Friday, January 27, 2012

Trusts should look after potential "special needs beneficiaries"

I can’t go into detail about ongoing personal developments, but I can say something general I have learned about what is considered good practice when single or childless (or people without dependents) make up living trusts and will their estates to it.

Although one may wish to distribute monies to charities or civil liberties organizations, one will name an executor, and in some states, that executor must live in the same state (or possibly within a certain distance). Some states have also dropped that requirement. (Executors are required to file statements if they have probate appointments at some point.)   It’s considered good form to write the distribution instructions as to take care of the executor and associated family if any of them become “special needs” within a certain time frame related to one’s own passing.  The point is the money would then help pay for the executor’s long term care (before going to charity) if ever necessary, and that, in these days, is coming to be viewed as “socially responsible”.   If that need doesn’t develop, however, the money does go to the charities.

More on this later. 

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