Estate Planning Services
Question: Jack "needs to do something" regarding his estate planning. He just hasn't had the time to think about a will. Under Missouri law, if he dies without a will one-half of his estate plus $20,000 goes to his wife and the balance goes to his children. Jack doesn't know if this "default plan" will adequately serve his family's needs in the future. What should Jack do?
Answer: Jack could make a will that sets out precisely how his assets are to be distributed when he dies. In this manner, Jack can provide the financial security his family will need when he is gone.
*******************************************************************************
Question: Jack's will is over 15 years old. In his will, Jack has named his wife, Jill, to serve as his personal representative (executor). Jill was certainly qualified to administer the modest estate Jack had when the original will was drafted. Jack still wants Jill to have input into how his estate is administered, but he is concerned that because of the size and complexity of his estate (he now has a business, real estate holdings, stocks, bonds and a retirement plan) that administering his estate may require a professional. What should Jack do?
Answer: Jack can amend his will or trust and add a professional co-personal representative (executor) or co-trustee (such as Southwest Missouri Bank) to assist Jill. Jill could then still have input into how his estate is administered, but the professional co-personal representative or co-trustee can perform the burdensome tasks of the estate settlement for Jill.
*******************************************************************************
Question: Jane is divorced and has two children. One of her children, John, has failed in every economic endeavor he has attempted. John is always in debt and his creditors have filed lawsuits to collect their accounts. Jane is distraught because she wants to leave her estate equally to all of her five children, but she fears that John will waste any inheritance Jane leaves him. What should Jane do?
Answer: Jane can set up a revocable living trust or testamentary trust for the benefit of John. The trustee can manage John's trust, pay him a regular income and in this way help John manage his financial affairs and keep his creditors at bay. In addition, if Jane so provides, the trustee can pay John trust principal under circumstances spelled out by Jane in the trust. Jane can make outright distribution to the other child of his share.
*******************************************************************************
Question: Jack and Jill's 7 year old son, John, was seriously injured in an automobile collision. John will soon receive a settlement of $2 million for his injuries. Jack and Jill do not know how to handle John's money for him to ensure he has a "nest egg" when he grows up. What should they do?
Answer: Jack and Jill can set up a conservatorship or a special needs trust enabling the appointment of a professional trustee or conservator to manage John's funds, who is answerable not only to John, but to the court. In this way, the trustee or conservator can invest the money and pay taxes, pay for John's needs, account to John, John's guardians and the court for all income and expenditures. When John grows up, he should have a sizeable "nest egg."
*******************************************************************************
Question: Jack and Jill have named one another sole beneficiary under their wills. On the death of the survivor, their children will receive what is left. Jack and Jill have done well in their business ventures and they fear expenses of probate and federal estate taxes will dramatically reduce how much their children will ultimately receive after their deaths. What should they do?
Answer: Jack and Jill can set up revocable living trusts to totally avoid probate expenses and avoid or minimize the overall federal estate tax exposure.
*******************************************************************************
Question: Jane is a widow with two children. She wants to leave her estate to her children, but she also wants to leave something of significance to her favorite charity. What should she do?
Answer: Jane can set up a charitable remainder trust whereby she can provide her children with income during their lifetimes. At the end of the children's' lifetimes the remainder would then go to her favorite charity.
*******************************************************************************
The Southwest Missouri Bank Trust Department can help you with these situations and many others. We will sit down with you, learn the "big picture" of your assets and goals and help you develop an estate plan that works for you, but most importantly, one with which you feel comfortable. We are but a telephone call away. Call today for a no charge, no obligation review of your estate plan or circumstances. Together, we can get you where you want to be.
