A trust has to have a trustee, somebody who is in charge of managing the assets in the trust, and with an Asset Preservation Trust, you can’t be your own trustee. One of the questions we often get during Asset Preservation Planning is, “Will the trustee have a lot of responsibilities to attend to?”
Since people can’t be their own trustee, they are typically naming another family member, commonly one or more of their adult children. So, it makes sense that this particular question is weighing on their minds.
In this Elder Law Minute, Wes Coulson, Southern Illinois Elder Law attorney, continues with the series on Asset Preservation Planning and explains the role a trustee has with an Asset Preservation Trust and offers reassurance that the responsibilities aren’t that great or difficult for a family member to handle.
Would the Trustee of an Asset Preservation Trust Have A Lot of Responsibilities to Attend to?
Transcript:
Hi, I’m Wes Coulson and this is your Elder Law Minute. This is another in our series of videos on Asset Preservation Planning, which is the means of protecting your life savings from being lost to long-term care costs.
A trust has to have a trustee, somebody who is in charge of taking care of things, managing the assets in the trust. With an Asset Preservation Trust, you can’t be your own trustee. So, generally, people are naming a family member, most commonly one or more of their own adult children.
So, the question that arises is “Well, will that trustee have a lot of responsibilities, will they have a lot to do?” Generally speaking, the answer is no because the trust is mainly going to have investments and so it’s simply a matter of managing those investments. And I always ask people, “Well, how much time do you devote right now to managing your investments?” And chances are it means that maybe somewhere between twice and four times a year you meet with an investment advisor. A trust has to file a tax return, but there’s not much to that because it only has investment income, if that income is distributed to beneficiaries, the trust doesn’t have a tax.
So, the basic answer here is the responsibilities aren’t that great. Your family member can handle them. Thanks.
For more information on Asset Preservation Planning, visit these articles:
- How An Asset Preservation Trust Protects Your Life Savings From Long-Term Care Costs
- What if I put my life savings into an Asset Preservation Trust and then I need some back later?
- Long Term Care Costs: The Biggest Threat to your Financial Future
“Your Trusted Advisor on the Elder Care Journey”
Dent-Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Dent-Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (877)995-6876 or Contact Us and we will get in touch as soon as possible.
