SimplyTrust Knowledge Base

A: When someone passes intestate, it means they didn’t leave a valid will behind. Without clear instructions, the state steps in to determine who inherits the estate. Every state has its own intestate succession laws, which act as a sort of default estate plan—deciding who gets what based on family relationships.

A: An heir is someone who is legally entitled to inherit assets if no will or estate plan exists. In most cases, heirs are close family members—think children, spouses, parents, or siblings. The specific rules for who qualifies as an heir vary by state and follow what’s called intestate succession laws.

A: The core reason revocable trusts become irrevocable is to ensure that the grantor’s wishes are carried out exactly as intended. Once the grantor is no longer around to make changes, the trust becomes irrevocable to preserve their original directives.

A: An attorney-in-fact is an individual designated by someone (known as the principal) to make decisions and act on their behalf. The scope of that authority depends on the terms outlined in the power of attorney document. While the title might sound like it refers to a lawyer, it actually doesn’t. An attorney-in-fact is not necessarily a legal professional but rather a person appointed to act on someone else’s behalf through a legal document called a power of attorney.

A: A codicil is a legal document used to make amendments, additions, or deletions to an existing will. Think of it as an official add-on that updates specific parts of your will without replacing the entire document. It ensures your estate plan stays current and reflects your latest wishes while keeping the original will intact.

A: A living revocable trust is a legal arrangement where you (the grantor) place your assets into a trust during your lifetime. You retain full control over those assets—you can add or remove property, change beneficiaries, or even dissolve the trust altogether. This flexibility makes it a go-to tool for people who want to keep their estate plans adaptable.

A: Life insurance isn’t just about providing financial support—it’s also a powerful tool for ensuring that your estate plan runs smoothly. It offers immediate liquidity, which means your beneficiaries can access funds quickly, avoiding lengthy delays that often come with probate.

A: Imagine this: You’ve spent your life supporting a local animal shelter—volunteering, donating, and advocating for their mission. Now, picture ensuring that support continues. That’s the power of incorporating charitable giving into your estate plan.Including charitable contributions in your estate plan offers several key benefits:Leave a Legacy: Your gift can continue to support causes close to your heart.Tax Advantages: Depending on the structure, charitable gifts can reduce estate and income taxes.Fulfill Philanthropic Goals: Help fund research, support communities, or uplift future generations.

A: Here are some quick estate plan statistics highlighting the current state of future planning in the United States:Lack of Estate Plan: As of 2024, only about a third of Americans have an estate plan in place. In fact, more than two thirds of Americans do not have a will or any estate planning documents of any kind (e.g., wills and trusts).Motivations for Estate Planning: Health concerns are a significant motivator, with 43% of individuals indicating that a medical diagnosis would prompt them to create a will, according to Caring.com.Family Conflicts: Over a third of U.S. adults report experiencing or knowing someone who has faced familial conflict due to a lack of estate planning.Probate Costs: The probate process can consume up to 10% of an individual's estate. They may extend over several months or even years.Wealth Transfer Expectations: In the coming decades, American retirees are projected to transfer more than $36 trillion to beneficiaries, including family, friends, and charitable organizations, according to PlannedGiving.com.Executor Awareness: Less than half of individuals designated as will executors are aware of their responsibilities. Underscoring the need for clear communication in estate planning.Document Accessibility: More than half of people are unaware of where their parents store estate planning documents. Highlighting a gap in family communication.

A: A trust is only as effective as the assets it holds. Not funding a trust properly is one of the most common trust mistakes. If you’ve taken the time to create one, make sure you actually transfer your assets into it. Otherwise, you’re leaving all your things out on the kitchen table.Why is it so important?1. To avoid probate.2. To protect your wishes.3. To avoid family disputes.4. To protect assets from creditors and lawsuits.5. To ensure a smooth transition if you're incapacitated.6. To avoid unnecessary taxes.7. To keep things private.8. To save time and money for loved ones.

A: 1. Not funding the trust.2. Picking the wrong trustee.3. Not updating the trust.4. Leaving out digital assets.5. Overcomplicating the instructions.6. Naming the wrong beneficiaries (or not updating beneficiaries).7. Forgetting about taxes.8. Choosing co-trustees who don't get along.9. Putting in assets that don't belong in a trust (there's a few).10. Not telling people about the trust.

A: A power of attorney is a legal document that allows someone (the agent or attorney-in-fact) to act on behalf of another person (the principal). This authority can cover a range of financial, legal, and health-related matters, depending on how you structure it.

A: There are very good reasons for bypassing probate. The include practical reasons like saving time and money and speeding up access to assets for beneficiaries. And they include emotional reasons like privacy, avoiding disputes and sparing loved ones further hardship.

A: An education trust is a legal arrangement that sets aside funds specifically for educational expenses. Unlike other savings accounts, these funds are managed by a trustee and are distributed according to the trust’s terms. This ensures that the money goes solely for educational purposes, preventing misuse or early depletion.

A: Non-financial assets include anything of value that isn’t tied to a bank or investment account. These can range from tangible property to intellectual property to sentimental items like family heirlooms and photo albums.

A: A health care proxy is a legal document that allows you to designate someone—often called an agent or proxy—to make medical decisions for you if you become unable to do so. This could happen due to illness, injury, or unconsciousness.

A: Guardianship is the legal authority granted to an individual (the guardian) to make personal, financial, and medical decisions for another person (the ward) who is unable to do so themselves. This can apply to minors, adults with disabilities, or even elderly individuals who can no longer manage their own affairs.

A: A special needs trust protects beneficiaries without jeopardizing their eligibility for essential government benefits. (It can be an important element of guardianship in estate management.)It provides financial support to individuals with disabilities while preserving their access to public benefits like Supplemental Security Income (SSI) and Medicaid. These programs often have strict income and asset limits, making direct inheritances or gifts problematic. A special needs trust solves this by keeping the assets in a legally protected trust, managed by a trustee who oversees distributions.