QUESTION
Is it common to give one of two beneficiaries of a living trust full power of attorney?
Asked on May 13th, 2015 on Trusts and Estates - California
More details to this question:
My wife & I have a living trust with our 2 Children named as co-executors. One of our Children believes they should have total control and have the power to make final decisions in any category regardless of their sibling's wishes, including ability to change the content of the trust and or will. I don't like the idea of putting full control in anyone's hands if there are other(s) involved (This has nothing to do with trust). Is it common to give one person that kind of power? or is it more common to name co-executors requiring them to agree on issues not clearly spelled out in the trust? Example: Who gets Dad's riding lawn mower?
1 ANSWER
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It is your trust - YOU decide what is best. It is common for there to be co-trustees, and it is also common for a parent to choose one child - the one the parent believes has greater ability to manage financial matters - as sole trustee. That sole trustee can select what items each beneficiary receives, unless the trust specifies that specific items are to go to specific beneficiaries. What is not common is for a successor trustee to have the power to change the value of the benefit being received by each beneficiary, or when a beneficiary is to receive his or her distribution. Say you wish for both chldren to receive the same percentage value of the trust.... The trustee may select a number of items valued at 50% of the whole value and distribute those to one beneficiary and the rest of the estate will be distributed to the other beneficiary.
Answered on May 13th, 2015 at 3:21 PM