Trusts

What Happens If You Lose Your Trust Document?

May 30, 2023 By Gratia P. Schoemakers, Esq. Leave a Comment

Losing a trust document can be a stressful and frustrating experience. Trust documents are legal instruments that govern the distribution of assets and property, and losing them can complicate the administration of a trust. However, there are steps you can take if you lose your trust document.

The first step is to contact the attorney who drafted the trust document. They may have a copy of the document or be able to help you obtain a copy. If the attorney is no longer available, you can contact the state bar association for a referral to a trust and estates attorney who can help you.

If you cannot locate a copy of the trust document, you may need to petition the court to declare the trust document lost and establish a new trust. This can be a complex and time-consuming process, and it’s important to work with an experienced trust and estates attorney to navigate it.

To petition the court, you will need to provide evidence that the trust document is lost or missing. This may include an affidavit from the trustee or other witnesses who can attest to the loss of the document. You may also need to provide evidence of the terms of the trust, such as bank statements, deeds, or other documentation that can help establish the trust’s assets and distribution.

Once the court has declared the trust document lost, you can work with your attorney to establish a new trust. This may involve drafting a new trust document and transferring assets into the new trust. It’s important to ensure that the new trust document accurately reflects your wishes and that all assets are properly transferred to the new trust.

Losing a trust document can be a challenging experience, but with the right legal guidance, you can navigate the process and ensure that your trust is properly administered. If you have lost your trust document, it’s important to contact an experienced trust and estates attorney as soon as possible to discuss your options and protect your interests.

We have helped hundreds of people get their probate and trust administration; we can help you too! Our office is located at: 1100 East NASA Parkway, Suite 420J, Houston, TX 77058 you can also call our office at 832.408.0505 and book your Legal Strategy Session today!

5 Reason Why a Trust Might Be a Good Idea

May 15, 2023 By Gratia P. Schoemakers, Esq. Leave a Comment

A trust is a legal arrangement in which one person, the trustee, holds property for the benefit of another person, the beneficiary. Trusts can be powerful estate planning tools that offer a wide range of benefits for individuals and families.

Here are some reasons why you may need a trust:

Avoiding Probate: One of the most common reasons people use a Living Trusts is to avoid the probate process. Probate is the legal process through which a deceased person’s assets are distributed to their heirs or beneficiaries. Probate can be expensive, time-consuming, and public. By using a trust, you can transfer assets to your beneficiaries outside of the probate process, which can save time and money.
Asset Protection: Asset Protection Trusts can also be used to protect assets from creditors and lawsuits. By placing assets in a trust, they are held separately from your personal assets and may be more difficult for creditors to access. This can be particularly important for individuals who work in high-risk professions or who have significant assets that they want to protect.
Control: Trusts allow you to maintain control over your assets even after your death. With a trust, you can specify how your assets will be distributed and under what circumstances. This can be particularly important for individuals who have complex family situations or who want to ensure that their assets are used in a specific way.
Privacy: Unlike wills, which are public documents, trusts are private. This means that the details of your estate plan will not be available to the general public. This can be particularly important for individuals who value their privacy or who want to avoid disputes among family members.
Tax Planning: Trusts can also be used for tax planning purposes. For example, certain types of trusts can help to reduce estate and gift taxes or provide tax benefits for charitable donations.

Overall, trusts can be powerful estate planning tools that offer a wide range of benefits for individuals and families. There are a large variety of trusts that are used for different purposes. If you are considering using a trust, it’s important to work with an experienced estate planning attorney who can help you to identify the right type of trust for your situation and ensure that your estate plan is comprehensive and legally valid.

We have helped hundreds of people get their estate plan in order; we can help you too! Call our office at 832.408.0505 and book your Legal Strategy Session today!

What Is Accidental Disinheritance?

May 8, 2023 By Gratia P. Schoemakers, Esq. Leave a Comment

Accidental disinheritance can occur when a person unintentionally fails to leave assets to a loved one in their estate plan. This can happen for a variety of reasons, such as overlooking a beneficiary, failing to update a will after a life-changing event, or misunderstanding the legal requirements for passing on property.

Accidental disinheritance can have serious consequences for the loved one who is left out of the estate plan. In some cases, it can result in costly and time-consuming legal battles among family members. For example, if a parent unintentionally disinherits a child, that child may have legal grounds to challenge the will and claim a portion of the estate. This can be a stressful and emotionally draining process for all parties involved.

Maybe a person remarried but failed to see an attorney about a new will. We have seen situations where a second spouse, receives nothing beyond their community share. This can be disastrous when the surviving spouse was not the bread winner, and is left desolate due to lack of proper estate planning by their now deceased spouse.

To avoid accidental disinheritance, it’s important to regularly review and update your estate plan, especially after major life events such as marriage, divorce, or the birth of a child. It’s also important to clearly communicate your wishes to your loved ones and ensure that they understand the details of your estate plan. This can help to avoid misunderstandings and disputes after your death.

In addition, it’s important to work with an experienced estate planning attorney to ensure that your estate plan is comprehensive and legally valid. An attorney can help you to identify potential areas of accidental disinheritance and provide guidance on how to avoid them. They can also help you to navigate complex legal issues, such as tax implications and the distribution of assets in blended families.

If you are concerned about accidental disinheritance, it’s important to take action sooner rather than later. By working with an experienced attorney to develop a comprehensive estate plan, you can ensure that your wishes are carried out and your loved ones are protected after your death.

We have helped hundreds of people get their estate plan in order; we can help you too! Call our office at 832.408.0505 and book your Legal Strategy Session today!

Updating Your Revocable Trust: How Many “Tweaks” Are Too Many?

April 17, 2023 By Gratia P. Schoemakers, Esq. Leave a Comment

If your life or the law has changed since you signed your trust, it needs to be updated. Updates can be made by way of an amendment – or – a complete restatement. An amendment updates a specific part of the trust, whereas, a restatement, updates the entire trust. You might think that an amendment would cost less than a restatement, but that’s not necessarily true. Let’s chat about which is best for you.

Amendments vs. Restatements: Which Is Better?

Imagine a recipe card you’ve used for years. If one or two provisions have been crossed out and replaced, the card may still be readable. However, if many provisions have been altered, the recipe is likely confusing. If your loved ones can’t read your instructions and determine whether to add a cup of flour or a cup of sugar, your recipe won’t work. You’ve got a 50/50 chance for a great dish – or a complete disaster.

The same can be said about revocable trust. Making one or two amendments is generally acceptable, but when revisions are numerous or comprehensive, your instructions may become confusing, and you may be better served with a restatement.

Although amendments are generally used to make smaller changes and restatements are used for larger ones, there’s no bright line rule when it comes to amending or restating a revocable trust. A general guideline to follow is that anytime you’re making more than two changes, restatements are likely better as they:

Foster ease of understanding and administration
Tend to avoid ambiguity
Reduce the amount of paperwork to retain and provide to financial institutions / parties
Decrease the risk of misplacement
Prevent beneficiaries from discovering prior terms
Provide an opportunity to provide other relevant updates, such as changes in the law

In many cases, a restatement may actually be more cost effective than amendments. This is especially true today as computer software allows estate planning attorneys to create and retain documents easily and efficiently. Fortunately, today, you pay for legal counseling, not typing.

Have Questions About Updating Your Trust? We Can Provide Answers

Before deciding whether to amend or restate, it’s important to determine whether previous changes have inadvertently altered your intentor might adversely affect how the trust is administered. We’ll help make your instructions clear.

Have questions? If you do, that’s normal. We can provide you with answers. Whatever your circumstances, rest assured that we can help you to determine the best way to update your trust. Call us today and we’ll help make your instructions are up-to-date and crystal clear.

Did Whitney Houston Leave Too Much Money To Bobbi Kristina?

March 20, 2023 By Gratia P. Schoemakers, Esq. Leave a Comment

Whitney Houston’s estate was worth approximately $20 million when she died – plenty to meet the needs of her only daughter – Bobbi Kristina. Sadly, only a few years after Houston’s death, Bobbi Kristina died as well.

Although Bobbi Kristina’s previous boyfriend, Nick Gordon, is still a suspect in her murder, many say that having access to so much money at a young age was a contributing factor. Sadly, Houston’s estate planning mistakes are all too common.

**Aunt & Grandmother Say Will Did Not Depict Houston’s Intentions**

Houston’s aunt and grandmother filed a lawsuit to re-write the will as they say it didn’t accurately depict what Whitney really wanted for Bobbi-Kristina. They claimed that she was too young to handle so much money.

Although they likely had the best of intentions, probate courts must follow the terms of the actual will or trust documents, not what the person who died might have otherwise intended.

Whitney Houston’s will was created in 1993, specifying that a trust would be created after she died for any children she may have (so before Bobbi-Kristina was even born). Unfortunately, she never updated her will before she died.

Inheriting Money at a Young Age is Never a Good Idea

Whether this tragedy could have been adverted if Bobbi Kristina’s distributions were delayed until she was older is anyone’s guess. The bottom line is that inheriting large sums of money at a young age is generally never a good idea. Although the young beneficiary might be responsible, young people can be easily manipulated by others.

While it’s clear that Houston could have better protected that money with a stronger estate plan, she’s certainly not the only one guilty of not following through. In fact, many of us have the best intentions, but simply don’t make the time to create – and update – proper estate planning documents that can help beneficiaries.

Set Your Beneficiaries Up For Success!

You do have the power to set your young beneficiaries up for success. In most cases, that means creating a trust that allows them access to money over time and can be managed by someone you trust and has their best interests at heart.

We can provide you with the tools you need to protect your loved ones – whatever your situation may be. As Houston’s case shows, ignoring estate planning issues can have tragic consequences. Call or contact us today and let’s get started protecting you and those you love.

5 Mistakes Made by Successor Trustees (and How To Prevent Them)

February 20, 2023 By Gratia P. Schoemakers, Esq. Leave a Comment

When establishing a trust, you need to give serious thought to choosing your successor trustee—the person who will administer your trust once you’re no longer able to do so. This individual ideally should be:

Someone you trust implicitly.
Someone who is organized, responsible and meticulous.
Someone who can remain steadfast to your wishes in the face of family disagreements and other disputes regarding the trust.

That said, even the most capable, well-intentioned successor trustees can make mistakes when managing affairs. Here are five surprisingly common mistakes along with steps to take to prevent them from happening.

1. Faulty Record-keeping

To ensure that a trust fulfills its purpose without being contested, the trustee must keep accurate, detailed records of income and distributions. Your trustee must also be prepared to report these figures regularly to the beneficiaries and heirs. If these records are incomplete or inaccurate, the door is opened for someone to challenge the trust, potentially leading to lengthy and costly court battles.

To prevent this mistake: Hire an accountant to assist the successor trustee in record-keeping, and make sure the trustee and the accountant make a connection before the trustee takes over.

2. Misunderstanding the Fiduciary Role

Many trustees mistakenly assume their job involves acting in the best interests of the person setting up the trust. In reality, their job is to act in the interests of the beneficiaries of the trust. Furthermore, the trustee may be legally liable for any failure to protect the beneficiaries against bad investment advice concerning the trust.

To prevent this mistake: Detail the fiduciary role of the successor trustee in the trust documentation itself, and be certain that the trustee understands his/her role.

3. Not Collaborating Effectively with Your Established Financial Team

The successor trustee’s failure to communicate with key members of your team while administering your trust can lead to inaccuracies, misunderstandings and significant, preventable financial losses.

To prevent this mistake: Make sure your trustee is properly introduced to, and connected with, your attorney, CPA, financial planner, and anyone else involved with your estate planning.

4. Failing to Discuss Compensation

If your appointed trustee is a close friend or family member, the topic of compensating the trustee may be glossed over or forgotten. This oversight can result in a lack of morale or even resentment if managing the trust becomes difficult or time consuming.

To prevent this mistake: Bring up the topic of compensation yourself when you establish the arrangement; be as generous as you deem necessary; and put the compensation terms in writing.

5. Failing to Remain Objective

Many people choose a close family member as a trustee. This strategy can be appropriate, especially when privacy matters. However, disputes about money can happen even in the tightest-knit families, and it can be difficult to near-impossible for a relative to remain neutral when resolving those fights. The end result could be decisions that family members perceive to be unfair or that wind up being inconsistent with your intentions.

To prevent this mistake: Make certain the person you choose can remain neutral and faithful to the terms of the trust, even under duress. If there is any doubt, consider hiring a corporate trustee with no emotional connection to the family or estate.

Selecting a successor trustee is one of the most important decisions you will make during your estate planning process. For insightful counsel on this issue, contact us today to schedule a private appointment.