JOINT OWNERSHIP, A WILL OR A TRUST
By: Robert J. Myers, Esq.
Andy, a widower with four children, had most of his available cash invested into four
Certificates of Deposit. The teller at the bank told Andy that if he would hold each C/D in a trust
for each of his children, there would be no probate on Andy's death and each child would then
automatically become the owner of one C/D. What the bank teller advised Andy was true, but Andy
was probably not told the whole story.
If Andy was to hold one C/D in trust for each of his children, whose money would be used if
Andy required expensive surgery, twenty-four hour home care or care in a nursing home?
Under such circumstances, what had been planned as an equal distribution on death would
substantially decrease the inheritance of one or more of his children because money would be
spent for Andy's care. In addition, if each of Andy's C/D's were held in trust for one of his children,
another problem would arise if Andy became incapacitated. No one would have access to Andy's
money and then it would be necessary to have the Court appoint a guardian for Andy. Even though
the guardian could be one of Andy's children, this could create a needless expense and a great
inconvenience.
At the very least, Andy should have a Will which states that whatever money is left in
Andy's estate after the costs of his daily living, lifetime care and final expenses have been paid will
be distributed to his children equally, if that is Andy's wishes. This Will, of course, would require a
probate on Andy's death but Andy would have been provided for during his lifetime.
A much better way of handling Andy's estate, however, would be for Andy to create a
Living Trust. He could then place all of his assets into the trust by transferring the title to his
assets from his individual name into his name as Trustee of his trust. Andy would then retain full
control of his assets while he is competent, or chooses to have such control, but upon his
incapacity the successor trustee that he names in the trust (this may be one or more of his children)
takes over control of Andy's assets, pays his bills and keeps a record of receipts and disbursements.
The trust will do the following things for Andy and his children:
- Significantly avoid probate costs and provide for immediate distribution of all
assets on Andy's death.
- Avoid the necessity of a guardianship if Andy is incapacitated.
- Provide money management during Andy's lifetime if Andy is unable to manage
his own finances.
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Robert J. Myers is managing attorney of the Estate and Trust Division of Maney l Gordon P.A.,
located at 1135 Pasadena Avenue South, Suite 140, St Petersburg, Florida. The telephone number is 727-347-5131. Mr. Myers welcomes calls regarding these articles and other related legal topics.
This column outlines general legal principles and is not intended to give you legal advice. If you have a specific question about the law, please consult an attorney.
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