Page 78 - Successor Trustee Handbook

CHAPTER 21

YOUR (AND THE BENEFICIARIES') OWN ESTATE PLAN

Acting as Trustee without having an estate plan of your own is like being cobbler
without shoes. Obviously, you should have your own estate plan to protect you and your
loved ones in the event of your own disability or death.

The only area of estate planning that may be required of you in order to properly serve
as Trustee may be executing a HIPAA Authorization. This permits access to your personal
health and medical information, in the event that you have difficulty serving as Trustee,
so that the next Trustee may take the necessary actions to replace you. Even if this
HIPAA Authorization is not an actual requirement in the Trust document, it may still be
advisable provided that the Successor Trustee’s access to your health and medical
information is limited for the purposes of determining your legal capacity to act as
Trustee. (See the Chapter, “Transition to Another Trustee”).

As for the rest of your estate plan, it’s a prudent idea to get one established and in
proper order, regardless of whether it is required in order for you to serve as Trustee.
Most likely, you should have a basic estate plan consisting of a Living Trust, Pour Over
Will, Durable Power of Attorney for Property, Property Agreement (if married) and health
documents (“Advance Healthcare Directive” or “Durable Power of Attorney for
Healthcare” and “Living Will”). Depending on the size of your own estate (keeping in
mind any amounts that you may stand to inherit under the Trustor’s Living Trust), the type
of your assets and needs of your beneficiaries, additional “advanced” estate planning
may be warranted, such as an Irrevocable Life Insurance Trust, Gifting Trust, Personal
Residence Trust, Charitable Remainder Trust, and Family Limited Partnership, to name a
few.

Remember, even if you have done some or all of this estate planning for yourself, be
sure to periodically review it! Your estate plan may no longer accurately reflect your
wishes and intentions, because it can become outdated as a result of law changes,
changes in the needs and situations of your beneficiaries (or changes in your
relationships with them), and new planning strategies. Whether you have an estate plan
already, or you would like to set one up, contact Family First Firm for a free initial
consultation, if you qualify. Each Trust beneficiary should probably go through the same
process of establishing (or reviewing and revising) their estate plans.

With respect to the beneficiaries (and you may also be a beneficiary as well
as Trustee), there are two immediate estate planning actions that need to be
taken that do relate to the administration of the Trustor’s Living Trust.

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