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When Your Children Live in Different States
Today, it is common for parents to have children living in different states. While distance does not prevent a child from serving in an important role, it can create challenges when an emergency occurs. An out-of-state child may be a good choice to manage your finances, as many financial tasks can be handled remotely. However,…
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Common Mistakes Successor Trustees Make
Being named as a successor trustee is an honor, but it also carries significant legal responsibilities. Many trustees assume they can immediately distribute assets, only to discover they must first follow the trust’s instructions, identify and value assets, pay valid debts, address tax issues, and keep accurate records. Other common mistakes include failing to communicate…
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Should My Guardian and Trustee Be the Same?
Whether you select the same person to act as guardian and trustee will likely be based on the ability and capacity of the specific person. Some people may have the skills required to manage both roles effectively, which can simplify certain aspects of the process. On the other hand, not every person can do both…
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Who Makes a Good Trustee for a Minor Child
A trustee manages the financial legacy you leave behind for your minor child. The most important characteristic is that they manage finances well. They do not need specialized knowledge as they can seek assistance from financial professionals should it be needed. Consider whether your trustee will agree with the way you have structured your child’s…
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Introduction to Revocable Living Trusts
A revocable living trust, like a will, directs the distribution of assets to your beneficiaries after you pass away, but it also provides added functionality. Like other types of trusts, there are three roles under a revocable living trust. The person who creates the trust is called the settlor, trustmaker, grantor, or trustor. The person…
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Choosing a Special Needs Trust (SNT) Trustee
Special needs trusts have highly technical terms and administrative requirements, and the rules governing them are complicated. A simple mistake on the part of the trustee could unintentionally hurt the beneficiary. A layperson as the trustee of an SNT can hire an attorney to provide guidance and assistance and they may need to do so…
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Distribution Trustees-Taxes
If a trustee has total discretion to make distributions from the trust to themselves or others, the value of the trust’s assets may be included in the trustee’s estate for estate tax purposes, or the trustee may be taxed on the trust income. An independent trustee could be appointed to minimize either estate or income…
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Distribution Trustees-Asset Protection
The general rule is that the less control a beneficiary has over a trust, the more asset protection is provided against creditors’ claims. Most creditors may not reach a beneficiary’s interest in a trust if the trustee is not required to make distributions. Greater asset protection may be available if a separate distribution trustee is…
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Distribution Trustees
Some trusts call for distributions to be made at the trustee’s discretion rather than a certain amount or percentage at specific times. For those trusts, it may be helpful for another trusted person capable of making impartial decisions and familiar with the beneficiaries of the trust and their needs to be named the distribution trustee,…
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Investment Trustees
When considering who will take over when you can no longer act as trustee, it is sometimes helpful to divide the responsibilities between two or more successor trustees. Trustees have a variety of duties and responsibilities, and it is sometimes beneficial to divide them up based upon the expertise or skills needed to perform a…
Category: Trustee
Eckert & Krautkramer, LLC
Protecting Assets, Preserving Dignity, Ensuring Peace of Mind
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