Sacramento Estate Planning Blog

There are a variety of trusts that can be utilized to fulfill the needs of an estate planner. Previous posts here have discussed a number of options, including irrevocable trusts in general, charitable trusts and generation-skipping trusts. There is another option: a blind trust.

This type of trust allows trustees to possess full discretion in the handling of trust assets. The beneficiaries of the trust, as well as the trust's creator, have no knowledge about how those assets are handled. The trust's creator can terminate the trust, but he or she will receive no reports from the trust and its investments, if any.

Our readers who are familiar with the estate planning process know that there are many decisions that must be made. An individual must determine to whom assets will be left and what restrictions, if any, will be placed on the distribution of those assets. Even long-term care and powers of attorney may be important considerations during the estate planning process. Another important consideration, especially when creating a will, is who will serve as the will's executor.

The executor of a will has many duties. When looking at the broader picture, an executor assumes the legal responsibility of a deceased individual's financial affairs. The purpose of doing this is to wind down an estate. Therefore, an executor will be tasked with paying off debts, including outstanding bills and taxes, as well as distributing assets in accordance with the terms of a will. A will executor is also required to appear in court to inform a judge about the progress being made in winding down an estate.

The recent passing of former President, George H. W. Bush, has left many Californians heartbroken. One reason is because he appeared to suffer from what some call the "broken heart syndrome." This is because former President Bush passed away just a mere eight months after his wife Barbara Bush. As sad as these types of events can be, it can also be informative, especially when looking at estate planning. After all, many families find themselves in a position where a couple, or two parents, pass away in relatively quick succession.

So, how should assets be handled in these situations? It depends on the facts at hand. However, one option is for spouses to create a qualified disclaimer as part of their estate plan. A qualified disclaimer is a written and signed statement whereby an individual essentially refuses to accept any gift from another, including an inheritance. So, if one spouse passes away and leaves assets to his or her spouse, and that spouse has a qualified disclaimer, then the assets will not pass to the second spouse. Instead, they will proceed down the succession chain to the couple's children or other qualified beneficiaries.

Devising a will can either be relatively simple or it can be extraordinarily difficult depending on the circumstances at hand. This can include the number of assets and debts involved, the number of identified heirs and the complexities involved in the way that an individual intends to leave his or her estate via a will. Regardless of how in-depth a will needs to be though, an individual needs to ensure that it is crafted with clarity and thoroughness. Failing to do so could lead to a contested will.

A contested will can be costly to an estate and it can create an enormous amount of familial tension. Generally speaking, an individual named in a will or someone who would have received assets if the individual in question had passed away without a will can seek to contest a will. This usually means that close family members and named heirs can challenge a provision of a will, or even its entirety. Such a contest can threaten to undermine the way in which one's estate is passed down.