Secret Trusts
Can You Create a Trust Without Your Loved Ones Knowing?
A secret trust may sound scandalous, but it can be a valuable, powerful tool. This month, we searched the depths of our files to find a 2018 Sanibel Island Sun Column from attorney Craig Hersch that walks readers through this very idea. You can read the full version of “Secret Trusts” at FloridaEstatePlanning.com. Many clients have expressed a desire to create trusts for loved ones but to not let the loved one know that the trust exists, or, at a minimum, to not disclose the value of the assets held by the trust or the amount of income generated. I understand the goals typically include not sapping a beneficiary’s drive, protecting a surviving spouse from children’s or stepchildren’s demands, and even to protect a beneficiary from their own choices. The challenge one faces when attempting to hide trust information from beneficiaries is state law. In Florida, like most other states, a trustee has a duty to annually account to “qualified beneficiaries.” When the grantor dies, the trust typically becomes irrevocable and may continue on for a spouse, their children, or other loved ones. An income, principal, or remainder beneficiary of a trust then becomes “qualified” and consequently entitled to receive the trust information. At that point the trustee, under state law, must provide the beneficiaries a copy of the trust as well as annual information relating to the amount of assets owned by the trust, capital gains
and losses realized, income earned, distributions made, expenses paid, and other “significant items” as defined under the law. If a trustee fails to provide this information they could be removed, and the trustee can be held financially liable for transactions that ultimately aren’t prudent or reasonable once discovered. The reason for these laws becomes evident when you consider that a trustee is not governed by a court, which means negligence and fraud could go unchecked. Assuming a client wants a secret trust, how does this work? The answer lies in finding a state that allows for nondisclosure. A variety of states meet this bill. I have drafted Nevada trusts for my Florida clients who wish to hide trusts and assets from beneficiaries. The process is more complicated and requires a trustee in that state to serve. We also ask a Nevada attorney to review the trust for state law sufficiency, and in the best circumstances, the Nevada trustee has more than simple administrative powers. They usually also must have discretionary distribution powers for the trust to achieve the stated goals. No two secret trusts are drafted the same. If creating a secret trust is important to you, seek out a qualified estate planning attorney, and be prepared to specifically describe your situation, reasons, and goals.
Take a Break
Healthy eating doesn’t have to be bland with this citrusy chicken
INGREDIENTS
• • • • •
1/4 tsp salt
•
1/3 cup and 2 tbsp olive oil, divided 4 boneless chicken breasts 1 clove of garlic, minced
1/2 cup parsley, chopped 1/3 cup mint, chopped
• •
1 1/2 tsp pepper
1 lemon, for juice and zest
DIRECTIONS 1. Preheat oven to 450 F. 2. In a large ovenproof skillet, heat 2 tbsp olive oil.
Take a Break
3. Season chicken with salt and pepper if desired and sear it in the skillet for 3 minutes on each side. Bake chicken until its internal temperature is 165 F. 4. In a blender, add 1/3 cup olive oil, garlic, salt, parsley, mint, pepper, and lemon zest and juice and blend ingredients until coarsely mixed. 5. Top chicken with sauce and serve!
3
(239) 265-9779
Made with FlippingBook Ebook Creator