What is the story about?
What's Happening?
An estate planning attorney, Jennifer Sawday, has provided advice on how to ensure easy access to short-term funds after death. The advice comes in response to a query about the challenges faced by a successor trustee in accessing funds from brokerage accounts after the account holder's death. Sawday suggests titling checking accounts in the name of a living trust to facilitate smoother transitions of control to successor trustees. This approach is recommended to avoid delays in accessing funds, which can be problematic when dealing with burial expenses and other immediate financial needs. Sawday also advises maintaining multiple checking accounts with trust-friendly banks to ensure accessibility.
Why It's Important?
The advice highlights the importance of strategic estate planning to prevent financial difficulties for trustees and beneficiaries. Titling accounts in the name of a trust can mitigate issues with banks that are slow to release funds upon a customer's death. This is crucial for managing immediate expenses and maintaining financial stability during the estate settlement process. The guidance also underscores the need for individuals to consult with estate planning attorneys to identify banks that offer better customer service and are more accommodating to trust arrangements.
What's Next?
Individuals are encouraged to review their current banking arrangements and consider retitling accounts to align with estate planning strategies. Consulting with estate planning attorneys can provide insights into which banks are more cooperative in handling trust accounts. This proactive approach can ensure that successor trustees have quick access to necessary funds, reducing stress and financial strain during the estate settlement process.
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