A Family Trust Can Prevent Conflict and Keep Order, but Only If You Let It
You often feel that you are the only thing that keeps your whole family from descending into chaos, even though it is not possible to test your hypothesis while you are alive. You bankroll your entire family, and to show their gratitude, they attend family gatherings only when they feel like it and occasionally take a break from antagonizing each other, but only when the stars align. If you die intestate, your closest relatives will inherit your money; they will burn through it quickly and then be broke, friendless, and miserable, but at least it will not be your problem anymore. You can write a will, perhaps leaving some of your property to other people besides your closest relatives, or dividing your estate among your children according to each one’s need instead of equally, but they would bicker in probate court until there was nothing left for any of them to inherit. Therefore, you have found the perfect solution by establishing a trust, which is immune to the vicissitudes of probate. What’s that you say? Your family is so dysfunctional that it can even sow chaos with a trust? If that is the case, then you should set the terms of your trust carefully with the help of a Bronx estate planning lawyer.
The Art of Kicking a Trustee to the Curb
Estate planning lawyers will tell you at every opportunity that a trust is better than a will. A will can only implement your wishes under the watchful eye of the probate court, which adds piles of unnecessary red tape. By contrast, when you establish a trust, you are the boss, and the probate court cannot get in your way. The trustee simply does what you instructed him or her to do in the trust instrument.
Meanwhile, the courts have jurisdiction to rule on many kinds of disputes between individuals, including between the trustee of a trust and its beneficiaries. For example, if the beneficiaries believe that the trustee is breaching his or her fiduciary duty by mishandling the assets in the trust, they can sue the trust or its trustee. If the lawsuit requests this, the judge can even order the removal of the trustee from his or her role.
Set Clear Expectations for Trustees and Beneficiaries in Your Trust Instrument
As with all estate planning documents, the more detail you include in your trust instrument, the better. As with all legally binding documents, the dispute resolution clauses in a trust instrument are the most important part. For example, you can indicate that it is possible for the beneficiaries to remove the trustee by a unanimous vote. If you say this, then you should also list successor trustees.
Schedule a Confidential Consultation With a Bronx Estate Planning Attorney
An estate planning lawyer can help you draft an airtight trust instrument, if you know that the beneficiaries of your trust are incapable of getting along with anyone. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
law.justia.com/codes/new-york/ept/article-7/part-2/7-2-6/