Estate Planning Case Example

John and Mary have been married for 40 years. They had a Last Will and Testament written by their family lawyer when their children were young. Now their children are grown and John and Mary are grandparents. They have heard that there is a significant delay associated with probate, and they would like to explore the possibility of establishing a trust to avoid probate. They have a home worth $300,000 with a small mortgage on it, $50,000 in a certificate of deposit and $10,000 in the family checking account. John has a 401(k) with his work. Their children are on their own and independent and their grandchildren are a very important part of their lives. They would like to avoid probate and would also like some help handling their affairs as they age.

John and Mary met with Attorney Jim Normand who recommended that they consider executing a revocable trust. Through a revocable trust they create an actual legal entity into which they are able to transfer title ownership to their home, the certificate of deposit, the bank accounts, and their personal belongings including their automobiles. By establishing the trust and transferring these assets into the trust, after John and Mary die, their children will NOT have to go to probate to transfer these assets. The assets will be held by the trust, and the trustee that John and Mary established will be able to make the transfer of the assets to whomever John and Mary selected in the trust.

Additionally, as they aged, they were able to name their oldest daughter, Sarah, as an alternate trustee. That way, if in the future either John or Mary passes away or one or both becomes ill, Sarah can help with their financial affairs without the necessity of going to court to be appointed guardian. After John and Mary die, their property can be transferred by Sarah to John and Mary’s children and grandchildren. Since some of the grandchildren are still young, John and Mary are able to keep their money in the trust to be used to help their grandchildren with their college education. The cost of adopting the trust was not significant and it simplified the administration of John and Mary’s estate.

No one likes to think about their own death, but it’s imperative to have your affairs in order. The attorneys at Normand | Higham can help you take care of your loved ones to give you the peace of mind you deserve.