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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 33798
Experience:  15 yrs estate law, real estate. Wills/Trusts/Probate
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I am doing a revocable living trust but am told I must know

Customer Question

I am doing a revocable living trust but am told I must know the exact % allocation and name of all beneficiaries at this time unless I am willing to create an irrevocable trust to disburse the proceeds. I am recovering from a stroke & have not decided this yet-- I want to help special causes but am unsure of details yet. How can I proceed w/ the revocable living trust w/ my situation?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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If you are unsure exactly who you want to name as a beneficiary of the trust assets, you can insert a "special power of appointment" or a "general power of appointment" in the trust that gives the trustee the discretion to divide up the assets of the trust and distribute them to either a set class of beneficiaries (special power of appointment) or give the trustee the power to distribute the assets to anyone they choose to under a general power of appointment.
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Then when you finalize any specific instructions regarding beneficiaries, you can have an Amendment to the trust drafted that specifically names beneficiaries that you want to receive the assets of the trust in whatever percentages or amounts that you desire.
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So you don't have to name a specific beneficiary in order to have a trust prepared. You just need to have it drafted, fund it with assets transferred to it, and then give the trustee either a special or general power of appointment initially. Then you can amend the trust later as your plans and wishes solidify.
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thanks
Barrister
Customer: replied 1 year ago.
The answer did not come up on my email until now.Just Answer did not transmit it though I said it was high priority. I checked my email several times.
The original lawyer i clicked on wanted more details but Just Answer would not allow me to add details. Are you that lawyer?He seemed older.The details of my situation are: I have 2 sons who are also my trustees. Both are too busy to be family to me despite my being disabled ans in pain, needing help, and having had 4 strokes in the last 2 years.The younger disregards ***** ***** not help, just uses my home, getting a free ride. He is 21. The older one is 38,lives in LA (I live in NV), is more caring, but is still too busy w/ his life and I seldom see him though we talk regularly on the phone.He is my primary successor trustee;the younger one is the 2nd successor trustee.Therein lies the problem.The trustees are the beneficiaries.So giving them general or specific power of atty to decide on % distribution to themselves would be conflict of interest; i need to make that decision.I wanted to teach them, esp the younger one, a lesson so they would be more caring. They assume they are entitled to the estate , being my only 2 children. But if they are too busy making money to make time for me,despite my illness, they should not be rewarded for their indifference. I wanted to distribute my assets to others also, not just divide these between my 2 sons.For allocation of my estate I wanted 5% to go to the younger one, 10% to the older one, and the balance of 85% to a special fund eg the Maria M Fund or Project or whatever which would be an umbrella fund for emergencies,special charities,& further distributions to my sons, w/ allocation dependent on their behavior and caregiving to me. I am unsure of details yet..but my atty says it is not possible to have a Fund as a beneficiary though earlier he said it was ok to leave a special % as an emergency fund which could stay active for 3 months or so but which afterwards needed to be distributed outright. I need time to rethink things.My atty proposes a dynasty trust for gradual distribution of assets but due to my strokes , constantly changing life situation and nonsupport from my sons....an irrevocable dynasty trust won't work.Could I go online and create an LLC as a 3rd beneficiary, as a holding co, rather than do a specific % allocation right now, eg 10/90 to my sons as my atty wishes,,,...since a Fund or Project is not acceptable as a 3rd beneficiary even if i create a specific bank acct for it? I dont want anything complicated.I want to give the younger son more chances to redeem himself , though I have given him a lot of chances already, and to give the older one a chance to put family above business. The initial 5%/10% allocation will remain;but out of the balance of 85% Special
Project or Fund or whatever.....which could include distribution to others, allocations to my sons could be better depending on their behavior.I want to do what is fair; not what is expected. I want it to be simple.I don't want to cause hostilities.I have major health challenges and need to focus on them and avoid stress.The atty doing my trust has a cookie cutter approach....and has been patiently waiting for 3 months now.
I want the funding to happen now but my inability to get a satisfactory 3rd beneficiary is holding things upHe has a questionnaire I need to fill out online, then i need to upload the trust deed of my home w/ this questionnaire & submit to him. I also have a NV LLC which owns 2 Calif rentals & 1 NV rental. All I need to do is give him the name of the LLC; I don't need to upload the trust deeds of those properties. I have a life insurance & some IRAs which I probably should keep out of the trust. Current value of my estate is less than $2Million.He will give instructions on how to fund the trust; there will be a pourover will, no contest clause,
Power of atty, etc.Your advice? Thanks.
Expert:  Barrister replied 1 year ago.
""The original lawyer i clicked on wanted more details but Just Answer would not allow me to add details. Are you that lawyer?He seemed older.""
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Sorry no, you originally requested an attorney who was not online on the site at that time. Once a request isn't answered for a particular attorney in 15 minutes, JustAnswer doesn't want customers to wait indefinitely so they open the question up. So I was able to respond to you 19 minutes after you posted your question..
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After reading your comments, the simplest solution jumps out at me...name someone else as the original trustee of the trust and just name sons as successors if something happens to the original trustee. That way you have someone, not a son, who is in charge of the purse strings and if you put in the general power of appointment he can decide who gets what. If you put in a "special power of appointment" you could limit the class of beneficiaries to a certain class of A, B, C and D for example, then the trustee decides how much each person or entity should receive.
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If the trust is irrevocable, you can always change it later with an Amendment that just has to be written, signed and dated by you, and notarized. That is it. Then you attach the Amendment to the Trust document itself.
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So it is very easy to amend a trust should you decide on a change later.
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thanks
Barrister