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trust administration

What are the benefits of using a corporate trustee?

By Asset Protection Planning, Estate Planning, Probate

The decision of who to name as trustee of your Trust is an important one. An option available to you when making this decision is to designate a corporate trustee, a company that will manage the assets in your trust in place of an individual trustee. Some of the advantages of choosing a corporate trustee include:

-Corporate trustees typically have extensive experience managing Trusts

-Corporate trustees are not as susceptible to emotional influence when managing Trusts as family members might be

-Using a corporate trustee removes the potential for conflict among family members who want to be named individual trustee

-Corporate trustees generally have considerable resources available to them when managing Trusts that individual trustees might lack

That said, there are, of course, several disadvantages to choosing a corporate trustee over an individual one. Examples of these are:

-Corporate trustees are often more expensive than individual trustees

-Corporate trustees might not be as familiar with your exact situation as an individual trustee might be

-Corporate trustees might not account for the emotional ramifications of asset management decisions to the extent that an individual trustee might be

Whether you name a corporate or an individual trustee, it is important to name a successor trustee in the event that the one you named is not able to serve. For help drafting a Trust, or to review an existing Trust, please call the elder law and estate attorneys of Bach, Jacobs & Byrne, P.A. at (941) 906-1231 to set up a consultation.

February 21, 2019
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“It’s All Greek to Me”: Settlor vs. Grantor vs. Trustor

By Estate Planning

We turn to Florida Statute §736.0103 for the legal definition of “settlor”: “a person, including a testator, who creates or contributes property to a Trust.” Florida Statute §731.201 defines “grantor” as: “one who creates or adds to a Trust and includes ‘settlor’ or ‘trustor’ and a testator who creates or adds a Trust.”

Do the terms seem confusingly similar? If so, it is probably because “settlor,” “grantor,” and “trustor” all have the same basic meaning: the person who creates a Trust. Today, one might even come across the word “trustmaker,” which – you guessed it – also means the same thing.

            If you are a settlor, grantor, trustor, or trustmaker (or hope to be someday) and would like help preparing or reviewing your estate plan documents, please call the attorneys of Bach, Jacobs & Byrne, P.A. at (941) 906-1231.

January 24, 2019
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What is a “pour-over” Will?

By Asset Protection Planning, Estate Planning, Probate

A “pour-over” Will is usually created by individuals who hold most, if not all, of their assets in a Trust. The reason one might maintain such a document is to account for overlooked assets in the estate planning process – if one wishes for all his/her assets to be held by the Trust after death and inadvertently forgot to transfer some assets to the Trust, the pour-over Will directs those assets to be transferred to the Trust.

The assets in a pour-over Will still have to go through the probate process (unlike the assets already in the Trust). However, it is still wise to have a pour-over Will, as it will avoid intestate probate and provide clarity and direction with regard to your estate plan.

Do you need to make a pour-over Will? Do you need to review your existing estate plan to make sure it aligns with all your wishes? Contact Bach, Jacobs & Byrne, P.A. today at (941) 906-1231 to set up an appointment.

January 4, 2019
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What is Florida’s “Prudent Investor Rule” regarding trust administration?

By Estate Planning

Florida has requirements on how a fiduciary is to manage and invest the assets of the Trust that the trustee administers.

Florida has adopted what is known as the “prudent investor rule,” which aims for a more balanced approach to the investment of assets in a Trust. Florida Statute §518.11 sets the terms as follows:

“The fiduciary has a duty to invest and manage investment assets as a prudent investor would considering the purposes, terms, distribution requirements, and other circumstances of the Trust. This standard requires the exercise of reasonable care and caution and is to be applied to investments not in isolation, but in the context of the investment portfolio as a whole and as a part of an overall investment strategy that should incorporate risk and return objectives reasonably suitable to the Trust, guardianship, or probate estate.”

The statute goes on to clarify that no specific investment can be designated as prudent or imprudent, and that the investments in the portfolio must be kept diverse by the fiduciary.

August 27, 2018
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