This session of the Private Client West Cost Forum 2024 discussed best avenues for family offices and their advisors to consider when managing a complex post-death administration, including steps to address and anticipate future challenges, minimize or avoid court proceedings and litigation, reduce tensions during administration, and account for liquidity needs and asset preservation.
Session panelists included Laurelle M. Gutierrez and Nicole M. Pearl.
In Depth
Key takeaways included:
- Planning ahead is very important to ensure a successful trust administration that carries out the client’s intended estate plan. Clients should have a revocable trust and a pour-over will to avoid probate and court proceedings after death and should also anticipate notice requirements and address privacy concerns when making specific gifts.
- To reduce tensions during trust administration, it is important to select the right fiduciaries. These fiduciaries should be individuals or organizations that can commit their time and have demonstrated an ability to communicate well and make informed decisions.
- When preparing for trust administration, it is important to address potential liquidity needs to pay taxes, expenses, and to address the needs of the beneficiaries. Liquidity sources can include proceeds from the sale of assets, life insurance proceeds, or borrowed funds.
- Lifetime planning structures should be reviewed to identify potential estate tax and audit risks, to ensure the efficient use of all available tax exemptions and to consider the impact of discounts and basis.
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