Who Holds Original Trust Documents

Regardless of whether the estate planning document is a trust or a will, it is always important that the responsible person has the document after the death. For a will, it must be the original; For a relationship of trust, it can be a copy. What recourse do you have if you do not have a copy of the trust documents? If you know the lawyer who designed the trust, you can contact them to request a copy. However, if this lawyer has retired or died, it can be difficult to find the location of the transferred files. A lost escrow document is not a big deal if the trust has never been funded with assets. However, it is a very big problem if there are bank accounts, real estate or investments that have been funded in the trust. Our preferred approach: Give copies to everyone who will be affected. This usually includes your children, the agents named in your powers of attorney, your successor trustee – just about everyone. But this is not necessary, and it can sometimes have unexpected effects. If you have lost your trusted documents and cannot find a copy of them, you must revoke the lost trust.

You can then create a new trust to replace the old one. A revocable living trust is included in the estate plan based on the trust and will. The main reason for sharing copies of your will and your trust: to give your family the chance to confirm that you really intended what you wrote. But there is also an important secondary reason: you need to let people know what responsibilities they will have. Can you or a family member find your trust (a copy) or will (the original)? Even if you are not comfortable sharing your will and/or trust with your family, we believe you should provide copies of your powers of attorney. What for? Because these documents identify the person who needs to act, perhaps on very short notice if you are injured or sick. To ensure access to documents in the event of an emergency, we offer our customers subscriptions to DocuBank, a third-party online document storage service that manages scanned copies of your documents. While access to originals is always crucial in some circumstances, it can be extremely helpful to securely store copies of your documents, but also make them accessible to those who need them. Please call us to learn more about this service. Some states consider trust or estate assets to be taxable for federal or state discount purposes. Upon request, a copy of the escrow agreement must be filed with the IRS or state tax authority along with the estate tax return. First, let`s say a word about what you need to do with the original documents.

We have already written about this, and we have written about it in more detail. In fact, we wrote about what we should NOT do with the documents. We responded to a friend and colleague`s post on this topic, which we still think is pretty good. The trust accountant must receive a copy of the trust agreement to carry out instructions on how to repay the trust`s debts and to ensure that the successor trustee is within his or her authority to settle the trust. An accountant can also split estate and income taxes, allocate the income and capital of the estate and trust, and determine when and if escrow accounts should be returned to the beneficiaries of the trust. Fiction? Unfortunately, no. Lost trust instruments are quite common, especially with older trusted documents. The settlors (who formed the original trusts) often served as original trustees and were the only ones in possession of the trust document.

Documents are often lost when dealers move or close a locker. Sometimes documents are destroyed accidentally or intentionally. Or sometimes, as in the first example, licensors simply forget where the document is stored. A trust contains important information about the transfer of a person`s property and property in the event of death. It`s not a document you want to lose when you need it most. Here`s how to protect your fiduciary records: If you`re a settlor or trustee, consider depositing a trust`s memorandum in the deed`s records, sharing the actual document with beneficiaries or a trusted advisor, or placing it in a locker and informing beneficiaries. In other cases, when the grantor moves or closes its safe, the original document is lost. Sometimes the original document is accidentally or even intentionally destroyed. Or the settlor can`t find the trust alive because they don`t remember where it was stored! If you can`t find your original documents, it`s best to find a new lawyer and review your estate plan.

You can perform a trust customization that specifies that the new approval terms replace or replace the previous terms. Should the original documents stay with us or go home with you? We have preferred the latter for a long time; Other lawyers regularly keep original documents, but this is usually not the case. But we know that originals are more likely to be lost or misplaced in your home than in our office. This means that you need to keep track of the documents. For many, many years — from the Stone Age to 2011, to be exact — Texas lawyers have regularly recommended trusts to their clients to minimize or avoid estate taxes. Many clients have listened to the siren song, and hundreds, no, thousands of trusts have been formed. The escrow documents were sent home with the clients, who of course stored them in very safe and secret places. The trust disappeared when one of Leonard`s children, who had not been named as a beneficiary, brought the document to his home after his death.