Our Fiduciary Services

What is a will? What is a trust? Why do I even need them? 

 

The will is the map, the trust is the treasure. 

 

Wills (Who, How)

Testator -> Executor -> Beneficiaries

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A will is a straightforward letter you write that says, “When I die, here’s who gets my stuff and how.” It only kicks in after you’re gone, and it’s like your final say — naming people to get your things, who takes care of your kids, who gets the guitar amp, the cars, or even your pets. But it usually has to go through probate, which can take a plethora of time and be a hassle. Yuck! The creator is titled a Testator, the person carrying out the will is the Executor, and the 'who gets my stuff' are the Beneficiaries. 

 

Trusts (What, When)

Trustors -> Trustees -> Beneficiaries

To try to put it as simple as possible - a trust is like a special container you put your stuff (money, house, investments, etc.) into while you are alive. Got crypto? You'll want it in there. When you do this, you are called the settler, grantor, or trustor. Gosh - lots of terms for the same thing here - let's go with trustor. When you create it, you're essentially the trustee as well. Yeah, it gets a bit like that movie Inception - but here it's written down so no one has to guess the ending. 

 

There are many types of trusts, but generally they fall into ones that do stuff when you're alive, and then when you die. You can combine this with someone who has special needs, ones for charity, and so on. 

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You pick someone you trust (a trustee) to manage it, and you decide who gets your belongings (the beneficiaries) and when. This can happen after you pass away, or sometimes under certain conditions. A certain condition example - you might want to leave some of your money aside for a child when they turn 18. You could gift their parent(s) this money now, entrusting them to uphold what you want, but you might just want to do it your way for various reasons.  

 

A trust is a way to control what happens to your things without everything going through a big public court process (probate - ugh). Think of it as a private instruction manual for your assets. When I say private, only yourself and certain people know about it. For example, your partner might create one with you, making both of you its trustors. When certain conditions happen, for instance, you pass away, then beneficiaries can know. In the same way, your partner could be trustee as well - until they die. Then, another trustee picks up the giving work to your beneficiaries. 

Fund your Trust!

Even after you get your trust done (you sign it, notarize it, birthday cake and champagne is served, everyone says yay!), there is a super-duper crucial step you have to do after this. Simply put, you have to fund it! If you don't, that container mentioned above has items in it, but instead of boxes neatly aligned in the container, each box's borders are dashed lines. No bueno! 

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How do you do this? Your attorney should give you outlines. Let's say that your trust name is "The Earth 1616 Avengers Living Trust". Once you're in contact with a bank, they should ask for specific form(s) to prove you have a trust. The bank account name might be in this instance titled as "Howard Stark & Steve Rogers Co-trustees The Earth 1616 Avengers Living Trust". 

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If you don't have a trust funded, or partially funded, then it could be subject to probate and its disadvantages. 

 

Probate Woes

Keep this in mind! Probate can eat up 4-8% (or more) of your wealth, is a time-consuming process, and the public will know about it. There are wolves out there - and you might be putting an extraordinary burden on your trustee after you die. See my probate section for more details. 

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Other Woes 

Without a will or trust, the court can ultimately can decide who gets what, and it might not be what you’d want. What if your weird cousin inherits everything instead of your best friend or your favorite charity? Or if you’ve got a complicated family (exes, stepkids, etc.), a trust can make sure your wishes are clear and drama-protected. Even if you’re not rich, these tools help avoid a mess for the people left behind. Please never assume that they can do it all. Leave a map instead of a puzzle. Puzzles are great for game night, but maps can be the guides to survival in future dungeons. Ok - maybe I played too much Zelda as a kid, but you get my drift. 

 

What I Do

Where could Hodde Fiduciary come into play?

 

Sometimes, you need someone to help you setup everything that happens during this process. I can be your trustee or executor. What if you know your children or inheritors will not agree with what your wishes are? What if you don't want to burden them with this? This is where I come in, and I work with attorneys, tax accounts, and financial advisors to help you plan for forever, starting right now. 

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An attorney will draft up the trust and will to ensure things are legally solid. They'll work with me to ensure that your needs are met appropriately. I'll be the one helping to manage the assets for you and your beneficiaries, and will follow these legal guidelines so that everyone is treated fairly. 

 

Examples

Here's some examples of not having a will or trust. There are so many more, feel free to contact me to discuss. 

 

No trust example: Your will states that everything should go to your kids James and Emille. James and Emille get along, but have families of their own, and different areas they live in. They'll have to figure out where all of your stuff is (you hid your passwords in your computer but forgot to write down a few in your head), dealing with grief. What about your 2 401K's from previous employers that had your ex-husband as a beneficiary on it. Even if they do find it all, and things are setup to go to everyone equitably - how much time have they sunk into it to figure out who gets what? Also, they'll have to go into probate, get an attorney, and rearrange their lives to accommodate the situation at hand. This doesn't seem fair to them.

 

No trust example: You could have given your 3 million-dollar home to your daughter Irene, and your 1.5 million-dollar IRA to your other daughter Tina. Without a trust, it's decided that they both get 1/2 of each - triggering that they'll have to figure out exactly how to do this. What could have been simpler becomes mired in court dates, multiple attorney consultations ($$$), fixing up and selling the property and giving Tina some of the proceeds. By the end of it, your kids are tired, grieving, happy with what you gave them but considering if it was fair in their minds - and still conflicted about how it all went down. 

 

No will example: You die and your beloved dogs Kirk and Scottie are there. 3 people want them - who decides who gets to keep them? The court will, if all the people involved cannot figure it out. 

 

No will example: You die and your child does not have a parent. One aunt wants to help take care of them, but two other friends do as well. Let's say that you verbally said that you wanted one of your friends to do this, because you know your aunt has a lot going on and sometimes helps too much for her own good. But, it was verbal and there is no record of her saying it. Who decides? The court, if all the people involved cannot figure it out. Even if you verbally said one of your friends, your aunt might get the dogs. 

 

No will example: You die and have many heirlooms in your home, such as artwork, guitars, expensive tools in the garage, even the home. You have 4 children, all arranged in different areas - some get along and others don't. Without explicit instuction - can you imagine how things will be between them? Even if they all got along, sometimes grief can take hold and make responsible children argue over these things.