The estate planning process offers a chance to plan post-death distributions (gifts) to individuals and organizations. Some individuals include more than just their children, grandchildren, schools, and charities in their distribution planning and identify other people who hold special significance in their lives.
In 2015, legendary University of North Carolina Men’s Basketball Coach Dean Smith passed away after a 36-year career mentoring and working with hundreds of young athletes. Upon his death, the trustee of his living trust revealed unique directions Smith wished to effectuate. He left instructions for his trustee to give each of his former players a $200 check with the message: “Enjoy a dinner out compliments of Coach Dean Smith.” Nearly 200 former players received the check with instructions. Coach Smith’s thoughtful gift was a touching gesture for many of his former players, but nobody was surprised by his detailed planning.
This story offers a good example of the opportunity to be creative and construct specific gifts within one’s estate plan that further a life’s legacy.
Working with an experienced estate planning attorney can help create fresh ideas and accomplish specific goals. Estate planning attorneys also assist in creating a proper and enforceable document that will allow a trustee to complete a desired plan. Unfortunately, a poorly crafted document can produce negative consequences which can frustrate a trustee and leave ambiguity, uncertainty, and financial disputes.
Recently, Chauvel & Glatt assisted a client tasked with the administration of a friend’s trust. The creator of the trust personally drafted the trust with an online software service, and included instructions to give $10,000 to “any person related to me through 23 and Me,” the genetic ancestry matching company. This trust instruction created numerous potential problems for the trustee.
There was no record the creator had ever completed the 23 and Me process, and there is no procedure to do a post-death analysis. Additionally, such an open-ended instruction with an unlimited, unnamed group of potential recipients could have more than exhausted the estate funds and cause disputes. Often these types of distributions have priority over what may constitute the residual estate distribution.
The opportunity to leave specific gifts to people that you wish to honor or remember is a compelling option, but one to be taken with care and consideration. Contact the Estate Planning Attorneys at Chauvel & Glatt to establish or update documents and properly create the legacy you wish.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute legal advice. For information on your particular circumstances, please contact Chauvel & Glatt at 650-881-2476 for legal assistance near you. (photo credit: Depositphotos.com)
