The attorneys of JGB are humbled that so many of our clients choose to select us to act as their disability/death Trustees in their estate plans. We find that this is done for many reasons, some of which are: 1) the client wishes an impartial professional to handle settling the trust/estate in order to avoid in-fighting amongst beneficiaries; 2) the client does not have anyone they are confident in or that is locally situated to deal with the fiduciary responsibility of assisting the client if they become incapacitated or to settle the trust/estate upon death; 3) the client’s family is too busy with their own lives to administer the responsibilities of being a Trustee during a disability or death event; or 4) the client feels more secure in knowing that there is the bench-strength of an entire team of professionals to assist them during incapacity and to settle the trust/estate upon their death. Whatever the reason, the attorneys of JGB stand ready to provide fiduciary services to clients who do not wish to place that work and responsibility upon their friends and family.
Over the years of being a successor disability/death Trustee in client documents, clients have asked, “What should I do to prepare for you taking over as Trustee.” This is the impetus for this article (along with the fact that I am sitting at home recovering from having my leg broken in three places).
Every case is unique and distinct; as such, there may be certain things that one trust/estate needs to do in preparation that others may not. However, there are baseline preparation items that usually apply to all trusts/estates.
Funeral/Memorial Instructions
Be certain that your JGB attorney has copies of your funeral/memorial instructions. All JGB clients are provided with a form in their estate planning portfolio to identify their wishes regarding this item. If you take additional steps and secure funeral/memorial preplanning services, provide a copy of that contract and related information to your JGB attorney. Be certain to identify whether your funeral/memorial preplanning was all prepaid or not.
Property Access
Your JGB attorney will require access to your real property if they are to assist you in a disability/death event. To that end, you should provide your JGB attorney with either a copy of the key to any real property they will be responsible for or the keypad code if you use an electronic lock system. In addition, your JGB attorney should also receive any alarm system deactivation information that may be applicable. If you live in a gated community, check to see if you need to put your JGB attorney on a permanent ok-to-enter list with the front gate.
Property Insurance/Utilities/HOA
It is extremely helpful if you provide your JGB attorney with a written list of any property insurance, utilities, and HOA information that you can consolidate to include contact information, account numbers, billing style and frequency, etc.
Life Insurance
Make certain you provide you JGB attorney with copies of the life insurance policies and related contact information so that the claims on those policies may be submitted immediately after your death. This will help ensure trust/estate liquidity early in the administration process.
Financial Statements/Credit Cards/Mortgage/Car Loans or Leases
Likewise, providing your JGB attorney with the names of your banks, investment firms, and creditors is extremely helpful. Again, this list should include contact information, account numbers and any other specific details that you believe may be helpful for your JGB attorney to seamlessly step in for payment and management purposes upon your disability or death.
Family/Friends
Having a list of the family and friends that you would like your JGB attorney to be able to reach if something happened to you is crucial. This list should include full legal names, current addresses, phone numbers and email addresses, as well as the person’s relation to you. It is also helpful to inform your JGB attorney if there is anyone you do not want involved if you have a disability or death event.
Pets/Livestock
For many of us, our animals are also part of our family. Therefore, foryour JGB attorney to take the appropriate care of any of your animal dependents, please make certain you provide us with any relevant information that may help in this regard, including the contact information for any veterinarians you may use, their medication, name(s) of a particular family member or friend that you would be ok allowing your fur baby to go to either temporarily or permanently. For larger animal family members; such as horses, it is important to know where they are stabled, who we can contact to make certain they are being fed and cared for in the interim, and where your horse should be allowed to go if something happens to you (and does that reasonably allow for a payment to your trust/estate or would your trust/estate need to pay someone to take the animal).
Collectible Items/Firearms/Personal Effects
It is amazing how quickly tangible items grow legs and walk away when a client has a disability or death event. This is why the first item discussed above was being able to enter real property; not only to make certain that we can get to important items, but also to secure the property from loss. If you have valuable items, be certain to disclose this information to your JGB attorney as well as their location. If these items are secured in a safe or another form of locked security device, your JGB attorney will need to know how to access these items. If these tangible items are difficult to value; providing your JGB attorney with a list of how you established the values as well as any known resources in the collectable community in which the items belong that may be able to be an option for valuation or sale of the item is extremely helpful. Firearms are particularly subject to abuse on many levels during a disability/death event. These abuses can include theft of the firearms that are not secured properly, and sellers being taken advantage of buying a slick buyer who knows the firearm(s) they are purchasing are worth much more than what they are paying for them. Fortunately, your JGB attorney has resources at their disposal that the firm has compiled over the years to combat these types of issues. However, any additional information you have may make the difference between that item bringing a marginal to great value for the benefit of the trust/estate in its liquidation, if necessary.
Vehicle/Boat Titles and Vehicle/Boat Locations
It is important that your JGB attorney has copies of your vehicle/boat titles and knows where you normally “garage” said vehicles/boats. This is extra important when you have property in multiple states. It is good to know that your BMW is in Williamsburg, but also that your Ford Mustang is in Charleston. In addition, if you have specialty vehicles such as RVs, trailers, aircraft, or submersibles, providing your JGB attorney with as much information about the ownership documentation, registration, value, and other peculiar or specific issues relating to said specialty vehicles is necessary.
Minor Dependents
If you have minor dependents, it is critical to provide your JGB attorney with the name and contact information of your guardian nominated in your estate plan. In addition, make certain that your nominated guardian has your JGB attorney’s contact information. If that nominated guardian is not local, make sure we have information on who you would allow the minor dependents to stay with temporarily until the nominated guardian can physically arrive. It is also a good idea to have a file at home ready for your nominated guardian that includes medical information for the minor dependents to include contact information for any doctors, dentists, and counselors, as well as any medication information and the location of those medications.
Important Papers/Information/Passwords
Be certain that you have informed your JGB attorney on the location of important papers in the home. In addition, consider providing digital copies of those papers to your JGB attorney in advance of a disability/death event. These may include copies of birth certificates, marriage licenses, divorce papers, Form DD214 (if you are retired military, or the spouse thereof), tax returns, family genealogical papers, family bible, family photo albums, estate planning documents (JGB will already have copies of your JGB estate planning documents) and professional licenses.
In addition, provide your JGB attorney with a list of your passwords for financial accounts and social media logins, etc. This will allow your Trustee to access this information and where appropriate shut down accounts.
Storage Units
Storage Units are often overlooked. It is important that your JGB attorney is aware of any Storage Units you may have under contract and how to access the same.
Conclusion
Having smooth and seamless transition for your JGB attorney acting as your Trustee in a disability or death event is directly proportional to the preparation work you complete in advance. If you choose not to take any steps to prepare for this transition, your JGB attorney can still get the job done; however, everything will take a little bit longer and be more of a hassle to everyone involved. By taking these commonsense steps in advance you can set up your trust/estate for a smooth administration allowing your JGB attorney to focus more time on taking care of your affairs as quickly and accurately as possible.
About the Author:
Jeremy C. Johnson is a Partner with Johnson, Gasink & Baxter, LLP. As a trust, estate and business attorney, he is a proven problem solver who has helped thousands of individual and business clients over his 20+ years of practice, taking pride in ensuring that his work for clients is reliable, correct and on time. Jeremy earned his bachelor (English) degree from the University of Massachusetts at Amherst, MA; his Juris Doctor from Western New England University School of Law in Springfield, MA; and his LL.M. in Taxation from Boston University School of Law in Boston, MA. He maintains licenses to practice law in both Virginia and Massachusetts. Having relocated to Virginia in 2004, Jeremy is active in the Williamsburg community. He has served on multiple boards over the years, and he is a returning instructor for SCORE programs sponsored by the Chamber. He has five children and enjoys living, working and playing in Williamsburg with his wife, Sarah Kuehl Johnson.