A letter of intent, while not legally binding, can be a remarkably useful document to accompany a testamentary trust, providing guidance to your trustee about your wishes without the rigidity of the trust document itself.
What are the benefits of a testamentary trust?
A testamentary trust is created through your will and comes into effect after your passing. This differs from a living trust, which is established during your lifetime. Testamentary trusts are incredibly versatile, allowing you to manage assets for beneficiaries – especially minors or those with special needs – offering control over how and when those assets are distributed. According to a recent study by the National Academy of Estate Planners, approximately 55% of Americans do not have an estate plan, leaving their assets subject to potentially lengthy and costly probate proceedings. A testamentary trust can help avoid this, streamlining the transfer of wealth and ensuring your intentions are carried out. They’re particularly useful for blended families, or where you want to protect assets from creditors or irresponsible spending.
Should I use a letter of intent alongside my trust?
While your testamentary trust outlines the *how* of asset distribution – the specific terms, timelines, and responsibilities – a letter of intent provides the *why* behind your decisions. It’s a space to express your values, explain your reasoning for certain distributions, and offer personal insights that wouldn’t be appropriate or practical to include in the formal trust document. Imagine, for instance, you’re leaving a portion of your estate to a grandchild pursuing a specific passion like marine biology. The trust dictates the funds available, but the letter can express your lifelong love of the ocean and your hope that your grandchild carries that forward. Think of it as a personal message to your trustee and beneficiaries, offering context and guidance. It’s a non-legally binding document that can add an immeasurable layer of understanding and intent.
What happened when Mr. Abernathy didn’t plan?
I remember a case with Mr. Abernathy, a carpenter with a knack for building beautiful things but little interest in paperwork. He passed away unexpectedly without a will or trust, leaving behind a small business, a home, and two grown children who hadn’t spoken in years. The resulting probate battle was agonizing, drawn out by disagreements over the value of the business and the disposition of the house. The legal fees ate up a significant portion of the estate, and the emotional toll on the children was devastating. They spent months fighting over possessions instead of remembering their father and honoring his legacy. Had Mr. Abernathy established even a simple testamentary trust, his wishes could have been clearly articulated, minimizing conflict and preserving the bulk of his estate for his children.
How did the Millers finally find peace of mind?
The Millers came to me after a difficult family situation. Mrs. Miller had recently passed, leaving behind a successful landscaping business and two adult children, one of whom was particularly adept at business and the other more artistically inclined. They wanted to ensure the business continued but also wanted to support their artist son’s endeavors. We established a testamentary trust with specific provisions for both. Alongside the trust, we drafted a detailed letter of intent explaining Mrs. Miller’s vision for the business – she wanted it to remain a family affair but also to embrace sustainable practices. For her son, the letter expressed her belief in his talent and her hope that he would continue to pursue his passion. This combination provided clarity and reassurance to both children, fostering a sense of unity and ensuring Mrs. Miller’s wishes were respected. The letter allowed the trustee to better understand the *spirit* of the trust, leading to decisions that aligned with Mrs. Miller’s values.
“Proper estate planning isn’t about death, it’s about life,”
It’s about ensuring your values and wishes are carried out, protecting your loved ones, and leaving a lasting legacy. A testamentary trust, paired with a thoughtfully written letter of intent, is a powerful tool for achieving these goals.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | estate planning attorney near me |
Map To Steve Bliss Law in Temecula:
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
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Feel free to ask Attorney Steve Bliss about: “What is a power of attorney and why do I need one?” Or “What are probate fees and who pays them?” or “How is a living trust different from a will? and even: “Will bankruptcy wipe out medical bills?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.