Trust Administration

Trust administration is not a court ordered process. It involves the transfer of property from the creator of the trust to the trust’s beneficiaries. Unlike probate proceedings, trust administration allows for the simple distribution of property to beneficiaries.

A revocable trust is created when an individual (known as the settlor) creates a legal document that puts the care of his/her assets in the possession of another person. The person who is assigned care of trust assets is known as the trustee. The trustee is almost always the same person that created the trust. A revocable trust allows the settlor/trustee to liquidate its assets at any time. When the settlor dies, the revocable trust become irrevocable.

Trust Administration consists of “housekeeping” paperwork required after the settlor/trustee passes away. During trust administration, the trustee is required to safeguard the trust assets and pay all required taxes. The complexity of trust administration will depend on the type of assets held in the trust, their total value, and the tax liabilities the trust may be subject to.

Contact the Law Offices of Nancy A. Cogar for more information about trust administration in Tennessee. We provide basic trust administration services after the death of the settlor. Trust administration is important. Completing trust an correctly will keep trust assets out of probate court or exposed to extensive tax liabilities.

General Durable Power of Attorney

What is a General Durable Power of Attorney? It is “general” because it covers a wide range of situations, such as selling real estate, purchasing items you may need, accessing your bank accounts and other investments, applying for government benefits on your behalf, etc. It is “durable” because it can remain effective even if you are deemed cognitively incompetent.

We provide each client with a worksheet which serves as a tool to help make you aware of the extent of the powers you can grant or limit in a GDPOA. Some of the scenarios may not apply to you, but our clients have found this exercise helpful and informative as they outline the powers they wish to designate to their Agent (also known as an Attorney in Fact) to perform on their behalf should they no longer be able to make those decisions for themselves. For the above reasons, we ask that you consider each section in the worksheet carefully and make a list of any questions that come to mind.

The first important question you will need to make if the choice of your agent and alternate. Since the person you are naming as your “agent” or “attorney-in-fact” under your GDPOA may have very broad powers over your property and legal decisions, it is vital to choose your agent carefully. We also highly recommend that you also choose an alternate agent in case the attorney-in-fact is unable or unwilling to serve. Frequently spouses appoint each other with a named successor agent being one or more of their children.

Last Will and Testament

Creating a Last Will & Testament is one of the most critical things you can do for your loved ones. Putting your wishes on paper helps your heirs avoid unnecessary hassles, and you gain the peace of mind knowing that a life’s worth of possessions will end up in the right hands.

What is a will? A will is simply a legal document in which you, the testator, declares who will receive your assets and manage your estate after you die. Your estate can consist of big, expensive things such as a vacation home, but also small items that might hold sentimental value such as photographs. The person named in the will to manage your estate is called the executor because he or she executes your stated wishes.

A Last Will & Testament will help you identify your current assets and to articulate how you wish them to be distributed. It is possible that your will may never need to be updated –or you may choose to update it regularly. The decision is yours. Remember, the only version of your will that matters is the most current valid one in existence at the time of your death. With that in mind, you may want to revisit your will at times of major life changes. Think of pivotal moments such as marriage, divorce, the birth of a child, the death of a beneficiary or executor, a significant purchase or inheritance, and so on. A rule of thumb: Review your will every two or three years to be safe.