Grimaldi & Yeung

Why Your Will Needs to Change Again

Some people change their wills every time there’s a small family skirmish. However, most sign their wills and shove them in a drawer and try not to think about death. This is a mistake, for them and their families.

Even if your own life never changes, there are changes in the law and changes in the lives of the people around you that merit a review of your will and your estate plan every three or four years. If there are major changes in your family, like death, divorce, birth or marriage, you definitely need a review. However, if you don’t remember who you named as executor or who you want to make health care decisions on your behalf in a while, you need an estate plan review.

Forbes’ recent article, “Why You Should Change Your Will Now,” warns us that if you’ve taken the “one and done” approach to your estate plan, think again. In addition to the reasons already mentioned, your assets may have changed dramatically since you signed your will. The plan you put in place years ago, may not have considered new federal and state estate taxes. Now that you’ve accumulated significant wealth that will be passed on to your children, you might need to review your plans for that wealth for your children.

You may want to include grandchildren to help pay for their college education.

It is also not uncommon for parents to want to protect their children from themselves. This can be because of addiction issues or a lack of financial literacy. If that’s an issue, some parents elect to hold monies in trust for adult children, as a way to ensure that the funds will be there throughout the child’s lifetime.

A person’s estate plan should grow with them over time. An estate plan for a twenty-something may be very basic, but a newly-married couple will want to include provisions for their spouse. Parents need to think about providing for and protecting their children. Adult children have another set of concerns and you need prepare for the possibility of divorcing spouses, poor life choices, addiction issues and just poor money management. There are many stages in life when you may need to readjust the provisions for your children in your estate planning documents.

The first task is locating the will, while the second is making an appointment to meet with your estate planning attorney. There may be opportunities for tax savings that didn’t exist when the will was first created, or strategies that are no longer necessary.  The recent tax law changes have radically impacted estate plans.  The elaborate trust planning in older wills may no longer be needed and can unnecessary.  With the estate tax exemption rising to over $5 million in New York State, many people no longer need to design their planning to avoid taxes and can concentrate on other important family or legacy issues.

Contact our firm today to update your estate plan and redraft your will and trust.

Reference: Forbes (August 27, 2019) “Why You Should Change Your Will Now”

Why Should I Continue to Have Life Insurance After My Divorce?

If you have children and you purchased a life insurance policy to protect them, then you still need a life insurance policy. But you may want to make a few changes.

Life insurance needs to be addressed during the process of a divorce. If there are children, the beneficiary may continue to be the ex-spouse, if they are going to be the person raising the children if the key breadwinner dies. But there are alternatives.

Investopedia’s article, “How Life Insurance Works in a Divorce,” explains that addressing life insurance is a critical issue in the divorce process, especially for divorcing couples with children. Maintaining life insurance protects the financial interests of both parties and their dependent children. This involves making the necessary beneficiary changes, accounting for the cash value in whole or universal life policies, protecting child support and alimony income, and—most importantly—making certain that any children involved are financially protected.

Most married couples with life insurance list their spouse as the primary beneficiary. Life insurance protects a family from financial devastation, if you die and your income is lost. For a married person, naming your spouse as your beneficiary makes certain that he or she can continue to pay the mortgage, put food on the table and possibly bring up the children without your income. Life insurance is especially critical, if you provide the majority of the income.

In a divorce, especially an acrimonious one, odds are good that you’ll no longer want your ex-spouse profiting from your death. If there are no children are involved, most life insurance policies let you change the beneficiary at any time.

Some life insurance policies, such as many whole life and universal life policies, accumulate cash value over time. Each month when you make your premium payment, some of the money is deposited into a fund that grows with interest. This is the policy's cash value, and it’s your money. Any time while the policy is active, you can forgo the death benefit and take the cash value. This is called “cashing out” your life insurance policy.

Since the cash value from a life insurance policy is part of your net worth, you should list the policy, including its cash value, as a marital asset to be divided. Frequently, when marital assets are divided evenly, half the cash value from the policy goes to each spouse.

Protecting child support or alimony income is really important for the spouse who takes primary custody of the children after the divorce. These child support funds are for feeding and clothing the children and saving for college. If the noncustodial parent isn’t around anymore, this income goes away and it could put the custodial parent in a bind. If you have custody of the children, the best way to protect yourself from this situation, is to keep a life insurance policy on your ex-spouse with a benefit amount high enough to replace your child support or alimony income at least until the last child is 18. Being the custodial parent, if your ex is irresponsible or untrustworthy, you may just purchase the policy and pay the premium yourself, since coverage stops if payments lapse.

A life insurance policy becomes more important, if an ex-spouse is no longer involved with the children and if the custodial parent is the only source of income for the family. There should be a guardian named in your estate plan and another person named to handle finances on your children’s behalf. Estate planning and life insurance are both important to protect children, when there is a divorce.

Reference: Investopedia (June 25, 2019) “How Life Insurance Works in a Divorce”

Welcoming a New Member of the Family Means You Need an Estate Plan

Welcome to parenthood! Your baby is dependent upon you for everything. That includes naming a guardian to raise her, if something unexpected should happen to you.

The birth of a baby is a wonderful time in a family’s life. One task that isn’t usually at the forefront of new parents’ minds is estate planning, but it should be a priority. Young and healthy people with dependent children need to ensure that their offspring are protected, and that is what an estate plan does.

Motley Fool’s recent article, “If You're a New Parent, Take These 4 Estate Planning Steps” says there are a few key estate planning steps that every parent should take to make certain they've protected their child, no matter what the future holds.

1. Purchase Life Insurance. If a parent dies, life insurance will make sure there are funds available for the other spouse to keep providing for the children. If both parents die, life insurance can be used to raise the child or to fund the cost of college. For most parents, term life insurance is used because the premiums are affordable, and the coverage will be in effect long enough for your child to grow to an adult.
2. Draft a Will and Name a Guardian for your Children. For parents, the most important reason to make a will, is to name a guardian for your children. If you designate a guardian, you will select the person you think shares your values and who will do a good job raising your children. This way, it’s not left to a judge to make that selection. Do this as soon as your children are born.
3. Update Beneficiaries. Your will should say what happens to most of your assets, but you probably have some accounts with a designated beneficiary, like a 401(k), and IRA, or life insurance. When you have children, you'll need to update the beneficiaries on these accounts for your children to inherit these assets as secondary beneficiaries, so they will inherit them in the event of your and your spouse’s death.
4. Consider Creating a Trust. If you die prior to your children turning 18, they can't directly take control of any inheritance you leave for them. This means that a judge may need to appoint someone to manage assets that you leave to your child. Your child could also wind up inheriting a lot of money and property free and clear at age 18. To have more control, like who will manage assets, how your money and property should be used for your children and when your children should directly receive a transfer of wealth, ask your estate planning attorney about creating a trust. This trust could be included in drafting your Last Will and Testament or it could be a free standing Trust. With a trust, you can designate an individual who will manage money on behalf of your children and provide instructions for how the trustee can use the money to help care for your children, as they age. You can also create conditions on when your children could receive a direct transfer of assets. For example, delaying direct ownership of their inheritance until your children to reach age 21 or requiring them to use the money to cover college costs. Trusts are for anyone who wants more control over how their property will help their children, after they've passed away.

Take the time now to speak with an experienced estate planning attorney about your new family and your estate plan. You’ll feel better knowing that you have taken yet another step to protect yourself and your children.

Reference: Motley Fool (September 28, 2019) “If You're a New Parent, Take These 4 Estate Planning Steps”

Preparing for a Baby Includes an Estate Plan

Parents-to-be are busy with juggling doctor’s appointments, preparing a nursery, picking out names and getting ready for their lives to change. However, there’s more.

When expecting a new addition to the family, parents need to address the more serious aspects of this milestone. That means taking care of legal, financial and insurance matters to protect the family.

U.S. News & World Report’s recent article, “Financial Steps to Take When You're Pregnant” reminds us that pregnancy is a terrific time to review your financial life. It's a great time to assess your budget, emergency savings, estate planning documents and insurance needs to see if anything needs to be refreshed.

Here are a few things to do to prepare for a new baby:

Employee Benefits. Take a look at your employee benefits or have a conversation with HR to determine how much time you can take off and whether you'll be paid your salary, while on parental leave. This is important because many families are faced with higher living costs by the presence of a new baby, as well as taking parental leave that may cut their take-home pay. New parents may have to use the Family and Medical Leave Act (FMLA), which offers eligible employees 12 weeks of unpaid leave; or tap short-term disability insurance, which typically only replaces a portion of your salary. The amount you receive in short-term disability will also be impacted by whether you pay premiums with pretax or post-tax dollars. If you pay with pretax, your benefit will be subject to taxes, which will decrease the overall amount received.

While reviewing these policies, look at your health insurance and see whether prenatal visits and pediatric care are covered. You could be liable for health insurance premiums if you're taking leave from work. Remember that you'll need to add your baby to your medical insurance within 30 days of the birth.

Budget. Calculate new baby expenses, such as childcare.

Life Insurance. Determine if your current life insurance will meet your needs. If you need more, look at term life insurance. It’s usually affordable and expires after a set term, typically anywhere from 10 to 30 years. This policy payout would help a surviving parent or a guardian care for your child.

Estate Planning. Consider who would care for your child, if both parents were to die before he or she turns 18. Talk to family or close friends about who you'd like as guardian of the child. Talk to an estate planning attorney to update (or create) a will and guardianship choices. In addition, ask about formulating a plan for how inheritance, insurance, and other assets will be handled and disbursed, if you die while the child is a minor. A testamentary trust is a way to direct a future inheritance. You can designate your child as the beneficiary and a relative or close friend as the trustee. The trustee will help decide how the money is spent. This trust is usually included in the will and activates after the death of the person who created it.

Beneficiary Designations. Update any beneficiary designations on your retirement and insurance accounts.

529 College Savings Account. It’s hard to imagine how fast a newborn turns into a child packing for college, but it happens in the blink of an eye. Once the child is born, open and begin funding a 529 college savings account, and encourage grandparents to make contributions as well.

Reference: U.S. News & World Report (August 29, 2019) “Financial Steps to Take When You're Pregnant”

What You Need to Know About Inheritances and Taxes

Don’t spend it all at once: no matter how big or small your inheritance is, learn about the tax consequences, before you begin enjoying or investing any funds.

Depending on what kind of asset you inherit, you may have no taxes, a whopping tax bill, or something in-between. If you inherit a retirement account like an IRA or a 401(k), you’ll want to be especially careful, says U.S. News & World Report in the article, “Tax-Savvy Ways to Manage an Inheritance.” Making a mistake with these accounts could consume a huge amount of your inheritance.

IRAs or 401(k)s. If a deceased relative, spouse, or friend passes along an IRA or employer retirement savings account, you should understand how it will be taxed. The options for the account are based on your relationship to the deceased person. A spouse may be able to roll the funds into their own account. That’s an option that other beneficiaries don't have. A spouse can also open an Inherited or Beneficiary IRA account. This account has both partners' names on it. This is useful for a younger spouse who needs ready access to funds, avoid with the 10% early withdrawal penalty.

Other heirs of the benefactor, such as a child, nephew, niece, or grandchild, do not have the option to deposit the money in their own retirement account. However, they can hold it in seperate Inherited IRA account. The rate at which spouses and other heirs decide to withdraw the funds can have significant tax implications. If they decide to take out all the money in a lump sum, they may experience a tax bill. The substantual lump sum would be treated as taxable income in the year received. Beneficiaries could pay roughly 40% in taxes if they live in a state that also charges income tax. This large distribution also could push them into a higher tax bracket, causing them to pay more taxes on their other income.

The better move for heirs is to spread out the distributions over their lifetime. This is often called a "stretch IRA," because it allows investors to stretch out the time during which earnings can grow.

The specific rules regarding how beneficiaries manage Inherited IRAs are determined by whether the deceased person was older than 70½ at the time of death. Generally, heirs who want to keep their tax bill as low possible, must take required minimum distributions (RMDs), based on their life expectancy, within about a year of inheriting the account. They won't see the 10% early withdrawal penalty, but they'll be taxed on the amount they take out. However, the RMDs will generally be smaller than a lump sum and less apt to push them into a higher tax bracket. Recipients who want to take minimum distributions, must take the first one before the required date, or they may be forced to liquidate the account within five years.

Inherited Roth IRAs have already been taxed and don’t have the same tax burden. However, that’s not a good reason to immediately withdraw a lump sum. As long as you take RMDs, IRA funds can stay in the account and grow tax-free.

Stocks or Mutual Funds. An inheritance may also consist of investments outside of a retirement account, like individual stocks or mutual funds. Remember the "step-up basis," which is important to reduce taxes on the sale of these investments. When the owner dies, regardless what they paid for that stock or mutual fund, the cost basis “steps up” to whatever the price of that stock or fund was at the date of death. For example, if a grandfather bought IBM stock for $5 per share, and when he dies, it's worth $100. The heir's basis is the stock’s value when he died, rather than the price at which he bought the stock years earlier. It’s a critical difference when it comes to how heirs calculate and pay capital gains taxes, upon the sale of an asset.

Remember that these assets may have to go through probate. Assets like mutual funds and houses that don’t have a beneficiary designated, may go through probate.

Real Estate. Similar to stocks and mutual funds, an inherited house enjoys a step-up basis. For tax purposes, the cost basis is what the market value was when the benefactor died. Try to have the home appraised immediately after the benefactor's death, to gain an understanding of what the basis is now. If it's not being passed along to a spouse, an inherited house will usually need to go through probate.

Life Insurance. Life insurance is tax-free, but you still need to do good financial planning when deciding how to invest the life insurance payout.

Cold, Hard Cash. While a cash inheritance is not taxable from a federal tax standpoint, there may be state tax implications, depending upon the state where you reside.

Whatever the kind of asset you inherit, it would be wise to meet with our attorney to review the assets and determine what kind of a tax situation has been created by the inheritance, and start working on your estate plan. You may now have assets that you need to protect, and that’s best done through an estate plan.

Reference: U.S. News & World Report (October 18, 2018) “Tax-Savvy Ways to Manage an Inheritance”

 

Dividing Heirlooms Among Family Members

When it comes to distributing your assets, investment accounts are easily divided.  However, tangible assets, especially those with sentimental value, can become emotional lightning rods for families.

Boomers are today confronting their own mortality, and that includes preparing to transfer their wealth to children and grandchildren. According to an article in Kiplinger, “Estate Planning Answers for 'Hard' Assets Like Art, Heirlooms,” this will be one of the largest transfers of wealth in U.S. history.

It’s pretty straightforward to pass along liquid assets like stocks, bonds and cash. However, “hard” assets like property, art and jewelry can present some problems. The reason for this is that families don’t maintain a good inventory of these assets, the value of the assets may be outdated or unknown, and family members may have different ideas of how to handle them. Many individuals are also reticent to discuss the issue with their heirs.

Because of this, hard assets can be totally overlooked, despite discussions about their potential value. Similar to liquid assets, illiquid assets must have a formal plan that starts with a dialog between the family decision-makers, your estate planning attorneys and an appraiser. To get the illiquid assets distribution discussion going, consider these three key questions:

What’s it worth? Begin with its fair market value, which is the first step for any plan. That’s because it attaches an actual, current dollar figure to an item that has probably changed in value over time.

When getting an appraisal for an asset, look for an experienced, certified appraiser—especially for artwork. The reason is that there’s a big financial risk of mispricing your assets. Don’t rely on online art price guides, advice from your brother who used to be a painter, or even the original seller (who may have a conflict of interest). The appraiser should be certified by one of the main accrediting bodies, like The Appraisers Association of America or the International Society of Appraisers. For a large collection, the cost of the appraisal is well worth it, so you will know its true value and how that value will impact your estate.

Which heir(s) want it? Along with the actual monetary value, consider the emotional or sentimental value of your hard assets. Your children may have strong attachments to specific assets. This should be taken into account.

If several heirs want the same asset, look at whether and how it can be divided. If it can’t be divided equally, think about how you can equitably divide other assets. If some, but not all, of your heirs want to keep the asset, look into an equitable buyout situation that transfers ownership to the heirs who’d like to keep it.

How do I pass it on? There are several ways to pass on illiquid assets. Typically, it’s best to let an heir inherit the asset itself. Illiquid assets get a step-up in cost basis that reduces or eliminates the capital gains tax, even if the heirs decide to sell it. You can also place the asset in a trust, family partnership, or LLC and formalize the transfer of ownership in a tax-efficient way, at the same time saving on future estate taxes. Finally, if you don’t think your heirs understand the asset enough to sell it for a fair price, you can sell it yourself, or authorize your executor to sell it at your death, or pay the appropriate taxes and distribute the sale proceeds in your estate plan.

Having this conversation may be as difficult as the one about your estate plan and wishes for your funeral. However, it is just as necessary. Consider it an opportunity to teach your children, even if they are adults.

Reference: Kiplinger (November 5, 2018) “Estate Planning Answers for 'Hard' Assets Like Art, Heirlooms”

Comedian Tim Conway’s Incapacity and Family Squabble Provides a Lesson

Few performers could match Tim Conway for making fellow actors break character and dissolve into giggles, as he did on The Carol Burnett Show in the 1970s. His ad-libs were enough to send everyone on stage and in the audience into uncontrollable laughter.

However, as funny as Conway was on screen, the last few years of his life were tragic. He was incapacitated by dementia, and the family fought over who had the right to make his healthcare decisions. A daughter from his first marriage and his second wife went at it in Los Angeles probate court for his conservatorship, as detailed in a recent article from Kiplinger, “Choose Agents for Power of Attorney, Health Care Proxy Carefully.”

Conway’s case illustrates that as more adults age with blended families in charge of their care, family disputes over decision-making authority are increasing. A person’s second spouse may be listed as health care proxy or the agent under the power of attorney. However, that doesn’t mean the adult children from the first marriage—who may have hard feelings—won’t start a legal challenge.  Siblings with different opinions on the costs and quality of care also may want to find a way to take control. This may result in a judge appointing a guardian or revoking a relative’s authority. This can only mean more resentment and more legal bills.

Families can avoid the time and expense of litigation, by attempting mediation of the problem before going to court. A geriatric care manager or a social worker, in combination with a trained mediator, often an attorney, can assess a loved one’s care needs and offer a professional opinion to assist a family looking for a solution. There are also other strategies you can try to avoid a fight.

To begin with, choose carefully when you give a person decision-making power over your finances and your health. It’s best to select a person who’ll try to get you the best care possible and not worry about their inheritance. A child with financial problems might not be the right choice for your financial power of attorney. For seniors living alone, there are of care-management individuals  that will act as agents for a fee. However, make certain that you understand the fees and costs involved.

Once you’ve designated an individual as your health care proxy, have a conversation with them about why you selected them.  You should be specific about what type of care you want to receive.

You can also guard against a potential battle, by adding terms in your will that say if your children unsuccessfully challenge your choice of agent or health care proxy, they could have their inheritance eliminated or reduced.

Every few years, review the documents and confirm that they reflect your wishes. Make clear to family members what your wishes are, and if appropriate, why. If you know that your family relationships are not great, consider writing a letter to explain your decisions for assigning power of attorney and health care proxy choices. If you can leave your family intact, even when you have departed, that may be some comfort to all concerned.

Our firm can help you to conduct a meeting with your appointed agents and other family members.

Reference: Kiplinger (November 29, 2018) “Choose Agents for Power of Attorney, Health Care Proxy Carefully”

How a QTIP Protects Heirs in Blended Families

Lucky enough to find love the second time around? Wonderful. Want to protect your children’s inheritance? Here’s one estate planning option to address this concern.

Estate planning for couples in second marriages, when each spouse has children from a prior marriage, requires a few extra planning steps.

When each spouse dies, they may want his or her children to receive an inheritance with the remainder going to the surviving spouse.

In many states, a surviving spouse can choose to receive a portion of the other spouses’ estate by filing a petition in Probate Court, if they have not received an equitable share needed for their support. New York calls these shares a spousal elective share. It is $50,000 and a statutory portion of the estate, whichever is greater. The share ranges from 1/3 to 1/2.

Another strategy is using a QTIP or "Qualified Terminable Interest Property" in one’s testamentary plan found in their will or living trust.  This is a type of trust designed to preserve the marital deduction for estates that may be subject to estate tax. The federal estate tax exemption is $11.2 million per person in 2018. In addition to federal estate tax laws subject to change down the road, some states also have their own state estate tax.

People in second marriages very frequently want to provide for their spouses when they die. However, they also want to be certain that their own children are able to inherit the remaining assets after the death of the second spouse. This can be done by creating a marital trust for the benefit of the surviving spouse with the remaining assets in the trust going to their children after the second spouse dies. A QTIP may not accomplish the objective of an immediate inheritance for children.  Our firm, Grimaldi & Yeung, can explore your specific family situation and determine if a QTIP or other trust would be favorable for you.

Another option to discuss is a postnuptial agreement, where the surviving spouse waives his rights to an elective share or executes wills or trusts that designate assets to children at their death. We can also craft your estate planning documents, so an amount equal to one-third of the augmented estate will go outright to the surviving spouse and have the balance distributed to the children. Finally, spouses may choose to designate their children as beneficiaries on IRAs and insurance policies, instead of the surviving spouse.

There are more than a few ways to make estate planning work in an equitable fashion for everyone in the new blended family. Grimaldi & Yeung LCP is ready to help you create the plan that will work best for your unique situation.

Reference: nj.com (October 10, 2018) “Second marriage? How to make sure your children get an inheritance”

Elder Abuse Case Claims Caregiver Manipulated Elderly Father

An unlikely marriage between a caregiver, who had already been married five times, to an aging man, resulted in claims of abuse and a lawsuit against the caregiver.

The family of James Donald Hess recently filed a petition in San Diego probate court accusing his former caregiver and new wife of abuse and undue influence. The family believes that not only did she marry him to get his money but that she is doing him physical harm to hasten his death.

ABC 10 News San Diego reports in its story, “Family questions elderly father's marriage to caregiver,” that Don Hess isn’t in the best health. The petition states that his "health steadily declined" after Don's second wife passed away in February 2016 and that he suffered from "depression and loneliness" and became dependent on in-home caregivers.

The family claims that a caregiver named Nicky convinced Hess to marry her after just a few months. Hess and Nicky Shepard—now Nicky Hess—were married in October 2017. Hess was 86-years-old. Nicky was 64. Don’s daughter told the TV station that when Nicky met her dad, she was married.  However, she was a newlywed. Two weeks after her divorce was final, she married her father.

The investigation discovered that Nicky had been divorced at least five times. The family alleged Nicky convinced her new elderly husband to "withdraw large sums of money from his investment accounts" and that she "forged [his] name on documents," according to the petition.

The petition also states that Nicky placed his health "in extreme danger," by altering his medication. Don is now hospitalized, and the family said his heart stopped for several minutes. He has also suffered from renal failure and pneumonia.

The battle has the parties in probate court, where the judge acknowledged the difference of opinion regarding Mr. Hess's marriage.

"I know that you have very different views about whether this is on one hand, a recent marriage of an elderly person to his caregiver and the vulnerability that that can present and the possibility of financial abuse versus, on the other hand, a person who is engaging in his right in his older years to find love and get married," said Judge Julia Kelety.

The petition asked that Don be removed from the new trust made late last year. The children claim Don wasn’t competent at the time. The petition said the new trust all but disinherits his children in favor of Nicky.

The judge has temporarily suspended Nicky as successor trustee, until another court appearance.

This is hardly an isolated case. The National Council on Aging reports that approximately one in ten Americans over the age of 60 have experienced some type of elder abuse. Most cases go unreported, despite the enormous number of cases of fraud and abuse of seniors.

Reference: ABC 10 News San Diego (March 29, 2018) “Family questions elderly father's marriage to caregiver”

How a Trust Works as Part of Your Estate Plan

It’s clear that everyone needs to have a will, but the increasing use of trusts in estate planning have many people wondering how trusts fit into an estate plan.

If you learn anything about a celebrity’s wealth after they die, chances are it’s because they had a will and their estate went through probate and the will became a public document. One of the benefits of creating a trust, is that personal information about assets remains private. Estates that incorporate trusts are often settled more quickly than those without.

The New York Times recently published an article, “Life After Your Death? Here’s Why You Should Have a Trust” that explains that trusts have often been thought of a way for wealthy people to dispose of their assets.

However, some trusts can be useful for those who are not ultra wealthy. One of those is a revocable trust, which can be changed during a person’s lifetime. A properly funded revocable trust can avoid the need for probate after death.

If assets that have been titled in one name, are retitled in the name of the trust, the payment of any bills will continue without interruption in the individual’s lifetime. This can work in any situation, where financial support is given to family members.

Unlike an irrevocable trust, where assets are dispersed with more permanency, a revocable trust can be changed during the holder’s lifetime, if she decides to handle her assets differently.

If that person’s financial situation changes or if she believes that she’s made a mistake, she can close the trust and void the arrangement.

The trust is similar to a will but is more private.  It isn’t subject to outside review or approval. A will may need court approval, and every state has its own probate laws.

Think carefully before deciding who you would like to serve as a trustee. They’ll need to be a person who has knowledge about finances and is responsible enough to be trusted with the task. Remember that revocable trusts are really used for planning while you are alive, so it also needs to be someone you know you work well with.

Reference: The New York Times (March 22, 2018) “Life After Your Death? Here’s Why You Should Have a Trust”