Estate Planning
Helping Family, Friends, and Neighbors Create Estate Plans for Over 20 Years
Thinking about your estate plan can be intimidating and even scary, but your family will appreciate your planning for the future. Our goal is to make creating your estate plan comfortable and simple for you. Lora Williams will provide highly competent, confidential, and individualized legal advice as you consider your most personal decisions. You can rest assured that she will work hard to help you find the best plan for you and your family for years to come.
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If you need to create your will, a power of attorney, a living trust, or a comprehensive family estate plan, call for an appointment at 812-663-7601.
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Let us help you leave your lasting legacy.
Steps to Take When a Loved One Dies with a Trust
We understand that the first moments after losing a loved one can feel overwhelming, both emotionally and practically. The initial steps you take can make the process of settling their affairs clearer and more manageable. Start by notifying close family and friends and any professionals, such as their attorney or financial advisor, then obtain multiple copies of the death certificate to use for legal and financial matters. Locate and secure important legal documents, including the will or trust, and notify the executor or trustee named in those documents so they can begin administering the estate or trust. You’ll also need to identify and secure assets, notify financial institutions, arrange funeral and burial plans, and consult with an experienced estate planning attorney who can guide you through probate or trust administration and help with any tax or legal issues that arise. These early actions lay the foundation for an orderly estate process and provide peace of mind during a difficult time.
For an easy reference, download our comprehensive first steps checklist to ensure you don’t miss anything important. Our checklist can help guide you through each task with confidence.
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​Please reach out to Williams Law Office, PC if you have questions about what to do after a loved one passes away with a trust, or if you need assistance with trust administration.
Living Trusts
A living trust is a legal entity established during a person's lifetime to manage their assets. Its primary purpose is to facilitate the distribution of assets to beneficiaries after the individual's death, often bypassing the probate process. Here are the key features and benefits of a living trust:
Key Features and Benefits of a Living Trust
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1. Avoidance of Probate: One of the main advantages is bypassing the probate process, which can be time-consuming, emotional, and expensive. Assets placed in a living trust can be distributed directly to beneficiaries without court involvement, leading to faster and more private asset transfer.
2. Privacy: Probate proceedings are public records, whereas a living trust allows for private distribution of assets. It keeps details of your estate and asset distribution confidential.
3. Incapacity Planning: A living trust can also provide for the management of assets in case the creator becomes incapacitated. In such situations, a successor trustee, appointed by the creator, can step in to manage the trust assets as per the creator's instructions.
4. Control and Flexibility: The creator of the trust retains control over the assets during their lifetime and can modify or revoke the trust as long as they are mentally competent. They can also outline specific instructions for how assets are to be managed and distributed after their death.
5. Simplified Distribution: Upon the creator's passing, the assets in the trust can be distributed to beneficiaries more quickly and with fewer complications compared to the probate process.
6. Continuity: A living trust can provide for the continued management and distribution of assets according to the creator's wishes even after their death, allowing for a smooth transition of assets.
A living trust can only manage those assets “owned” by or titled to the trust. Careful planning is needed to ensure all appropriate assets are transferred to the trust to maintain the benefits of the trust. Additionally, newly acquired assets should be purchased and maintained in the trust’s name.
Irrevocable Trust
An irrevocable trust is a powerful tool for safeguarding real estate and other large assets while planning for potential nursing home expenses. This trust, established by the settlor, provides peace of mind by ensuring the secure management of valuable real estate assets and protection from nursing home costs, provided that the transfer of the real estate to the trust occurred at least five years before the application for Medicaid.
Key Features of the Irrevocable Trust:
1. Trustee Selection: The trust is designed to be irrevocable, meaning the settlor relinquishes control and ownership of the assets placed within it. The trust must have a trustee who is not the settlor. This independent trustee takes on the responsibility of managing the real estate and making decisions regarding its use and potential distributions for the benefit of the beneficiaries.
2. Real Estate Protection: The primary objective of this irrevocable trust is to shield your real estate assets from nursing home costs. After a waiting period of five years from the date the real estate is transferred into the trust, the property is no longer considered a countable asset for Medicaid eligibility purposes, thus safeguarding it from being used to cover nursing home expenses.
3. Beneficiaries: The trust allows for the designation of beneficiaries who may ultimately benefit from the assets held within it. The assets in the trust cannot be transferred (or given) to the settlor, but the trustee can use trust funds for the benefit of these beneficiaries, subject to the trust's terms and the trustee's discretion.
4. Asset Preservation: By transferring your real estate and other large assets into this irrevocable trust, you are taking proactive steps to protect your assets and ensure they are preserved for the benefit of your chosen beneficiaries. This strategy offers a practical approach to long-term care planning without the need for asset depletion.
5. Five-Year Waiting Period: The critical element for Medicaid eligibility protection is the five-year waiting period. This ensures that the trust effectively mitigates nursing home costs while complying with Medicaid regulations. If nursing home care is required within five years, it is important to take strategic steps to pay for such care from private sources to preserve the assets in this trust.
Trust Administration Timeline
and Checklist
Trust administration in Indiana follows a general timeline, though the exact process can vary based on the size of the trust, the types of assets involved, and whether any issues arise. Shortly after death, the trustee should locate and secure the trust documents, identify and notify beneficiaries, confirm who is serving as trustee, and obtain a tax ID number for the trust if needed. Within the first 30 days, the trustee typically gathers and inventories trust assets, obtains valuations when necessary, and notifies banks and financial institutions of their authority to manage the trust.
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Over the next several months, the trustee addresses outstanding debts and tax obligations, determines whether estate tax filings are required, and begins distributing assets according to the trust’s terms. By around nine months, final distributions are often completed, a full accounting is prepared, and the trust can be formally closed once all responsibilities are fulfilled. Because every trust is different, working with an experienced attorney can help ensure compliance and avoid costly mistakes. Contact Williams Law Office, PC for guidance and support throughout the trust administration process.
Trustee Responsibilities
A trustee is the person or entity responsible for managing trust assets and carrying out the instructions outlined in the trust for the benefit of its beneficiaries. In Indiana, a trustee’s duties depend on the trust document and the type of assets involved, but the role generally requires careful organization, transparency, and adherence to fiduciary responsibilities. Trustees must locate and inventory trust assets, establish their authority with financial institutions, keep trust property separate, and maintain accurate records.
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Trustees are also responsible for communicating with beneficiaries, providing required documentation and regular accountings, distributing income and principal according to the trust’s terms, and handling all accounting and tax obligations. This includes paying valid expenses, managing receipts, and filing necessary tax returns. Because trustee duties can be complex and carry legal responsibility, working with an experienced attorney can help ensure everything is handled correctly.
Download the checklist below or call our office for more information.