Questions re: family trust

[wanaberetiree]

I need to update my family trust, it's 14 yo.
Just wondering what questions people ask from a trust attorney?

E.g. - did you search for house title? was the updated trust recorded? etc.

 

[MooreBonds]

I need to update my family trust, it's 14 yo.
Just wondering what questions people ask from a trust attorney?

E.g. - did you search for house title? was the updated trust recorded? etc.

Is this just a revocable trust to quickly and easily pass on assets after your death? or is this a family trust that is intended to exist for several generations? What kinds of "updates" are you having to make? One would think whether it was a RLT or a multi-generational trust, it should have been set up correctly when it was created, and you should have been titling major assets (houses, financial accounts) as you have gone along over the years.

If a multi-generational trust, who are the trustees? Make sure you have several lined up, and that they all know what is involved, and what to expect at that time. You don't want to have a trustee be surprised when they suddenly have "all this stuff to do", feel overwhelmed, and then make mistakes out of ignorance or just in a rush to get "all of this crap finished and overwith".

If a RLT, you should be verifying the various first trustee and backup successor trustees are listed correctly, and still willing to act in that role. Make sure a handy reference list is available so they know all account locations, document locations (wills, healthcare power of attorney documents, health/life insurance policies). Make sure all retirement accounts and life insurance policies are set up properly with your beneficiaries and/or trusts (some states require a spouse to be the primary beneficiary for different percentages, regardless of who you list as a beneficiary).

 

[bingybear]

I assume both spouses are still alive and thus the forming of the irrevocable family trust has not been created. That is there are two RLT active now and this is set up as a AB, bypass, or family trust.
Your example "did you search for house title? was the updated trust recorded?" really should have been done just after setting up your trust. Actually you needed to change the deed (often one spouse does a quit claim and the house is put in the other spouse's trust name.)
If this is the type of trust you are referring to...
Check that you have titled all assets you intended to put in the trust.
Check the beneficiaries of other assets that should go into the trust at your death have the trust listed as the beneficiary.
If the reason for using this type of trust was to capture both unified exclusion, then check if this type of trust is what you want. Federal estate tax law now allows for portability of the unified exclusion between spouses. Do you want the trust to become irrevocable with one capable spouse?
For you it has been 14 years. Are there parts of the trust that are irrelevant like dealing with minor children that are grown? Should some sections be removed and revised for the present view of the family situation?