Single Adult? Why You Need Estate Planning

If you aren’t married, you may think an estate plan is unnecessary. To the contrary, estate planning is a responsible way to make sure that those you love, who have already suffered your loss, are less encumbered with other issues due to your passing, regardless of your marital status, age or economic bracket.

Here are Q&As addressing some of the most common concerns:

Q. Overall, why does a single person need estate planning?

When you take the time to create a thorough estate plan, your loved ones will avoid probate, and therefore be spared attorney’s fees and court fees. A trustee in charge of your living trust will oversee all of your last wishes, instead of leaving a judge to distribute your property through probate.

Most adults accumulate assets as they age (including cash, retirement plan, investments, personal property, real estate, etc.). Who will get those assets when you die? And who will take care of your funeral arrangements?

Q. What if I have minimal assets?

Even if you don’t own much, if you were to die without an estate plan your property could go through the probate process and potentially be awarded to a beneficiary you never would have chosen.

Q. What happens if I’m disabled or have an end-of-life situation?

Estate planning also involves planning for the possibility of incapacity or disability. By creating an advance health care directive, you can let your physicians and family members know how you would like to be treated in medical situations when you cannot necessarily make the decisions for yourself.

Q. Who will manage my finances if I cannot?

A general power of attorney allows the person you appoint to act on your behalf and is often included in an estate plan to ensure that someone is present to handle your financial matters. This may mean handling your insurance, business transactions, settling claims, and/or employing professional assistance.

Q. Do I need a will or a living trust, or both?

A will is a legal document detailing an individual wishes after they die. A living or revocable trust does not require going through probate; if your assets are properly titled, they would pass directly to your spouse upon incapacity or death, without the need for any court intervention. As for a will, your attorney can advise whether to include both it and a living trust in your estate plan, which can allow you to take advantage of each tool’s benefits. The use of a living trust is less clear-cut, so discuss the pros/cons and your specific situation with your attorney.

Q. How does estate planning help my heirs with taxes and expenses?

With proper estate planning, it can help minimize taxes and expenses associated with transferring your assets after your death, avoiding the costly probate process.

Q. What if I have children?

Take the time to think about who will willingly take on the roles and responsibility of raising your children in your absence. A guardian has the responsibility to protect the physical and emotional interests of your children. A trustee has the responsibility of protecting the assets within the trust that you created.

Q. How can I ensure that my pet is cared for?

While you cannot leave money to pets, you can still ensure they are properly cared for with estate planning, such as leaving your pet to someone in your will or setting up a pet trust, which ensures money is specifically designated for pet care.

Q. What if I want to leave assets to charities?

A charitable trust is an option which allows you to direct your assets toward philanthropic causes while reaping potential tax benefits.

Q. What if I want to take care of my grandchildren?

See our article “Taking Care of Grandchildren through Your Estate” which discusses a range of issues that can help you.

Specialized Estate Planning for Single Adults

Taking the time and effort to create an estate plan is one of the most thoughtful steps you can take for your family and loved ones. Meet with the skilled estate planning attorneys at Mortensen & Reinheimer, PC to discuss your needs and concerns. Please contact Mortensen & Reinheimer, PC at (714) 384-6053 to make an appointment, or use our online contact form. Our website is http://www.ocestateplanning.net.

About the author:
Tamsen R. Reinheimer, Attorney, is a Certified Specialist in Estate Planning, Trust & Probate Law (The State Bar of California Board of Legal Specialization). She has significant experience in all aspects of estate planning, trust administration, and probate. Contact Tamsen at tamsen@ocestateplanning.net.

Shady Documentation? Key Signs for Trust Litigation

Typically, beneficiaries approach the administration of a trust with optimism and belief that the trustee will fairly and adequately perform required duties. Unfortunately, that doesn’t always happen. Questions may regarding what were the trustor’s wishes and desires (the person who created the trust), as opposed to the trustee’s supplanted wishes and desires. To that end, a trustee may manipulate documents or refuse to provide documents, which if uncovered, would serve to prove malfeasance.

Do you have suspicions that documents provided by the trustee are untrustworthy? Are some documents missing or possibly altered? If confirmed, such actions are likely due to a “breach of trust” violation.

In a previous article, “Breach of Fiduciary Duty,” we discussed key duties of a trustee, such as loyalty, no self-dealing, impartiality, disclosure, etc. A trustee “is required to act in the highest good faith towards his/her beneficiary and may not obtain any advantage by the slightest misrepresentation. Concealment, threat, or adverse pressure of any kind is unlawful as long as the fiduciary relationship exists,” and any violation of these duties constitutes a wrong against the beneficiaries.

Examples of Shady Documentation

Below is a short list of shady documentation “red flags” (click here for the complete article, including “real world examples”). Recognizing these signs might help you to determine whether to seek legal counsel to protect your interests. Typically, these examples involve a family member or friend trustee, as opposed to a private professional.

Do you suspect destruction of trust documents?

Are there questionable changes or amendments?

Is there a lack of transparency by the trustee?

Are there clear signs of unfair or unequitable trust distribution?

Does the trustee want to change the trust, saying it doesn’t reflect the trustor’s verbal instructions?

Do documents suddenly appear?

Has the trustee hidden or changed certain accounting records?

Are statements for investments missing?

Are some documents original and others are photocopies?

Do some documents look like they have been altered?

Are pages missing?

Is the trustee on their 2^nd or 3^rd attorney?

When is litigation necessary in trust disputes?

There seems to be no end to the types of schemes a trustee will implore to benefit themselves. While trusts are typically designed to prevent unnecessary disputes, it doesn’t stop some trustees from trying to achieve illegal gain. When suspicious circumstances surround an amendment of a trust, anyone who has standing (i.e., the trustee, beneficiaries or heirs) can contest the trust’s terms. When disputes cannot be resolved between the trustee and beneficiaries, informally or when contesting the terms of the trust is necessary, litigation is the next step.

If you have concerns about your trust or trustee, our attorneys have the expertise and experience to handle your trust matter skillfully and efficiently. Please contact Mortensen & Reinheimer, PC at (714) 384-6053 to make an appointment, or use our online contact form. Our website is http://www.ocestateplanning.net.

About the author:
Noah B. Herbold, Attorney, is a Certified Specialist in Estate Planning, Trust & Probate Law (The State Bar of California Board of Legal Specialization). His primary focus is assisting clients with litigated matters such as: Trust Contests, Breach of Trust, Fiduciary Appointment and/or Removal, Asset Ownership, Beneficiary Rights, Determination of Heirship, Elder Financial Abuse, Property Disputes, and Conservatorships. Contact Noah at noah@ocestateplanning.net.