A retired couple needing an estate plan review. The clients:
- Had been a client of the firm for a few years.
- Had two adult children.
- Daughter was in a failing marriage and had the following concerns:
– Bankruptcy (Daughter’s spouse self-employed)
– How the above items would affect their assets
- Are residents of MN and are slightly over the MN estate tax exemption.
- Had existing estate plan.
- Son and daughter got along very well.
- Spouse had early signs of memory loss.
- Desired to gift some of their wealth to their children while living to see them enjoy the assets.
- After reviewing the clients existing plan it became apparent that the clients concerns were not addressed.
- The current plan left the assets to the children outright, naming each child as their own trustee.
- The existing plan and the titling of the clients assets did not match up.
- The existing plan named each surviving spouse as the successor trustee.
- Upon the passing of the 2nd spouse, Legacy trusts would be established for the assets to flow into therefore protecting the child’s inheritance from divorce and creditors.
- The Legacy Trusts also ensure that the assets will remain in the Grantor’s bloodline.
- Established the brother as the trustee on the daughter’s Legacy Trust in order to prevent coercion from the spouse of the daughter.
- Added the son as a successor trustee to the clients’ plan in order to make sure that if the husband passed first the wife would have help if her memory continued to slip.
- Retitled the assets to make sure the new plan covered them.
- Created a gifting plan for the clients that could be implemented while they were alive.