As we all know, the Covid-19 pandemic has affected just about everything. It has definitely been true with ‘legacy planning’ as the need and urgency to get Estate Plans in order has been highlighted. It’s a task that many people have admittedly put on hold for too long. It is highly likely that there will soon be a lower estate tax exemption coming under the new administration, and with the aging, baby
boomer population, it strongly appears that 2021 is the perfect time to focus on getting your personal estate plan prepared. This includes – creating, updating, funding, and finalizing formal estate planning documents.

Even before the pandemic hit, many people I’ve talked to anticipated needing trust knowing that the current elevated estate credit is set to expire in 2025 – we don’t know what is going to happen to it, but it gives the need for a conversation. The pandemic created more urgency by forcing people to examine whether their financial and legal affairs are in order in the event of an illness or death.

Living Trusts certainly offer peace of mind for loved ones and they allow people to control where their assets will end up after their passing – without the inconvenience and undue costs of probate. For those with larger estates, Trusts are what protect assets and safeguard against overspending tendencies, as well as provide privacy and reduce estate and gift taxes.

One of the most important aspects of establishing a Trust is deciding who to appoint as a Successor Trustee. Not everyone can serve in that capacity. Choosing your Successor Trustee requires some serious thought and discussion. The duties of a Successor Trustee are many and can often feel burdensome if not managed correctly. Both the technical and administrative aspects are considerations, as well as the impact of the role itself on family harmony. For example, say one of your siblings is named trustee of your parents’ estate and you have never really gotten along with that sibling. It’s something to think about in terms of what dynamics that could create in the family. To avoid those issues, we’ve had clients (acting as a trustee for a family member or friend) ask us if there were other options.

There are other options and I am here to explore those with you if you find yourself in that position. It is crucial that if you want reassurance that your assets will go to the people you love, then you must be prepared – and the first step in Estate Planning is to give us a call.

I look forward to helping you prepare your legacy plan in 2021!

By Donald W. Flaig,

THE FLAIG LAW FIRM, APC

Westlake Village, CA