What to do When a Loved One Dies

What to do When a Loved One Dies

Brett S. Lytle 2 © 2013 Mc. Dowall Cotter

Robert D. Vale 3 © 2013 Mc. Dowall Cotter

What is a Trust? n Components n n n § Trustmaker; Trustor; Settlor Trustees; Money Managers Beneficiaries Corpus; Our Stuff (assets) § Your Trust § Provides for your disability n n 4 Provides for your loved ones Contains your instructions It’s private and confidential Reflects your hopes, dreams and values © 2013 Mc. Dowall Cotter

Life Cycle Alive and well n Alive and not so well n Upon my death n 5 © 2013 Mc. Dowall Cotter

Alive and Well § Trust is transparent § Tax id number is your social security number § “You are the Trust” § You can do anything you want with your stuff (assets) 6 © 2013 Mc. Dowall Cotter

Alive and Well n SUMMARY • TRUSTEE SELECTION – Have you nominated the Trustees you want to have oversee your estate? • BENEFICIARIES – Are you comfortable with the distribution plan for your estate? • Beneficiaries identified? • Is distribution to beneficiaries in trust or outright? • ORGANIZATION - funding; get the assets in the bucket and make sure your estate plan is up to date • RELATIONSHIPS – establish and maintain relationships with your trusted advisors • CONNECT THE DOTS - Make sure your Successor Trustees are familiar with your other trusted advisors 7 © 2013 Mc. Dowall Cotter

Alive and not so Well § Disability planning • When are you disabled? • Who says you are disabled? § Role of Successor Trustee • How does the Successor Trustee take control? • Role of agent under Power of Attorney • Role of agent under Advance Health Care Directive 8 © 2013 Mc. Dowall Cotter

Alive and not so Well § Ensure quality care in a health environment § Carry out wishes and best interests of the incapacitated trustmaker (you) § Look for other guidelines in the Trust 9 © 2013 Mc. Dowall Cotter

Alive and not so Well § Locate important documents § Determine medical and other coverages and § apply for benefits Consult with your Team of Advisors • • • 10 Tax Advisor Financial Advisor Beneficiaries Trusted Advisors and Friends Healthcare Advisors Attorney © 2013 Mc. Dowall Cotter

Alive and not so Well n SUCCESSOR TRUSTEE WILL: • • 11 Establish and use a recordkeeping system Inventory assets Account for income and expenses Make insurance claims Account and pay medical costs See to Income Tax preparation Be an advocate for the Trustmaker © 2013 Mc. Dowall Cotter

Alive and not so Well n SUMMARY (ORGANIZATION IS KEY) • Proper funding • Identify trusted advisors; confirm they are ready to assist if and when the time comes • Good record-keeping = Good Successor Trustee 12 © 2013 Mc. Dowall Cotter

Left the Planet n Immediate Steps after Death of Trustmaker • Complete funeral arrangements • Locate important documents • Do not immediately accept benefits! • Successor Trustee must consult with Trusted Team of Advisors 13 © 2013 Mc. Dowall Cotter

Left the Planet n Administration of Trust after Death • Establish accounting system • Pay final expenses and bills • Pay taxes - Income and Estate • Prepare final accounting • Distribute Assets • Personal property • Outright • In Lifetime Trusts 14 © 2013 Mc. Dowall Cotter

Left the Planet n n Manage the Distribution of Assets Use of Lifetime Trusts • • Creditor Protection Predator Protection Self Protection Estate Tax Protection § Types of Lifetime Trusts • • 15 Common Trust Special Needs Trust General Needs Trust Convenience Trust © 2013 Mc. Dowall Cotter

Left the Planet n SUMMARY • • • Accurate accounting (proper record keeping) Follow Trust terms (what if unclear? ) Comply with all State & Federal laws Fair dealing with the beneficiaries; no self-dealing Comply with tax requirements Prudent investor: segregate, preserve and prudently invest trust assets • Distribute assets 16 © 2013 Mc. Dowall Cotter

Left the Planet n Summary of Must Do’s • • 17 Make sure you have engaged the trusted advisors Notify beneficiaries and heirs, as required by law Notify Dept. of Health Services, as required by law Notify the County Assessor of death of property owner © 2013 Mc. Dowall Cotter

Left the Planet n Summary of Must Do’s • Pay income taxes – • Final tax return for deceased Trustmaker • Tax returns for Trust Estate • Pay estate tax, if due • Keep and render a full and accurate record and accounting of trusteeship • Remember, as a Successor Trustee, you have a fiduciary duty to the beneficiaries • There is no higher duty recognized in law 18 © 2013 Mc. Dowall Cotter

Successful Planning n Necessary Basic Components of a Successful Estate Plan § § § 19 Revocable Living Trust Will Advance Health Care Directive Financial Power of Attorney Your Team of Trusted Advisors © 2013 Mc. Dowall Cotter

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