Pet Provisions
You can select one or more person(s) to be responsible for the care of a pet after your death. If utilized, you can also earmark a specific amount of money for the care of your pet(s), if desired.
Ultimate Beneficiaries
This is sometimes referred to as the 'catastrophic clause.' In the unlikely event that all the beneficiaries named in the document (both primary and alternate), as well as their descendants, predecease the Grantor(s), they can select a Final or Ultimate Beneficiary. It is an extremely unlikely scenario that the persons/entities named as Ultimate Beneficiaries would inherit anything.
Age-Based Distributions
Unless the trust dictates otherwise, upon reaching age 18, beneficiaries will receive their entire inheritance in a lump sum. Alternatively, you can continue to hold their assets in trust with delayed distributions over time as your beneficiaries mature. This option allows you to select up to three (3) different ages and the percentage to be distributed at each age. The last age listed will also become the minimum age at which the beneficiary may become the Trustee of the their own Sub-trust if applicable.
Sub-Trusts
Adding this optional provision allows for the creation of separate trusts for the benefit of each primary beneficiary upon the death of the last Grantor. Using this provision shows the intent of the beneficiary to keep these assets as their sole and separate property and does not commingle the assets with a spouse.
While all inheritance is received as the beneficiary’s sole and separate property, putting a person’s inheritance into a sub-trust rather than giving it to them directly can add separation or a level of protection from inadvertently commingling an inheritance with marital property. This is often used when parents are concerned about their children commingling their inheritance with their marital property, or about the future of the child’s marriage.
Our tool allows you to combine this with the Age-Based Distributions by designating that at the oldest age, the beneficiary can become trustee of their own inheritance.
Debt Forgiveness
If one of the beneficiaries owes money to you, as the Grantor of your trust, you have the option of subtracting the amount from the amount that beneficiary will inherit, or forgiving the debt when you pass away and the beneficiary receives their full share of the estate.
Behavior-Based Distributions
Assets can also be held in trust until certain behavioral conditions are met. You can choose one or more of the following behaviors:
- Drug addiction free
- Alcohol addiction free
- Gambling addiction free
There is specific language in the trust that addresses how compliance to these conditions is to be evaluated so that the Successor Trustee can enforce these provisions.
Can I Update my Trust if Circumstances Change?
Yes, and we encourage it. You do not have to come up with a way to cover every possible future event the first time you establish your trust. You can amend your trust as often as you wish. Your estate plan can be changed/updated as your life changes with future life events. Major events that may necessitate a change to your Trust documents in the future could include:
- Marriage
- Divorce
- Birth or adoption of a child
- Death of a beneficiary
- Change or add a beneficiary
- Change the trustee or successor trustee
- Change the way your property/assets are distributed
- Change which property/assets are part of the trust
- Changes to the names of people included in your trust
- Acquiring new property/assets that you want to add to the trust
- Moving to another state where the inheritance laws are different
You can amend an estate plan trust online for typically much less than a standard attorney charges.
What if I already have a trust, but it is old and things have changed?
The answer depends on a couple of things: 1) the age of the trust and 2) the amount of changes or amendments it needs to reflect your current wishes. The most cost effective option may be to have the original attorney review and amend the trust as needed. If that is not possible or is not very cost effective due to the attorney's fees, the next best option may be to restate your existing trust as a new trust document in our online portal that encompasses all of your current wishes and make any updates needed. Typically, to have an attorney review a trust done by someone else is more expensive than doing a new trust with our estate planning portal. If fact, about 20% of the trusts we do are this exact scenario.