Many people who approach their estate planning attorney about putting together a trust have a goal of establishing the trust for the beneficiary’s lifetime, while also allowing for discretionary distributions to a beneficiary in the event that the beneficiary might have a reason or need to access those trust funds. Many of these trusts often are created with default provisions designed by the client, which allow for the disposition of remaining trust funds at the beneficiary’s death.
However, the creator of the trust does not have the ability to see into the future, meaning that the default provisions for a trust remainder often become undesirable over the course of time. This is where the use of a tool known as a power of appointment can become meaningful. This is a good way to add flexibility to trusts to account for future situation changes.
This allows the initial beneficiary to adjust default remainder provisions after the creator’s death. Schedule a consultation with a trust planning attorney today to learn more.
Choosing a trustee is an important process, and it’s not just about who you’d like to serve in that role. It’s also about who wants to serve in that role and their comfort level with taking on that level of responsibility. Since a trustee has a high level of fiduciary duty, too, this needs to be a level of comfort on their end in terms of taking care of all the details. What you don’t want is someone unfamiliar with the process who is not sure about all the details who then becomes overwhelmed in handling all of the tasks of a trustee.
For more support with trustee issues, consider partnering with a trusted estate planning lawyer to draft and fund your trust.