Trusts are legal documents that give the document holder that allows a third party to hold assets on behalf of a beneficiary or beneficiaries.

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How to Choose the Initial Trustee of Your Trust

When establishing a trust, nominating a trustee is a crucial step. If you’re creating a revocable living trust, you will likely be the initial trustee. Additionally, it’s essential to name successor or backup trustees who can manage the trust’s affairs if you are unable to do so.

The trustee is responsible for managing the trust’s accounts and property, which includes:

  • Collecting income
  • Paying bills and taxes
  • Making investment decisions
  • Buying and selling property
  • Distributing funds to you and your beneficiaries according to the trust’s instructions
  • Keeping accurate records and ensuring everything is organized

Who Can Be Your Initial Trustee?

If you have a revocable living trust, you can serve as your own trustee. If you are married, your spouse can act as a co-trustee. This arrangement allows either spouse to manage financial affairs without interruption if the other cannot. Many married couples opt to serve as co-trustees, particularly if they have shared accounts and property.

However, you are not required to be your own trustee. Some individuals choose to appoint an adult child, trusted friend, or relative. Others prefer a professional or corporate trustee, such as a bank trust department or trust company, for their experience and investment expertise.

Nominating someone else as trustee or co-trustee does not mean you lose control. The trustee must follow the instructions outlined in your trust and may need to report back to you. You can also replace your trustee if needed.

When to Consider a Professional or Corporate Trustee

A professional or corporate trustee may be valuable in several situations. If you are elderly, widowed, or in declining health with no children or trusted relatives nearby, a professional trustee can provide peace of mind that your affairs are being handled appropriately. Alternatively, you may simply prefer not to manage investments yourself, regardless of your age or health status.

Certain irrevocable trusts may prohibit you from acting as a trustee due to tax law restrictions. In these cases, a professional or corporate trustee may be the best choice, as they have the expertise and resources to manage your trust effectively and help you meet your investment goals.

What You Need to Know About Fees

Professional or corporate trustees typically charge a fee based on the value of the trust’s accounts and property. While these fees can be significant, they may be worthwhile given the trustee’s experience, the quality of services provided, and the potential investment returns they can generate.

Actions to consider: 

  • Evaluate Your Ability: Honestly assess whether you are the best choice to be your own trustee. Someone else may manage your investments more effectively. If you choose to be the trustee, consider hiring financial advisors to assist you.
  • Consider a Co-Trustee: Nominating someone as a co-trustee can help them learn about your trust and its management while allowing you to evaluate their capabilities.
  • Evaluate Candidates Realistically: When selecting a trustee, be cautious. Financial management skills do not necessarily correlate with birth order or family dynamics.
  • Research Professional Trustees: If considering a professional or corporate trustee, interview several candidates to compare their services, investment returns, and fees.

Get the Support You Need

We can help you select, educate, and advise your successor trustees, ensuring they know how to fulfill your wishes. Give Williams Starbuck a call today!

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How to Choose a Conservator for Yourself

Every day, we make countless decisions, from what to have for breakfast to where to take our next vacation. But what happens when you’re unable to make those decisions for yourself? Who will step in to make day-to-day choices on your behalf? How do you choose a conservator for yourself?

What Is a Conservator?

A conservator is a court-appointed agent who takes control of your financial affairs when you are unable to manage them yourself. Depending on state law, this role may be called a guardian or guardian of the estate. The court will grant the conservator the authority to act on your behalf, ensuring your financial needs are met. Many jurisdictions prioritize individuals designated as agents or conservators in a financial power of attorney, underscoring the critical importance of preparing this document in advance.

The Importance of a Financial Power of Attorney

If you’ve recently updated your estate plan, you may have signed a financial power of attorney (POA), authorizing a trusted person to manage tasks like signing checks, opening accounts, managing property, and handling contracts. It’s a lifesaver if you can no longer handle these tasks yourself.

Understanding the Need for a Conservator

If you can’t make decisions, your loved ones may need to petition a judge to appoint a conservator. To avoid this, appoint an agent in your financial power of attorney and, if allowed, nominate a conservator through a document like a declaration of preneed guardian (name varies by state).

The Risks of Not Having a Plan

If you lack a financial power of attorney or similar documents, each state has laws outlining who may serve as a conservator. This could lead to an undesirable situation where someone you wouldn’t have chosen—like an estranged relative—manages your affairs. A financial power of attorney allows you to clearly communicate your wishes to the court.

Key Questions to Consider When Choosing a Conservator

To ensure you are cared for by someone you trust when you can no longer manage on your own, consider the following questions when evaluating potential candidates:

• Do they have the time? Often, the most capable and knowledgeable individuals are also the busiest. Ensure they can dedicate the necessary time to fulfill their responsibilities.

• Do they live nearby? Even in our digital age, some matters may require in-person interaction. A conservator who lives far away may struggle to carry out their duties effectively without incurring unnecessary costs or delays.

• Does your chosen conservator have the necessary skills? They should be organized, detail-oriented, and able to communicate effectively. An unreliable or scattered individual is unlikely to be a strong advocate for your interests.

Get Help When You Need It

If you have any questions or would like to discuss whom to appoint for this important role, don’t hesitate to contact the team at Williams Starbuck today! We’re here to help.

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What to Do with Grandma’s Ring: Navigating the Division of Personal Property in an Estate

When a beloved family member passes away, the memories they leave behind often evoke feelings of warmth, nostalgia, and even bittersweet moments. Amidst the emotions, however, there comes the practical challenge of dividing their personal property in their estate, particularly sentimental items like Grandma’s cherished ring. Understanding how to navigate this delicate process can help ease tensions and honor your loved one’s wishes.

Balancing Emotional and Financial Value

Estate planning discussions often center on large assets such as homes, cars, and financial accounts. Yet, smaller personal items in an estate can carry significant weight—both emotionally and financially. Heirlooms like Grandma’s ring, a cherished watch, or a treasured piece of furniture may hold deep sentimental value, sometimes even surpassing their monetary worth. When an estate plan doesn’t clearly account for such items, disputes can arise, straining relationships and complicating the probate process.

Deciphering Residuary Clauses: Understanding the Fine Print

Many wills and trusts distribute personal property through a residuary clause, which directs how to handle remaining assets after specific bequests are fulfilled. If a single beneficiary inherits the residuary estate, the process is straightforward. However, when multiple beneficiaries are involved, the division becomes more complex. Differing perspectives on the sentimental value or monetary worth of certain items can lead to disagreements.

Resolving Conflicts Among Beneficiaries

When several family members have their eyes on the same keepsake, open communication becomes essential. Resolving conflicts may involve:

  • Negotiating Trades: Beneficiaries may agree to swap items of comparable sentimental or financial value.
  • Selling and Splitting the Proceeds: If no resolution is reached, selling the item and dividing the proceeds evenly can serve as a fair compromise.
  • Drawing Straws or Random Selection: As a last resort, beneficiaries can use this method when all other options have been exhausted.

If disputes persist, the executor or trustee overseeing the estate may step in to mediate and help facilitate an agreement.

The Importance of a Comprehensive Estate Plan

The best way to avoid conflicts over personal property is to have a thorough estate plan that clearly outlines your intentions. Proactively discussing your wishes with loved ones and considering gifting certain items during your lifetime can prevent future misunderstandings. Providing clear instructions for sentimental possessions ensures family heirlooms are passed down as intended, preserving harmony.

Seek Professional Guidance for a Smooth Process

Dividing personal property in an estate, particularly sentimental items, requires careful planning, clear communication, and often legal expertise. To navigate this process smoothly and honor your loved one’s wishes, consider seeking guidance from a qualified estate planning attorney. At Williams Starbuck, we specialize in creating comprehensive estate plans and assisting with the administration of estates. Contact Williams Starbuck today to schedule a consultation and learn how we can help you protect your family’s legacy.

Special Needs Planning: Protecting the Future of Your Loved Ones

Special needs planning is crucial for providing ongoing support while maintaining eligibility for essential government benefits. Here’s a breakdown of key aspects and steps to creating an effective plan.

Key Aspects of Special Needs Planning

  • Special Needs Trust: Set up a special needs trust to offer financial support without affecting eligibility for benefits like Medicaid and SSI. This trust ensures access to funds for care and personal needs.
  • Long-Term Care: Plan for ongoing care expenses, including medical needs, housing, and personal support services. Make sure your financials can cover these long-term requirements.
  • Choosing a Trustee: Pick a trustworthy and capable trustee to manage the special needs trust. This person or institution will handle funds appropriately, aligned with your loved one’s needs.
  • Government Benefits: Learn how your financial plans affect eligibility for government assistance. Adjust your strategies to ensure uninterrupted support for your loved one.

Steps to Create a Plan

  1. Consult with an Attorney: Work with an attorney who specializes in special needs planning to develop a comprehensive plan that addresses all aspects of your loved one’s future.
  2. Set Up a Special Needs Trust: Create a trust that will provide financial support while preserving eligibility for government benefits. Structure the trust to meet your loved one’s specific needs.
  3. Develop Financial and Care Plans: Outline how to use funds and manage care. Include provisions for any unexpected changes.
  4. Communicate with Family Members: Discuss your plans with family members to ensure everyone understands their role and responsibilities in your loved one’s care.
  5. Review and Update Regularly: Periodically review and update to reflect changes in your loved one’s needs or financial situation.

Get Support Now

These steps are vital for ensuring a stable and supportive future for your loved one. For personalized guidance, contact Drew Starbuck at Williams Starbuck Attorneys at Law at 720-320-7755 to schedule a consultation and secure your loved one’s future.

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The Role of Trusts in Estate Planning: Revocable vs. Irrevocable

Trusts are a fundamental tool in estate planning, offering numerous benefits such as avoiding probate, minimizing taxes, providing organization, and maintaining control over your assets. At its core, a trust is a legal document that outlines your wishes, guiding your loved ones on what to do and when.

Understanding Revocable vs Irrevocable Trusts

While there are many types of trusts, the primary distinction lies between revocable and irrevocable trusts. Each serves a different purpose and offers unique benefits.

Revocable Trusts: Flexibility and Control

Revocable trusts, often referred to as “living trusts,” are designed to benefit you during your lifetime. The key advantage of a revocable trust is its flexibility; you can alter, change, modify, or even revoke the trust entirely if your circumstances or goals change.

  • Control: With a revocable trust, you retain full control over the assets. You can transfer property in and out of the trust, serve as the trustee, and be the primary beneficiary.
  • Successor Trustees: You can appoint successor trustees to manage the trust if you become incapacitated or upon your passing, ensuring that your assets are handled according to your wishes without court intervention.
  • Avoiding Probate: Assets held in a revocable trust bypass the probate process, making it more difficult for creditors to access them. This protection is a significant advantage for those looking to safeguard their beneficiaries’ inheritances.

Irrevocable Trusts: Enhanced Protection and Tax Benefits

In contrast, irrevocable trusts involve transferring assets out of your estate and into the trust’s name. Once established, you cannot alter, change, modify, or revoke the trust, making it a more permanent arrangement.

  • Asset Protection: Irrevocable trusts provide greater asset protection, keeping your assets out of reach from creditors.
  • Tax Reduction: Because the assets are no longer considered part of your estate, they often reduce estate taxes.
  • Trust Protectors: Although you lose direct control, trust protectors can make adjustments if your original intentions become unfeasible due to changes in law or circumstances.

Which Trust is Right for You?

Choosing between a revocable and irrevocable trust depends on your unique needs and goals. As experienced estate planning attorneys, we can help you determine which option best fits your situation. Contact Drew Starbuck at 720-660-9847 to schedule an appointment and ensure your estate is in good hands.

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What Are Unmarried Couples’ Rights When One Of Them Dies In Las Vegas?

Wondering about an unmarried couple’s rights when one of them dies in Las Vegas? Here’s what to know and how an estate planning attorney can help.

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Estate Planning for Military Families

Although Memorial Day just passed, it is important to honor those that have served our country. This time is also an opportunity for members of the military and their loved ones to consider setting up an – or revising an existing – estate plan. Military families need to consider special estate-planning issues that others do not. This is particularly true when one or more family members are deployed overseas. Beyond this, members of the military have access to special benefits and resources. This can become complicated and, for this reason, it’s important to seek specialized help if you are a military family. Whether you are just starting in the military or a seasoned veteran, below are some common factors to consider for your estate planning needs.

Important Factors to Consider 

Everyone’s estate plan should be customized to the person’s particular circumstances. Some factors that should be considered include whether you:
  • Own real property and, if so, if the real estate is located in different states;
  • Are married;
  • Have minor children, or children with special needs;
  • Have money set aside in 401(k), IRAs, or thrift savings plans;
  • Plan to give to charity; and
  • Are moving multiple times across states or to different countries.

Estate Planning Necessities 

There are many benefits offered to military families that can help with estate planning. These include:

Life Insurance

An important part of an estate plan and intended for those who are financially dependent upon you, life insurance is especially important if a member of the military is heading out to a combat zone. Active-duty members have access to low-cost life insurance for themselves and loved ones from Service Members’ Life Insurance Group. More information can be found on the Department of Veterans Affairs website. When examining your life insurance, work with us to make sure that the beneficiary designation works the way you expect it to.

Wills and Trusts

A last will and testament to whom and how you want your property distributed, names who will administer your estate and specifies who will care for a minor or special needs child. A trust, on the other hand, is a separate legal entity that can hold property and assets for the benefit of one or more people or entities. For most families, a trust-centered estate plan is a better fit, but a will can work for some families.

Other Benefits for Survivors

Survivor benefit plans (SBP) are pension-type plans in the form of an annuity that will pay your surviving spouse and children a monthly benefit. Likewise, dependency and indemnity compensation (D&IC) provides a monthly benefit to eligible survivors of service members or veterans (1) who die while on active duty, (2) whose death is due to a service-related disease or injury or (3) who are receiving or entitled to receive VA compensation for service-related disability and are totally disabled. When you are examining any financial services or insurance product, it’s a good idea to work with us to make sure any beneficiary designations work the way you expect and provide the maximum benefit to your family.

You Need Specialized Help 

Members of the military often experience frequent moves, have access to lots of government benefits after service, and can be subject to some unusual tax rules. For these reasons, estate planning for military families is more complicated than most. You can expect an estate planning professional to assist you with setting up the following:
  • Powers of attorney for limited and general financial matters, as well as health care decisions (very helpful when a spouse is deployed);
  • Funeral and burial arrangements;
  • Wills and living wills;
  • Organ donation;
  • Family care plans;
  • Life insurance;
  • Trusts;
  • Estate taxes;
  • Survivor benefits;
  • Estate administration and/or probate.
An estate plan has multiple objectives: to provide for your family’s financial security, ensure your property is preserved and passed on to your beneficiaries, and determine who will manage your assets upon your death, among others. As a former United States Marine, I am here to help guide you through the best options available to you and your family. Contact us to start creating an estate plan today!

3 Reasons To Modify An Irrevocable Trust

Irrevocable trusts in Las Vegas

Did you know that irrevocable trusts can be modified? If you didn’t, you’re not alone. The name lends itself to that very belief. However, the truth is that changes in the law, family, trustees, and finances sometimes frustrate the trust-maker’s original intent. Or, sometimes, an error in the trust document itself is identified. When this happens, it’s wise to consider trust modification, even if that trust is irrevocable. It’s important to know when to modify an irrevocable trust.

 3 Reasons You Should Modify an Irrevocable Trust

Here are three examples of when an irrevocable trust can, and should, be modified or terminated:

1. The Tax Law Changed

Adam created an irrevocable trust in 1980 which held a life insurance policy excluding proceeds from his estate for federal estate tax purposes.  Today, the federal estate tax exemption has significantly increased making the trust unnecessary. 

2. Your Family Circumstances Changed

Barbara created an irrevocable trust for her grandchild, Christine. Now an adult, Christine suffers from a disability and would benefit from government assistance. Barbara’s trust would disqualify Christine from receiving that assistance.

3. An Error Was Discovered 

As part of his estate planning, David Sr. created an irrevocable trust to provide for his numerous children and grandchildren. However, after the trust was created, his son (David Jr.) discovered that his son (David III) had been mistakenly omitted from the document. 

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Are You Sure Your Irrevocable Trust Is Current?

If you’re not sure an irrevocable trust is still a good fit or if you wonder whether you can receive more benefits from a trust, we’ll analyze the trust. Perhaps irrevocable trust modification or termination is a good option. Making that determination simply requires a conversation and a look at the document itself. Please call our office now to schedule a chat. We are here to help you with when to modify an irrevocable trust.

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10 Estate Planning Tips

Life has too many “what-ifs” to be able to plan for every conceivable situation you might encounter. In spite of this, it’s still possible to create an effective estate plan that will not only anticipate your death and/or disability but do so in a way that will enable those you love to focus on your legacy, rather than your estate plan. Check out these 10 estate planning tips!

10 Estate Planning Tips For Creating an Effective Estate Plan

  • Get A Financial Power Of Attorney
    • Give the power of attorney over your financial matters to someone you trust. This person should also have the education or life experience to make sound financial decisions on your behalf, in the event you become incapacitated.
  • Find A Healthcare Power Of Attorney
    • For most of your life, you are far more likely to be temporarily incapacitated or disabled than you are to die. For this reason, a comprehensive estate plan will give the power of attorney to someone for health care decisions. It is a very good idea to give someone the power to act on your behalf in the event you are unable to make decisions for yourself.
  •  Do A Regular Inventory and Correctly Title Your Assets
    • You have spent your whole life, up to this point, working to acquire assets that will support you, and possibly your children after you die. Regularly inventory and carefully title your various assets. Designate beneficiaries for your annuities, insurance policies, and retirement plans. You should bear in mind that anyone whose name appears on the title of an account, policy, or retirement plan will have the authority to access and use the funds on your behalf.
  • Have a Will In Place
    • Have a legal will prepared that properly disposes of your assets. A will can also nominate legal guardians for your children to provide for their care, upbringing, and education in addition to managing their inheritance.
  • Take Advantage of Protections From Creditors
    • Take advantage of protections that are available, as a matter of right, by law to protect certain basic property rights. For example, some assets (e.g., 401(k)s, most IRAs, and your primary residence) are protected by state law; therefore, they can’t be taken by a general creditor to satisfy your obligations.

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Estate Planning Tips Continued…

  • Use Revocable Living Trusts
    • Use trusts to hold assets and settle your estate. A trust is an effective way to avoid the probate process that can be lengthy and needlessly expensive. Most people should eventually use a revocable living trust as the centerpiece of their estate plan.
  • Understand Irrevocable Trusts
    • Instead of leaving inheritances directly for your children, use an irrevocable trust. This can help you avoid claims against the inheritance from debts, divorce, disability, and destructive spending habits. In addition, there are dozens of purposes for irrevocable trusts created for favorable income, estate, and gift tax results and, when used correctly, protection of assets.
  • Seek The Help of Financial Advisors
    • Seek professional advice from attorneys, bankers, financial planners, and insurance brokers as you see fit. It’s never too early to start planning for your financial future. In order to be a good steward of your assets, find a good financial advisor with the help of family and friends, and trusted professionals.
  • Periodically Review and Revise
    • Effective estate planning is a lifelong activity. Tragedy could strike at any time. As we have seen, laws, your family circumstances, and the makeup of your own wealth will change over time. It is critical to review and update your estate plan on a regular basis to ensure that the best possible protections are being utilized.
  • Take Time To Ponder
    • Family dynamics change all of the time and in lots of different ways. Think of charitable causes you are committed to or care about. Charitable giving is one tool an effective estate planner has in the tool belt to reduce or eliminate taxes that the estate, or loved ones, will have to pay when you die. Financial circumstances can change rapidly. Your legacy will reflect the time and thought you have invested in creating and maintaining your estate plan.

Use These 10 Estate Planning Tips To Get Started

An estate plan that is out of date, can be just as harmful as not having one at all. It is essential to maintain your estate plan so your legacy, and not estate planning deficiencies are what will be remembered. If you regularly follow the above ten timeless tips above, your estate plan will remain healthy and effective to accomplish what it was created for.

Contact the attorneys at Williams Starbuck to help you with your Estate Planning needs today!

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Military Will and Estate Planning in Las Vegas

What Is Military Will and Estate Planning

In many ways, creating a customized estate plan for a single, or married member of the active duty or reserve branches of the United States military, can be similar to creating a will, trust, or estate plan for wealthy and non-military individuals or families. However, when it comes to military personnel, there are considerations that are unique to members of the military that must be accounted for and planned for.

When developing a military estate plan keep in mind and take an inventory of everything that is personally owned.  This can include property, a car, and even a savings account.  Once the assets have been identified, we can then help you answer questions such as:

  • What happens to my property?
  • Who will oversee my finances?
  • How will my family be affected financially?

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Why Williams Starbuck Can Help You With Military Will and Estate Planning in Las Vegas

Because of my service in the United States Marine Corps Reserves, I am both familiar with the considerations that are distinctive to military members, and able to relate to you and your situation while we work together to ensure your estate plan is properly set up, and all aspects and scenarios are contemplated and planned for. 

In cases where you own a home, have investments, or your estate consists of other classes of assets, the base legal office may not be able to adequately assist you with the proper tools and documents you need to ensure that your estate avoids probate, and seamlessly transitions to your loved ones.

Contact Williams Starbuck For More Information About Military Will and Estate Planning

If you are a member of any branch of the United States Military, on active duty, or on reserve and you have questions regarding asset protection or other estate planning matters and how they might affect you, call us at 1-720-660-9847 or send us a message for a free consultation.