In this Elder Law Minute, Kaye DeSelms Dent explains when trusts may need to file tax returns, what happens when a revocable trust becomes irrevocable after death, and the responsibilities of serving as a trustee.
Introduction
Hi, I’m Kaye DeSelms Dent with Dent Coulson Elder Law here with an elder law minute for you. These videos are intended to educate you about the elder care journey [music] which begins earlier in life than you might think. We hope that you find them useful and if you have further questions, please call us at Dent Coulson Elderlaw.
Understanding Trustee Responsibilities
Today we’re going to talk about trust tax returns. Just kidding. We’re not actually gonna talk about them because lay people don’t need to worry about them and shouldn’t worry about them.
If you have been named as the trustee of a trust by your parents or spouse or someone else, you need to know that the trust probably needs to file tax returns, especially if the person who set it up was clear that it was an irrevocable trust or has passed away.
When a Revocable Trust Becomes Irrevocable
Because when somebody passes away and they are the trust maker or grantor of a revocable living trust, that trust becomes irrevocable on their death and the rules change.
There’s a bigger job to do and it’s not something you should do alone.
Should Family Members Serve as Trustee?
In fact, I tell people don’t name family members as trustees for irrevocable trusts because they probably won’t know what they’re doing and I see people make a lot of mistakes.
So, food for thought. If you’ve already been named and that horse has left the barn, you need to understand that the job is a pretty serious one.
It may be possible that you can resign and have a professional trustee, usually a bank trust department, named as trustee.
And if you are doing your own estate planning, be hesitant before naming a family member of an irrevocable trust.
Closing
That’s today’s Elderlaw Minute.
Thank you.
Also looking for information about Medicaid and Asset Preservation? Visit these articles:
“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 (618) 632-7000 (IL) or (314) 567-9292 (MO), or Contact Us and we will get in touch as soon as possible.