|
Understanding the Will
It is very important to read and understand the
will or trust so that you will know:
- who the beneficiaries are;
- what they are to receive and when
- how many years the trust will be ongoing; and
- who, if any, are your co-fiduciaries
Does the will give everything outright, or does
it create new trusts that may continue for several years? Does
a trust mandate certain distributions ("All income earned each
year is to be paid to my wife, Nancy") or does it leave this to
the trustee's discretion ("My trustee shall distribute such income
as she believes is necessary for the education and support of
my son, Alan, until he reaches age 25")? The document often imparts
important directions to the fiduciary, such as which assets should
be used to pay taxes and expenses; and the document will usually
list the fiduciary's powers in some detail.
Most fiduciaries retain an attorney who specializes
in the area of trusts and estates to assist them in performing
their duties properly. An attorney's advice is very helpful in
ensuring that you understand what the will or trust and applicable
state law provides.
|
