These clients found us online and were interested in putting a plan in place for their minor child if something happened to both of them. The challenge was that most of their family lives overseas, including the alternate long-term guardians of their child. In order to make sure their U.S. assets would be immediately available to support their child, they opted for a trust. In addition to avoiding probate, the trust has an added benefit of limiting their estate tax liability on their growing estate, valued over $4M.

Based on their needs they chose to do the tax trust package, which includes:

– Credit Shelter Trust;
– Wills;
– Powers of Attorney;
– Medical Powers of Attorney;
– Minor Power of Attorney
– Minor Medical Power of Attorney
– Health Care Directive;
– Disposition Instructions; and
– Quit Claim Deeds moving real estate into the trust

The Credit Shelter Trust is a special type of Revocable Living Trust married couples can use to double their WA state estate tax exemption amount from $2.2m to $4.4m.

The Revocable Living Trust enables the clients to avoid probate, directs their assets in the trust to go where they would like them to go, and appoints a trustee to oversee management and distribution of these assets. When the clients are gone there will also be asset protection elements for the children.

The Will does three things: (1) name long-term guardians for the kids if something happens to both of them; (2) name a personal representative (i.e. executor) of the clients’ estates; and (3) ensure all assets get into the trust, even those the client failed to allocate.

The Power of Attorney names people to manage the clients’ finances if they are ever incapacitated.

The Medical Power of Attorney nominates people to manage the clients’ health care if they are unable to do so themselves.

The Minor Power of Attorney and Minor Medical Power of Attorney act as a short-term guardian designation in case both parents are incapacitated at the same time.

The Health Care Directive tells the client’s Medical Power of Attorney what to do if they are in a vegetative state (i.e. pull the plug or not).

The Disposition Instructions state what the clients would like to happen to their remains after they are gone.

The Quit Claim Deeds transfer the clients’ interest in real property to their trust, so it will avoid going through probate.

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