A licensed attorney since 2007, Cara Featherstone brings years of probate experience to her role as Senior Vice President and Trust Officer at American National Bank & Trust where she helps clients navigate difficult times as well as prepare for the future. During her career, Cara has served as dependent administrator, independent executor, guardian of the person, guardian of the estate, or receiver in more than one hundred cases.
“Many times, contacting a probate attorney is one of the first and only interactions a person has with the legal system. Usually, a person is distraught and managing grief all while trying to figure how to get bills paid, get access to funds to pay the bills, care for children, deal with creditors, secure property, etc.,” shares Cara. “It is extremely overwhelming and I love being able to help families in these situations. I enjoy helping families resolve conflict and get to a good status quo as well as providing a clear line of communication and plan for the future.”
As Cara guides clients through the planning process, it is important for them to understand the difference between a will and a trust as well as why they are essential in comprehensive planning. She shares these important pieces of information to consider.
Will vs. Trust
A will takes effect after a person dies and can name guardians for minor children and make disposition of assets. A trust can manage assets during a person’s lifetime and bypass probate.
Everyone Needs a Will
Having a will is absolutely necessary to determine what happens to your assets when you die. When someone passes without a will, the state dictates who inherits their assets in accordance with the laws of intestate succession. Thus, without a will, the Court doesn’t get to take into account the Decedent’s wishes or the fact that a child was estranged, etc. The Court is bound by the law which usually doesn’t match up with the families’ expectation of who is going to get what after someone passes away.
Guardianship and Care of Children
Most parents struggle with who is going to take care of their minor children or children with special needs when they die. Taking the time now to make a well-formed estate plan is essential.
Benefits of a Trust
Creating a trust allows families to plan for wealth succession. There are many tax reasons for creating a trust; however, utilizing a trust has so many other benefits. A trust is a good mechanism for controlling the flow of assets for a child/beneficiary with substance abuse or credit problems. A trust and estate plan can be as creative as the person drafting it, and the flexibility provides so many options that aren’t available when a person dies without a will or trust.
Understanding A Special Needs Trust
A Special Needs Trust is a unique tool that allows assets to flow to an individual while still maintaining their eligibility for government benefits.
When a person with special needs is receiving funds from a lawsuit settlement or inheriting funds, the creation of a special needs trust might be appropriate when a beneficiary would be eligible for government assistance programs like Medicaid or Medicare but for the existence of the trust assets. Our team works hard to understand and respect the unique needs of each beneficiary. We work hand in hand with families and are flexible in designing a plan to meet the beneficiary’s short- and long-term goals. My goal is to ensure the administration of the special needs trust not only complies with its terms but that the clients are treated with compassion and dignity.
A Trust Provides Clarity
If a person has a blended family, a trust can go a long way toward helping avoid conflict after his or her passing. Trusts also can help eliminate the necessity for loved ones to have to go through the lengthy and costly probate court process after death. A trust can facilitate charitable giving. A trust can also help preserve family wealth and legacy and provide protection from creditors and ex-spouses.
Planning for the Future
The future is unexpected. Certainty lies in the fact that everyone will pass away some day; we don’t live forever. Now is the time to be proactive about planning who will be guardian of your minor children when you are gone, how your debts are going to be handled, who will inherit your assets, etc.
I hear from a lot of folks that they don’t need a will or trust because they don’t have kids or because they don’t have enough money to worry about. That’s the wrong way of thinking. Every person can benefit from planning.
For more information on planning for the future and to schedule an initial consultation, reach out to Cara Featherstone by calling 817-505-2154 or emailing cara.featherstone@amnat.com.