SimplyTrust Knowledge Base

A: Whether you’re newlyweds or about to tie the knot, this life milestone is a perfect time to think about setting up a trust. Trusts aren’t just for the ultra-wealthy. They’re for anyone who wants to stay organized, avoid future headaches, and protect the people (and pets) they care about most.

A: Medicaid is a government program that helps cover healthcare costs, especially long-term care, for people with limited income and assets. The catch? To qualify, someone usually has to reduce their assets to a very low level. For many people, that means making tough choices—like selling the family home or draining savings. But that’s where trusts can help. Used properly, a trust can protect certain assets from being counted against Medicaid limits.

A: Inheriting wealth can feel intimidating at first—but it also presents an opportunity. With the right steps, anyone can preserve what someone has passed on to them, avoid common pitfalls, and shape a future that reflects specific goals. Trusts for inheritance offer structure, protection, and peace of mind. They help ensure that new responsibilities turn into lasting benefits—for inheritors themselves and the people they care about most.

A: Let’s be honest—your house is probably one of your biggest assets. And if you own it in your name when you pass away, it may have to go through probate. That’s the legal process of proving your will and transferring assets, and it can take months (sometimes longer) and cost your family time and money. Putting your house in a trust (i.e., naming the trust as the beneficiary of the house) avoids all that. The trust owns the house, so the trustee (the person you name to manage things) can transfer it to your beneficiaries without going through court.

A: When you’re downsizing—selling your current home and moving into something smaller (hello, less vacuuming)—you’re doing two things at once. One, moving assets around and, two, planning for the future. Trusts help you do both.

A: Conservatorship, in a nutshell, is a legal arrangement. A judge appoints someone—called a conservator—to manage another person’s finances, daily life, or medical care. That other person is known as the conservatee. This usually happens when the conservatee is unable to make decisions for themselves due to age, illness, injury, or disability.

A: Setting up a trust early in your parenting journey offers peace of mind and practical benefits. 1) Financial security, which ensures that you meet your child’s needs at every stage. 2) Probate avoidance, which skips the court process in most cases. 3) Asset protection, which keeps money safe from legal issues or financial mismanagement. 4) Custom control, which specifies use of funds for things like education, healthcare, and housing.

A: Trustees need passwords to access: 1. Bank accounts.2. Investment platforms.3. Email (because guess where two-factor authentication codes go).4. Cloud storage.5. Cryptocurrency wallets (i.e., digital Fort Knox).6. Social media accounts.If a trustee doesn't have the passwords for those things, they don’t have someone's digital assets. Simple as that.

A: Estate plans often include financial accounts, real estate holdings, business interests, and personal directives. If you don’t prioritize privacy in estate planning, you may have to deal with unpleasant consequences, such as:Public Probate Records: If your estate goes through probate, details about your assets and beneficiaries become public.Identity Theft Risks: Personal and financial information left unprotected can be exploited.Unwanted Solicitation: Heirs and beneficiaries may receive unwanted attention from scammers or financial advisors.Family Disputes: Public access to inheritance details can lead to unnecessary conflicts.

A: It has to meet specific legal requirements. It must:1. Include a clearly stated intent to create a trust.2. Have a clearly defined grantor (the person whose trust it is).3. Designate a trustee (the person who manages the trust after the grantor passes).4. Identify beneficiaries (the people who receive the assets in the trust).5. Contain assets.6. Be of lawful intent (i.e., not for illegal purposes).7. Comply with the laws of the state where it is created.8. Be properly executed and signed (by the grantor and any witness or notary).

A: Inheritance rights refer to the legal entitlements that dictate who can inherit property, money, and other assets. These rights depend on various factors, including whether the person left a will or trust and the laws of the state where they lived.

A: Beneficiaries are the people (or organizations) who inherit assets from a will, trust, or other estate planning tool. But their role isn’t just about waiting to receive assets—they may also need to make sure everything goes smoothly and fairly. You’ll find beneficiaries listed in:Wills: This spells out who gets what when someone passes.Trusts: These are legal documents that hold assets for people or organizations.Life Insurance Policies: Money from these policies goes straight to named beneficiaries.Retirement Accounts (IRA, 401[k]): The people (organizations) listed get the funds.

A: Without the legal protections that come with marriage, you and your partner need to take extra steps to ensure that your assets, healthcare decisions, and financial plans reflect your wishes. Here are 10 crucial estate planning tips for unmarried couples to help secure your future together.1. Create a revocable living trust.2. Establish a durable power of attorney.3. Designate a health care proxy.4. Consider a will.5. Name each other as beneficiaries on financial accounts.6. Establish joint ownership of property with rights of survivorship.7. Plan for estate taxes.8. Draft a cohabitation agreement.9. Write a letter of intent.10. Regularly update your estate plan.

A: A letter of intent (LOI) is a non-binding document that provides additional details about your estate plan, offering clarity on matters that legal documents may not cover. Unlike a will or trust, it does not hold legal authority, but it serves as a valuable reference for executors, trustees, and family members.

A: Generally, when someone passes, their estate—the total value of their assets—becomes responsible for paying off any outstanding debts. This includes mortgages, credit card balances, personal loans, medical bills, and other liabilities. If there is no estate plan in place, the estate will go through probate, a court-supervised process of asset distribution and debt settlement.However, if the estate lacks sufficient assets to cover these debts, creditors may be out of luck. Surviving family members are not usually responsible for unpaid debts unless they co-signed a loan or are otherwise legally tied to it, such as in the case of jointly held accounts.

A: The Great Wealth Transfer refers to the large-scale shift of assets from the Baby Boomer generation to their heirs, primarily Millennials and Generation X. Baby Boomers have accumulated significant wealth due to decades of homeownership, stock market growth, and retirement savings. As they age, this wealth will pass down through inheritances, trusts, and other financial mechanisms.

A: POA abuse occurs when an agent exceeds their authority, acts in their own interest rather than the principal’s, or engages in fraudulent or deceptive practices. This can include:1) Financial Exploitation: Using the principal’s money for personal gain instead of their intended care.2) Unauthorized Transactions: Selling assets or withdrawing funds without the principal’s knowledge or consent.3) Neglect: Failing to pay bills, manage investments properly, or otherwise act in the principal’s best interests.4) Coercion or Forgery: Pressuring a vulnerable individual into signing a POA or forging documents to gain control over their assets.

A: Yes. Debt does not simply vanish when someone passes away. Instead, it often falls on the estate, allowing creditors to claim repayment from the deceased’s assets before beneficiaries receive their inheritance. Failing to account for outstanding debt in estate planning can create financial setbacks, delays, or legal disputes for heirs.