For a while, the idea of a “trust” or “estate” was thought of as a tool of the wealthy who had large mansions and companies. However, estates and trusts are for everyone, and trust administration is a top that can (and likely will) come up for every family, regardless of financial status. In this article, we will give you an overview of trust administration. This is not intended to replace the advice of an attorney, as every family is different and has their own specific needs. 

What is a Trust? 

A trust is a tri-party fiduciary relationship. The first person is called a “trustor.” A trustor transfers the property to the second party, who is called a “trustee.” The trustee holds the property for the benefit of party #3, who is known as the “beneficiary.” The trustee will hand over the property to the beneficiary at a date predetermined by the trustor. Usually, the beneficiary gets the property after the turn a certain age or upon the death of the trustor. 

What is Trust Administration? 

Trust administration refers to the rights and duties of the second party—the trustee. The trustee must manage the trust according to the terms and conditions of the trust document that the grantor has written. The trustee must manage the trust for the benefit of the beneficiary. A trustee is always encouraged to work alongside an attorney in order to make the management process easier and clearer. 

Who Can be the Trustee? 

It is possible to name the same individual to the position of trustee and the position of executor of your estate. There are some who recommend that two different people be the trustee and executor, as a way to put checks and balances in place. But, if you name the trustee and executor as the same person, it will minimize legal expenses, as the lawyer only has to communicate with one person. 

However, placing the same person in both roles requires a massive amount of trust in the individual. The individual must be responsible, as he or she is personally liable for the trust in certain situations. 

Personal Liability 

Trustees are obliged to strictly abide by the trust’s terms. If the trust prohibits or mandates something, the trustee must do everything in his or her power to stick to the terms of trust. 

A big taboo in trust administration is using trust assets for your own benefit. This and other trust-related wrongdoing will lead to a court holding the trustee accountable, whether the court mandates repayment or strips the trustee of their title. A trustee who commits wrongdoing can even be sued in a court of law for restitution and damages. 

Can You Decline an Appointment? 

Both offices have a lot of responsibility. If you are appointed to either and don’t feel that you can take on that responsibility, you are in luck, as declining is perfectly legal. If you are offered the job of executor and decline, the court will name someone else in your stead. If you decline the job of trustee, the grantor can just replace you with someone else. Trust administration can get complicated, so there is no shame in declining the position if it seems outside your wheelhouse. 

Trust administration has the potential to either be very simple or very complex (like everything in law, really). Trusts and trust administration are topics about which you should contact an attorney, as opposed to going on DIY legal sites. It’s important to ensure the trust is done correctly to avoid any unintended results. 

The coronavirus pandemic has hit everyone very hard, and there are few signs that it will be ending anytime soon. If you watch the news, you’ll hear about the constant economic hardships that people have endured. Small businesses have been undergoing massive amounts of strain, and applications for new businesses plummeted when the pandemic began.

…And then they stopped plummeting. America is nothing if not the land of opportunists and bootstrappers, and, as of the third week of June, there have been 87,950 new business applications. This is 33% more than last year had at this time. America is bouncing back, and people are seeing small business growth as people try to tackle the pandemic through the free market.

This article will give some tips/advice for starting a new business in volatile times. This isn’t America’s first rodeo. According to Bloomberg, small business applications spiked in 2009 after the recession, too. 

Why Start Now? 

You might have read the introduction in surprise, wondering why someone would ever want to start a business during a crisis like this. It’s hard enough starting one in perfectly calm conditions, let along during a pandemic that has thrown us into a recession.

However, a recession can actually benefit startups. The old saying, “Necessity is the mother of invention,” is very true. Startups that take advantage of the problems that coronavirus brings—healthcare-related, deliveries, helping people stay at home, making masks, etc.—already have a built-in demand for the product. 

Economic recession also likely means that interest rates are lower, making loans more affordable. Investors can sometimes use a downturn to get more loan money for less. Additionally, there is a lot of top talent available, as people have been laid off during the recession. 

The competition is also lower, as everyone is struggling. You may be able to negotiate for lower prices and better terms on new custom, and, if you’re in a good cash position yourself, you might be able to buy up other companies or new assets that have decided to cease trading. 

While every business will not succeed, there are factors that put startups in a positive position during a recession such as this. 

Some Successful Businesses that Began During Recessions 

Need proof? Burger King, FedEx, Microsoft and General Motors all were founded during a recession, and these companies have gone on to become global powerhouses. 

Burger King was founded in the fifties after the Korean War took its toll on the American economy. It wasn’t enough to send the U.S. into a Depression, but it did create a small recession. The Burger King founders sought to capitalize off a need for affordable fast food. Thus, BK was founded. 

FedEx was founded as a college project by university student Fred Smith during the recession of 1969 (which lasted until 1971). Smith was able to turn FedEx into a $70-billion business. Microsoft was founded a few years later during a recession, when the American GDP was stagnant. Though there was high unemployment and rising inflation, Bill Gates took a chance that paid off heavily. 

Lastly, General Motors started before the Great Depression, but it used those economic conditions to give it a major boost. The GM founder bought up smaller, struggling manufacturers in the early 1900s and used it to expand the GM empire and reach. 

Best Businesses to Start

When you look at the pandemic, you will see that there is a huge need for Internet-related and delivery-related items and services. People are not able to go to restaurants, and the Internet has taken the place of shopping and schooling. Online tutoring, online sales, food and gift delivery, and similar endeavors are all example of businesses that might do well in the pandemic (but, of course, there are no guarantees in the free market).

Being in the middle of a pandemic and a recession has never stopped Americans before, and it doesn’t appear to stop them now, as the statistics indicate. Small business planning for a recession will go smoother if you hire a lawyer to help you with the necessary documents. Contact an attorney for more assistance today. 

Elder law covers all of the issues that either specifically or more frequently impact people over the age of 65 (though that age is not a hard limit—those under sixty-five can take advantage of elder law). An elder law attorney deals with a wide variety of legal issues, including long-term care planning, retirement, guardianship, healthcare, Social Security, Medicaid/Medicare, and other, similar issues. Disabled people are also covered under many of the same laws as the elderly, as there is often an overlap between the two groups. 

In these uncertain times, elderly people are at their most vulnerable. According to the CDC, older adults are at the “highest risk” if they contract coronavirus. The risk for several illness due to coronavirus increases as one ages. It’s important to understand how elder law can help you during these times. 

Below, you’ll see an overview of what elder law entails. 

Elder Law vs. Estate Planning 

The purposes and goals of elder law and estate planning are different. Elder law helps an elderly person attain financial autonomy and freedom through proper financial and medical planning. This area of legal practice tries to help place the elder individual in as stable a situation as possible in the financial, medical, and legal aspects of their lives. 

To be frank, the main difference between elder law and estate planning is that the latter is for use after you die, while elder law is for the living. Estate planning deals with what will happen to your assets after you die, while elder law is concerned with the here and now. 

Should I Hire an Elder Law Attorney? 

If you or your loved one are aging and beginning to encounter issues pertaining to Social Security, Medicare/Medicaid, long-term care, and other elder-specific issues, you might consider hiring an elder law attorney. Having essential legal documents in place will allow you to keep your autonomy to the greatest extent possible. A lawyer can ensure these documents are drawn up correctly and in a way that advantages you. The lawyer has your best interests at heart. Other parties might not. 

Where Does the AARP Come In? 

The AARP provides free legal counsel to many of its members, depending on where you live. For example, Washington D.C. residents have the benefit of a free hotline that helps seniors who have legal questions. These services also include fighting foreclosures, evictions, obtaining SSI, Medicaid, and VA benefits, and advocating for nursing home residents. 

The AARP might also offer programs that will help you prepare power of attorney and will documents. The AARP is a valuable resource for seniors, so check in at your local headquarters to see what kind of services they offer. 

Other Serious Issues with Which Elder Law Deals 

A very serious area that elder law practitioners deal with is elder abuse. This includes emotional, physical, and sexual abuse, as well as neglect/abandonment, financial exploitation, and healthcare fraud. Neglect, according to the NCOA (National Council on Aging) is the most common form of elder abuse. 

The NCOA also has found that one in ten elders are abused yearly, but only one in fourteen cases of elder abuse are reported to the police. It is impossible to talk about the important of elder law without mentioning that elder law practitioners will help you if you or your loved one is suffering abuse—or if you suspect abuse. 

This guide is by no means the be-all, end-all of elder law, but it has hopefully helped shine a light on how elder law can help you and/or your loved one. Contact an attorney for more situation-specific questions, as no one legal issue is the same.

The impact of Coronavirus on small businesses has been devastating. While the Small Business Administration gave out loans to help small business owners make it through, many are still struggling or were unable to secure the loan before the money ran out. 

There’s no doubting that small businesses are truly a cornerstone of the American economy. Businesses with less than five-hundred employees account for nearly half of the American workforce and over 43% of the U.S. GDP (Gross Domestic Product). 

One of the main reasons for the struggle is the uncertainly. How long will this last? Will there be a second wave? A second CARES Act? There are a few things to note if you’re a small business looking to keep moving forward. As things open up, keep the following in mind: 

Contingency Plans 

If you haven’t already, make detailed contingency plans in the event of a second wave. Making plans helps people achieve goals, and writing those concrete plans down increases your chance of success. When creating a contingency plan, make sure that you look ahead—what will you do if things are worse in twenty days? Better? This forward-thinking will help in the long run. You won’t feel blindsided. 

Apply for CARES Act Loans if You Haven’t Already 

Currently, this is the link for more information for businesses and lenders: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses. There is an application that you must fill out, and you will likely have to wait in line. The SBA is swamped, and lending $349 billion is as difficult as it sounds. The money goes through the banks, which then lend the loans directly to local businesses. 

Be Prepared to Wait

Be prepared to wait in line. This means including, in your contingency plans, things that you should do to preserve what you can while you’re waiting for your loan. Help your employees contact the government about their loans (unemployment has been increased), and continuously check in with them. Though the idea of waiting might seem daunting, it is important that you don’t let that discourage you from getting in line for the CARES loans.

Your Customers’ Needs Have Changed 

People are soon going to be able to leave the house. Your business needs to change with customers’ changing needs. Comply with the current regulations, whether that means increasing your drive-through or takeout or taking other, similar measures. Do what you can, and reach out to your customers to see how you can keep your connection to them going. 

Consider Other Sources of Relief

Organizations and companies like Verizon, Amazon, Facebook, and the James Beard Foundation are all examples of the private sector stepping up. These relief programs all have their own specifics, but some of them may be able to help you. Above all, keep abreast of the latest developments in the news regarding relief programs, whether privately- or publicly-funded. You don’t want to be the last to know. 

Business Succession Plan 

Lastly, one thing to think about is making sure you have an iron-clad business succession plan in place if something happens to you. We’re not out of the woods yet. Make sure you have a written estate plan that details what you want to happen to your business if you die. Contact an estate planning attorney to make sure it is done correctly.

Everyone is struggling during the Coronavirus, so you are not alone. The constant uncertainty about the virus and the disagreements on how to handle it can be overwhelming. Set out to accomplish one small thing per day. Overloading yourself will only make the feeling of being overwhelmed worse. Hopefully, things will get back to normal soon. 

Father’s Day is coming up in a few weeks, and we all have different things that we love about our dads. Dads might be the protectors of the family, but they might need protection themselves, as they get older. Helping your father with his estate plan is a long-lasting gift that will give him (and you) peace of mind. Here are some ways that kids can help their parents by setting up an estate planning meeting with an attorney. 

Healthcare

As people get older, their health tends to become a little more precarious. Even someone in great shape one day can have a change the next. When it comes to healthcare, there are some major tools in the estate planning toolkit. Namely, you can set up a healthcare directive.

A healthcare directive is a document that lays out your father’s health wishes, whether these include a DNR order, special diet instructions (such as religious restrictions), or other important beliefs. If your father is too incapacitated to verbalize these decisions to the doctors and nurses taking care of him, the healthcare directive will do it for him. 

Finances

A power of attorney is a trusted individual that your dad picks to handle his financial, legal, and/or medical affairs in the even that he isn’t able to make those decisions for himself. There can be more than one power of attorney, and each power of attorney can be limited in scope. 

A general scope POA handles all of the decisions that your dad needs made. A special POA is restricted to just a certain decision-making field, whether it’s healthcare decisions or finances. Your father will pick the power of attorney, and the idea is to pick someone who is stable and level-headed. A power of attorney isn’t forever—it isn’t permanently taking power away. It comes into effect when in the event that your dad needs help when he’s older.

Updating Wills and Estate Plans

The rule of thumb states that you should update and/or review your will and estate plan every three to five years. However, if you experience a major life event, such as new people in the family, divorces, health scares, etc., you should update it earlier to reflect those changes. 

Updating an estate plan can take a long time, especially if there are a lot of documents in the plan. It can take even longer to create a new estate plan from scratch, if your father doesn’t have one in place. Though it takes a lot of time and effort, your dad is worth it. 

Setting Up a Trust

If your father knows he wants to transfer a specific piece of property/money to someone and has been talking about it forever (but hasn’t done it yet), helping him set up a trust is a great idea. A trust is a three-party relationship. Your father is the donor. He transfers title to the property to the trustee. The trustee then transfers the property to the beneficiary, which is the person that your father intended to get the property all along. The trustee keeps the property in his possession until instructed to transfer it—usually, the transfer goes through upon death.

Business Succession 

If your dad owns his own business, making sure that there are business succession plans in the works will keep his company safe after he retires or passes on. Perhaps he wants his company liquidated and the proceeds distributed, or maybe he wants his company to merge with another. Putting in place a concrete plan for what will happen to the business will be hugely beneficial to your father’s financial stability.

Setting up your father’s power of attorney is just one of many ways that the law can help him as he gets older. Estate planning is a way to ensure long-term safety and financial stability of your dad.

2020 has certainly sent us all for a loop. We’ve had months to reflect on our lives and the joys (or lack thereof) of working from home. It’s been a hard few months, but it appears to be coming to a close. Now that quarantine is over and we’re allowed to leave the house, it’s time to check off items on the to-do list that you may have been putting off. Namely, it’s time to review and update your estate plan. 

This article will discuss things to think about when checking over and updating your estate plan. 

I. Updating Your Will

There are several ways you can go about updating your will, and this section will touch on just a few of them, including: codicils, new wills, and personal property memorandums. 

Codicil v. New Will 

If you’ve never heard the term “codicil” before, you’re not alone. It’s a legal term, used to describe a minor change to your will. The codicil is a secondary document that you attach to your original will. On the codicil document, you can include changes to existing items in your will. An addendum, by contrast, is something that adds a new element to your will. It is also a secondary document. 

However, if you want to make big changes to your will, you might want to simply revoke your old will and make a new one. For example, a change of beneficiary is a big deal, so revoking your old will and creating a new will might be the safest choice. Be sure to follow the letter of the law down to a T, or else your old, inaccurate will might be honored. 

Personal Property Memorandum 

A personal property memorandum (PPM) is another type of update to your will. A PPM is a separate secondary document, the same as a codicil. You attach it to your will. In the PPM, you list an accounting of all of your personal property. A PPM doesn’t usually have to be signed or witnessed, but you have to refer to it in your will in order for a court to find it valid. Trusts are often a better way to transfer personal property. 

Don’t DIY It 

If this sounds confusing, that isn’t surprising. A major mistake that people make is thinking they can go onto a legal “DIY” website and write their own will or make changes. It is best to have an attorney help you. The law is tricky and the devil is in the details. 

II. Updating Your Estate Plan

The Rule of Thumb 

The rule of thumb for updating an estate plan and/or will is to do so every three to five years. The thinking is that, in that time frame, there has likely been at least one or two life changes that might require you to take another look. However, there are other times you should update outside of that “3 to 5” framework.

Other Times to Update 

If you go through a major life change or add new members to the family, you should update your will and estate plan to reflect those. These changes can include divorce, remarriage, new babies and other new family members, or changes in health circumstances. You never know what life will throw at you, so it’s best not to stick to the “3 to 5” rule too stringently. 

What to Update First

These are just suggestions, but it might be wise to update documents that have to do with your kids or health first. Think about what you prioritize and work backwards from there. If you have a complicated estate plan with a lot of documents, updating/reviewing may be a multi-day undertaking. 

Though the rule of thumb says to update your will and estate plan every three to five years, that’s not mandatory. If you’re undergoing a major life change, you should update. Above all, make sure to contact an estate planning attorney to ensure that the process is carried out correctly.