About a year and a half after his mother died, Jerry* and his son met with us for help settling her estate. Jerry said his mother’s estate consisted of her Pennsylvania home and he wasn’t sure what else. He added that his mother appointed him and his son as co-executors and named them equal co-beneficiaries.
We discovered that the current deed showed that the house is owned by his mother’s trust. Unfortunately, Jerry could not find either a deed that showed otherwise or any trust documents — which caused costly delays and complications.
It is important to have the trust documents because a trust may include directions or information separate from what a Will says. The trust document may name a trustee and/or beneficiaries different than what is written in the Will. A primary difference between a trust and a Will is that a trust can take effect during a person’s lifetime and can help avoid probate, whereas a Will only takes effect after death and may require probate court proceedings to distribute the assets.
While Jerry searched his mother’s house for the documents or clues as to where they may be, including if she worked with an attorney to prepare the trust, we contacted the local Register of Wills. However, not only did the Register’s office not have a copy of the missing documents, it was also demanding an update on the delayed status of settling the estate.
As the house sat vacant, unable to be fixed up or sold, the estate lost money. In addition, property taxes were accumulating. Adding to the costs is Pennsylvania’s inheritance taxes that become due nine months after the date of death.
Jerry’s situation shows why it’s crucial to let your family and/or trustees know where to locate your trust documents because these documents provide essential instructions and authority for managing and distributing your assets. If the documents are not easily accessible, it can lead to delays, confusion and potential legal disputes, undermining the trust’s purpose. Clear communication ensures that your wishes are honored promptly and reduces the emotional and financial burden on your loved ones during a difficult time.
Ensure your documents are organized and accessible to provide peace of mind and avoid costly delays for your loved ones. Don’t let confusion and legal disputes burden your family — reach out to TREEL’s experienced estate planning attorneys for assistance.
*Names and some details have been changed to protect the client’s privacy.
