The Scaries of Estate Planning (Halloween Edition)

Estate Planning can be scary when big events in your life creep up on you. Here are some examples: you recently got married, you open escrow on your new home, or you just had a baby! Significant life events happen at various times throughout our lives, and it is essential to prepare for your future, and the future of your loved ones. The best way to prepare is through your Estate Planning.

Let’s face it, planning for after your death is often a scary thing to think about. Our morality is inevitable. And, as scary as it may be, you will not always be around to take care of your loved ones. However, you can take care of and support your loved ones through a comprehensive Estate Plan created during your life.

It is important to remember that your planning will give your loved ones’ peace of mind. Estate Planning can be a seamless process that takes away the haunting feeling of things left undone.

At Tresp Law, APC our attorneys make it a priority to ensure our clients’ satisfaction and peace of mind during the Estate Planning process. They are willing to go above and beyond to ensure you are taken care of. Call us any time at 858-248-2779 for a free consultation.

Should I Name a Private Fiduciary in my Trust/Will?

When estate planning clients come to me, they have many decisions to make, but by far the most important decision is the selection of their trustee or executor.

 This position, which we will generically call a fiduciary, is the most important because the fiduciary is entrusted with the power to control and distribute the assets of the Decedent’s estate to the beneficiaries. A fiduciary must be financially responsible, look out for the best interest of the beneficiaries, and ensure the Decedent’s wishes are fulfilled.

 The most common occurrence we see in our practice is for clients to list their child(ren) in the fiduciary role. This may be logical and, often, the best choice for many families, but all families, clients, and the relationships between them are different.

Here are some common situations where choosing a child or family member would not work:

·      Client does not have a family to serve.

·      Family member is not financially responsible.

·      Multiple children and do not want to choose between them.

·      Fiduciary choice is also a beneficiary.

·      Does not want to burden the family with duty.

·      Concerned about fighting between the beneficiaries.

·      Would like to keep assets in trust for an extended period.

All of these situations can be resolved by appointing a private fiduciary in your documents.

Private fiduciaries are licensed and bonded professionals who are registered with the State of California and have passed an exam to prove their ability to serve as a fiduciary. Much like corporate fiduciaries who work at banks and other financial institutions, private fiduciaries are often independent operators.

 Estate planning involves many choices, but choosing a fiduciary is the most important. In your consultation, ask our attorneys whether a private fiduciary is right for you. Many clients have told me it was the best decision they made because it assures them their wishes are followed without worrying about the actions or inactions of their family members. 

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The Importance of Protecting Those who once Protected Us

Watching your loved ones grow old can be difficult. Taking care of those who once took care of you may seem strange and unnerving. Often, we entrust our elders to the care of someone we believe to be dedicated to protecting them, whether that be the nursing home you picked out for them or a trusted family member.  Unfortunately, despite all the precautions one might take, elder abuse is a frequent crime that impacts the lives of nearly 5 million elders each year. ¹

Elder abuse is an often misunderstood term. Legally, any type of mistreatment that induces harm, whether that be physical, mental, or financial, to an individual 65 years of age and older is “elder abuse.” As you can see, based on that definition, elder abuse is very common. But, according to the National Council on Aging, only 1 in 14 cases are reported to authorities and in about 60% of elder abuse cases, the perpetrator is a family member. ²

The elderly are particularly susceptible to mistreatment for a variety of reasons. Vulnerability is the leading cause of this form of abuse. Cognitive decline, social detachment, generational wealth, and frailty all are some of the reasons elderly people become a target for mistreatment. 

 Financial Elder Exploitation occurs when an individual knowingly takes assets from an elderly adult (65+) with ill-intent This often occurs when the elder has no knowledge of what is going on or when they have been manipulated into a situation where they feel this is their only choice.

It is reported that financial exploitation costs elders in America nearly $2.6 billion dollars every year. ³

The following are some red flags where Financial Elder Exploitation may be occurring:

●      Signatures on checks that do not resemble the elder’s signature

●      Legal documents signed by the elder when he or she is physically incapable of writing

●      Inappropriate or unusual banking activity

●      Sudden changes being made to wills or trusts

●      Adding new individuals to private accounts

●      Long-lost relatives or new friends spending time with the elder

●      Missing cash or jewelry

At Tresp Law, APC we are committed to protecting those who find it difficult to protect themselves. You do not need to be a family member in order to pay attention to these signs. If you suspect that this is happening to you or someone you are close to, contact us today for a consultation.

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¹ “Elder Abuse Statistics & Facts : Elder Justice.” NCOA, 15 June 2020, www.ncoa.org/public-policy-action/elder-justice/elder-abuse-facts/.

² “Elder Abuse Statistics & Facts : Elder Justice.” NCOA, 15 June 2020, www.ncoa.org/public-policy-action/elder-justice/elder-abuse-facts/.

³ MetLife Mature Market Institute, The National Committee for the Prevention of Elder Abuse, The Center for Gerontology at Virginia Polytechnic Institute and State University. Broken Trust: Elders, Family & Finances (PDF).