How Does a Trust Work When I Die? Who Controls It? (What Happens to a Trust When Someone Dies)
Channel: Esquire Group
Date: 2022-07-13

How Does a Trust Work When I Die? Who Controls It? (What Happens to a Trust When Someone Dies)

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In today's video, I will explain what happens to your trust after your death and different strategies to ensure that control of your trust passes to the right people (or person).

Private Trust Companies (PTCs) are commonly used to serve as trustees by HNWIs. A succession plan must be in place to pass control of the PTC as desired. Ownership interests in the PTC must be accounted for whether you own the PTC personally or by a purpose trust or purpose foundation.

Personally holding the PTC ownership interests causes them to transfer to your heirs upon your death. This is often undesirable because heirs may infight about how the trust operates and sometimes elect the wrong people to the PTC board. Electing the board of the PTC is critically important.

Depending on your preferences, board members could be restricted to your family, friends, trusted advisors, professional trustees, or any combination that you find appropriate. Usually the shareholders of the PTC elect its board. However, board members may also be allowed to name their own successor. Or, if desired, they can vote to fill vacancies. Beneficiaries may, alternatively, be allowed to vote for PTC board members. The trust’s protector may also be given voting power. The options are limitless.

Alternatively, you may select a professional trustee to control your trust after your death. This option streamlines long-term planning because most professional trustees operate as a company which exists in perpetuity - it’s possible that no changes are necessary for many generations.

To exercise influence over the board after your death, you may also write a Letter of Wishes to guide the trustee.

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Website: https://esquiregroup.com

About Jimmy Sexton:

Hi! I am Jimmy Sexton, LL.M. - Founder & CEO of Esquire Group. I founded Esquire Group with the objective of helping and inspiring wealthy families, investors, entrepreneurs, and high-level executives obtain and gain control over and protect their wealth, via strategic wealth planning.

Connect with me on LinkedIn: https://www.linkedin.com/in/jimmysextonllm/

Disclaimer:

This video is prepared for educational purposes only. This video is not legal, tax or any other type of advice. Each individuals’ circumstances are different, you should seek legal and/or tax advice to address your specific situation and any questions you may have.