For an estate plan to work, the plan must be properly funded. In this topic, you will learn the thought processes, practical impediments, and solutions to ensure that a client’s plan is well-funded. Specifically, we will discuss identifying assets, determining what assets should and should not be funded into a trust, dealing with assets that pass by beneficiary designation, and funding logistically. This material will provide you with an understanding of what is necessary to properly fund a client’s estate plan.
Learning Objectives
- You will be able to define marshalling assets.
- You will be able to review the process of marshalling assets.
- You will be able to identify what to consider when handling unusual assets.
- You will be able to discuss guidelines for marshalling assets in an estate plan.
Agenda
What Is Marshalling Assets? (Trust Funding)
- Ascertain the Assets of the Estate
- The Process of Gathering, Organizing, Ranking, and Dispersing Assets in a Manner That Determines Value, Discharges Debt, and Prepares for Distribution Under the Trust Instrument’s Instructions
Process of Marshalling Assets
- Marshalling Assets Is Important in Estate Planning (Discussed Below)
- Marshalling Assets Is Also Important in Trust and Estate Administration
- Trustee and Counsel Are Responsible for Marshalling in Trust Administration
- Discussion of Role of Attorney and Role of Client
Why Marshalling Assets Is Important
- If There Is a Trust, It Must Be Funded
- It Is Impossible to Manage the Estate Until the Assets Are Identified and Collected
- Important to Safeguard the Assets Because Sometimes They Tend to ‘Walk off’ or Disappear After Death
What Assets Should Be Considered
- Discussion of How to Marshal the Following Assets
- Real Estate
- Bank, Savings, Loan Accounts and Securities
- Business Interests
- Insurance and Related Benefits
- Joint Tenancy Assets
- Digital Assets
- Tangible Personal Property
Handling Unusual Assets
- Consider That Some People May Have Hidden Cash or Other Valuables in Odd Places Around Their Homes or in Clothing Pockets
- Access to Safe Deposit Boxes
- Pets? Some People Devise the Pet and Money to Care for the Pet Upon Their Death
- Firearms
Guidelines for Marshalling Assets in an Estate Plan
- Clients Sometimes Forget What Assets They Have - Ask Probing Questions to Try to Uncover Things They May Have Missed
- Encourage the Need for Ongoing Maintenance of the Trust
- Marshalling Assets Can Be Very Time Consuming; Incorporate ‘Time Suck’ Into Your Fee (If Flat Fee)
Complications and Misunderstandings
- Confusion About Who Does What Between Attorney and Client
- Marshaling Assets Can Be Particularly Complex When Multiple Fiduciaries Are Named to Serve Different Roles
Speakers
Vanessa M. Terzian,
Lagerlof, LLPPartner at Lagerlof, LLP
Specializing in estate planning, trust administration and probate
Adjunct professor of trust and wills, Southwestern Law School
Rising Star, Super Lawyers, 2015 - 2017
Wrote “Trustee’s, Executors and Beneficiaries”, published by the Institute for Preparing Heirs
Active member of the California State Bar and member of the Trusts and Estates section
J.D. degree, dean's honors and recipient of dean's full tuition academic scholarship, Loyola Law School; B.A. degree, magna cum laude, UCSD
Can be contacted at 626-683-7234, vterzian@lagerlof.com or lagerlof.com
