Page 9 - Jupiter Spotlight - August '24

Jupiter Spotlight, Page 9
Financial Focus
Whom Should You Choose As
A Trustee?
By Sally Sima Stahl
When drawing up your
estate plans, you might find
it useful to create a revocable
or irrevocable trust, either of
which can help your estate
avoid probate court and give
you significant control over
how and when your assets are
distributed. But who should
oversee your trust?
As the person who
established the trust — known as the “grantor” or “settlor”
— you can also name yourself as trustee. However, this may
not be the best move, particularly if the trust is irrevocable. An
irrevocable trust protects the assets in the trust from creditors professional — but they should be skilled at managing their
and civil judgments, but if you serve as trustee, this protection
own finances. And they should be well-organized and good
will disappear. It might be more advantageous for you to be with details.
the trustee of a revocable (living) trust, which can be modified • Mental and physical fitness – Your trustee could serve in
without much trouble and allows you to move assets in and that position for many years, so you’ll want to name someone
out of the trust and to change trust beneficiaries. You should who is in good physical and mental health. Of course, things
work with a qualified estate-planning attorney to determine can change over time, so if you observe that your chosen
which type of trust, if any, is appropriate for your situation, trustee has begun to suffer physical or mental decline, you
and to get some guidance on the wisdom of serving as your may need to name a successor trustee in your trust document.
own trustee. • Conflict of interest – You want your trustee to carry
If you decide to choose someone else as trustee, you’ll out your wishes in a fair manner — so, you should pick
want to consider the following factors: someone who doesn’t have a conflict of interest with any
• Trust – In thinking about whom you might want to serve of the beneficiaries you’ve named in your trust. Of course,
as your trustee, the most important attribute is trust. Do you this can be tricky if you want to name a family member as
trust that this individual will always act in your best interest? trustee. So, if you do, you’ll need to spell out your wishes
If so, then they may be a good trustee candidate, but you’ll clearly — to the trustee and to other family members.
also need to look at other considerations. Here’s something else to think about: Instead of choosing
• Financial management skills – The person you choose to an individual, you could name a corporate trustee. By doing
be your trustee doesn’t have to be an accountant or a financial so, you can receive some key benefits, such as objectivity and
potentially avoiding some of the family-related disputes that
can arise when an estate is settled. Also, corporate trustees
have the expertise and resources to navigate the various tax
and inheritance laws affecting living trusts.
Whether it’s a trusted individual or a corporate entity, the
right trustee can make a big difference in the effectiveness
of your living trust — and, by extension, the outcome of
your comprehensive estate plans. So, start your search, get
the help you need and take the steps necessary to arrive at a
choice for trustee that’s right for you and your family.
This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor, Edward Jones,
Member SIPC.
Edward Jones is a licensed insurance producer in all states
and Washington, D.C., through Edward D. Jones & Co., L.P.,
and in California, New Mexico and Massachusetts through
Edward Jones Insurance Agency of California, L.L.C.;
Edward Jones Insurance Agency of New Mexico, L.L.C.; and
Edward Jones Insurance Agency of Massachusetts, L.L.C.
Edward Jones, its employees and financial advisors cannot
provide tax advice. You should consult your qualified tax
advisor regarding your situation.
Contact us at (561) 748-7600, Sally Sima Stahl, CFP ,
®
AAMS , 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
™
It’s The Law!
Did You Know That, In
Florida…
By Adam S. Gumson,
Esq.
There are many free
ways to avoid having to
go through an expensive
probate proceeding, such
as passing property or
financial accounts via
joint ownership or via
designated beneficiary
forms. You can also title
assets in a living revocable
trust such that no court involvement is necessary.
Florida’s homestead laws impact how the primary
residence is distributed at a decedent’s death. If a Florida
resident dies with a surviving spouse and no minor children,
the surviving spouse may inherit the entire homestead, even
if the decedent had children from a previous marriage.
However, if the decedent had minor children at the time of
his/her death, then the children are constitutionally entitled
to a share of the residence.
Special needs trusts (SNT) are designed to provide for
a physically or mentally disabled beneficiary in such a way
that the trust assets are not placed in that beneficiary’s name.
Therefore, such assets do not count as that beneficiary’s
assets for the purposes of Medicaid eligibility. The SNT
allows the trust assets and any income from such assets to
improve the beneficiary’s quality of life by paying for some
of his/her expenses which are not covered by Medicaid
(such as personal grooming, entertainment, technology like
computers and TVs, massages and transportation).
Jupiter Law Center is a private neighborhood law firm
located in the RiverPlace Professional Center, 1003 W.
Indiantown Road, Suite 210, Jupiter, Fla., (561) 744 - 4600,
jupiterlawcenter.com. The firm provides peace of mind by
solving problems with integrity and compassion in the areas
of estate and business planning, probate, guardianship and
trust administration, probate and guardianship for personal
injury firms, family law and real estate.