Bluffton South Carolina Estate Planning Law Blog

When parents or grandparents in South Carolina create a trust for a child, they often wonder if they should tell them about it. Many of these children won't see the benefits of the trust for many years, but even the knowledge of the benefits may affect their behavior. The creator of the trust may have concerns that the beneficiary will lose ambition or feel entitled. Conversely, they don't want the child to be worried about their financial future.

In some jurisdictions, the grantor doesn't have any legal way to prevent beneficiaries from learning about a trust, even if they're children. Some states require that beneficiaries be reasonably informed about their trusts so that they have the chance to protect their interests. They usually have the right to access an annual accounting statement. Some information may be restricted before the age of 25.

When people in South Carolina think about planning for the future, they may wonder about the opportunities provided by instruments like trusts, which can be flexible and offer additional control. In addition to a will, many people opt to create trusts, especially if they want to pass property to minor relatives or otherwise direct a more complex distribution that may be possible in a will. After a trust has been established, people may wonder if they can make a second or additional trust.

A trust only manages the distribution of property that has already been assigned to it. Therefore, if people want to distribute that property differently than how it was designed in the original trust, they can make an amendment to change the trust document. In addition, if they want to completely replace the text of the original trust, they can create an restatement. Of course, as long as the trust is revocable, the creator can also revoke it and later create an additional document. In many cases, people can address their concerns through some form of an amendment.

South Carolina residents who are creating estate plans should watch out for several common errors. For example, some estate owners forget to leave information where it can be easily found by executors or beneficiaries. It is best to make a complete list of all assets and their locations. This includes mortgage paperwork, information on bank accounts and paperwork associated with insurance policies. There are also sentimental assets that a person might want to identify. Furthermore, estate owners should not neglect digital assets.

Another common error involves beneficiary designations. Certain types of assets, such as retirement accounts, are passed on by beneficiary designation instead of wills or trusts. Instructions in a will or trust do not override what is on the beneficiary designation. If the beneficiary designation is not completed correctly or is in conflict with other estate planning documents, the assets could end up in probate. This could be costly and time-consuming.

South Carolina residents can create an estate plan to ensure that their assets are managed according to their wishes after they have died. This can apply to cash, real estate and other assets such as heirlooms and art. For the hard assets, it is important that certain steps are taken to make that they are addressed properly in the estate plan.

Whether an asset or the revenue from the sale of the asset is to be bequeathed directly to an heir, it is necessary to know the fair market value of the asset. Having this number lays the foundation for the plan.