The Lesson This couple’s situation is not unusual. Many families believe they are “covered” because they set up a trust or drafted a will. But unless those documents are properly designed, maintained, and funded, the truth is: • Their wealth may not pass as they intended. • Their family may face unnecessary taxes, delays, and expenses. • Their legacy may be diminished by probate and poor planning. • This story highlights why true estate planning is more than simply creating documents — it requires ongoing review, proper funding of trusts, and strategies that protect assets while minimizing taxes and fees. A Case Study: Taking Back Control During my review with this couple, we uncovered another serious issue. Their original attorney — the same one who set up their trusts — had also named himself as Trustee of their two Irrevocable Life Insurance Trusts, valued at $1.5 million. In other words, this attorney had nearly total control over their estate. Here’s the truth: you should always be in control of your assets. Not an attorney. Not a financial advisor. Not a bank. If possible, that responsibility should remain within the family. Fortunately, the couple was able to correct these mistakes with the help of our estate planning software. Drafted a new Revocable Living Trust (ABC Trust) with a Bypass provision and a QTIP Trust for excess funds. Ensured all of their assets were properly titled into their new trust, thereby avoiding Probate. Replaced their old attorney as Trustee of the life insurance trusts and named their daughter as Trustee, putting control back in the family’s hands.
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