In ensuring a viable and resourceful estate planning there are some critical points to take cognisance of while ensuring you act upon them as you and your solicitors prepare your Revocable Living Trust(RLT). The trust deed must be comprehensive, well articulated and all encompassing not neglecting any material issue.This is a crucial point in our discourse as you are about to put in place a program that will regulate your own life’s resources with a view to giving a more abundant life to your successors.  

 Here are ten quick and easy things everyone can check off on their estate plan. 

1. BANKS

Trusts avoid probate because they are funded with your assets, and yes, that includes your bank accounts. Your trust deed is much healthier if a good part of your personal accounts are funded into the trust. It is important that your successor (Administrative ) trustee be able to instantly take on your responsibilities if you should become incapacitated or pass away.  If you have assets outside the trust which you haven’t funded into the trust, that hinders their ability to carry out the job you’ve given them.If you’re wondering about adding your child to your bank account you could be creating more problems than solutions as they might have an unhealthy competition not just with the trust but also in  house sibling rivalry etc .Seek a seasoned estate planning counsel’s advise first.

2. 2. REAL ESTATE

Have you purchased a new piece of property or refinanced?  If you have, you may have a significant asset outside your trust which is now  exposed to probate because it still lies outside the trust.  Check your deed ie., the title deed to your newly acquired property, to see if it names you as trustees or if you’re holding title as something else; joint tenants for example and also ensure that the conveyancing and assigning deeds are well titled so as to link in your trust strategically.Talk to your estate planning solicitor about any real property not in your trust. 

3. BENEFICIARY DESIGNATION:

Life insurance and retirement plans are controlled not by a will or trust, but by the beneficiary designations, typically using a form provided by the company.  Most of the time these assets should not be placed in your trust, but there are exceptions for both life insurance and retirement plans in order that insurance  policies should be well accounted for in your trust, you will do well to mention them to your solicitor.

4. OTHER ASSETS

Depending on which country you are, its typical to leave vehicles outside of the trust, but have a general deed of assignment or transfer for them to the trust.  Other assets such as business interests and individually held stocks, shares, bonds, treasury bills etc. require specific steps to transfer into the trust.It is also necessary to ensure that business ventures, transactions, contracts are well titled such that the trust can be well positioned to assume authority within the trust.This will also safeguard against fraudulent and dangerous business partners. Its in the ordinary cause of your solicitors’ practice to counsel you better in this regard.q

5.POWER OF ATTORNEY:

Your financial decision maker should have a copy of  the Power of Attorney.  In addition, your banks should have a copy as well before hand. Most financial institutions have a policy of rejecting Power of Attorney that are over 5 years old.  With a well structured trust deed, a separate power of attorney may not be  necessary unless there are anticipated assets that are to be brought into the trust then the document  should cater for it.The trust Company should be the donee of the Power of Attorney not the successor trustee or solicitor etc.

REGISTRATION OF POWER OF ATTORNEY:

Non compliance with regulations especially as it concerns the registration of instruments like the Power of Attorney can carry grievous repercussions and this would vary from one jurisdiction to another.

Where real estates/properties are listed in the Power of Attorney, then the requirements for registration could be more compelling. In jurisdictions where registration of titles  includes obtaining the governor’s consent, the consequences of non compliance could jeopardise the purpose and efficacy of the Power of Attorney so much as to render it null and void. However  getting the same instrument Stamp Dutied enables  its admissibility  in evidence in court proceedings. You certainly need a competent legal adviser to help you navigate this terrain. 

Look out for the 5 other must do points as you lay your bed, so you can sleep with both eyes closed, apart from ensuring longetivity, it makes you  healthy, wealthy and wise.

6. HEALTH CARE DIRECTING. 

Just like the Power of Attorney should go to the bank, your Health Care Directive should go to your doctor.  If there is an emergency, your family should”nt have to worry about finding your estate planning binder, digging out the Directive and bringing it to the emergency room.  If you give it to them ahead of time, the hospital can just look in their records.The appropriate physician, specialist, consultant of your choice should be specifically mentioned with specific directives on your   peculiar health issues, but with a contingency plan.

7. TRUSTEE

If you created your trust when your children were young, you probably named a trusted relative or friend as the trustee.  Now that your children are grown, it is time to review whether that should be changed.Its expedient to consider the advantages and benefits of having a reputable and independent trust Company especially those affiliated to your banks or finance institutions, to be incorporated into the list of trustees, they tend to operate with better corporate governance,personal interest or bias is eliminated, probity and accountability is secured with assurance of a liquid back up position, in the event  that claims are made against them.

8. BENEFICIARIES:

How you distribute your estate is unique to every family, and should be something that is reviewed regularly.  Does your estate plan accurately reflect your current wishes of who gets what?Try to be equitable and and objective, not subjective but ensure all your loved ones are forgiven and not forgotten.

9. FINANCIAL POSITION:

Some changes in financial situation can impact how your estate plan works.  In some instances recent changes in federal estate tax law can allow estate planning solicitors to simplify your estate plan.  If you’ve downsized and simplified, maybe your estate plan should be updated.  By the same token, if you’ve arrived , and your estate is significantly larger than it was when you created your estate plan originally, you should review your plan for the best tax and asset protection strategies.

10. FAMILY DYNAMICS

Some plans are built around assumptions about how children will react, or particular assets that one or two children care about that the others don’t.  You should review those assumptions regularly, and if they’ve changed, make sure your plan can either handle the change, or change your plan. 

EDUCATION ENDOWMENT FUND.

One key factor in the family dynamics that cannot be undermined is Education. It is most becoming of benefactors to factor in an Endowment Fund into the Trust for the benefit  of the uninterrupted  and progressive Education of their children, grand children,  relatives,   charities  or as many beneficiaries  as  may be designated  by the Trust Maker or Donor.

In conclusion, your family is relying on having an effective estate plan to save them from legal headaches.  Spend a few minutes each year to run through this quick checklist to make sure everything will work the way you want it to work.

The fore going are not completely exhaustive of what your RLT should include but they would have gone a long way to get you well started and positioned for a better future.Your RLT would be better complemented with a Will, your LW&T or as the case may be, cum will annexo.Your solicitor is better positioned to counsel you accordingly.

OLADIPO FOLA-ALADE 

Prime Counsel  – OFCLegal