How can trusts protect elderly people from financial elder abuse?
Answered at 27:19 in Estate Planning as an Expression of Love and Responsibility (Ep. 148) · Wealth Is In The Details Podcast
How can trusts protect elderly people from financial elder abuse?
Adding a second trustee to a trust can serve as a protection against elder financial abuse by requiring co-approval for large distributions, allowing the co-trustee to question unusual transactions. This is an increasingly serious problem where vulnerable people lose hundreds of thousands of dollars, regardless of intelligence or education.
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In short
Adding a second trustee to a trust can serve as a protection against elder financial abuse by requiring co-approval for large distributions, allowing the co-trustee to question unusual transactions.
Peter Raskin, Financial Planner at Raskin Planning · Estate Planning as an Expression of Love and Responsibility (Ep. 148) · Wealth Is In The Details Podcast · answer at 27:19
Key takeaways
- Adding a second trustee to a trust can serve as a protection against elder financial abuse by requiring co-approval for large distributions, allowing the co-trustee to question unusual transactions.
Quote to remember
“When we make the world easier for our heirs, when we make the world easier and more secure, we're showing them that we love them.”
— Peter Raskin
The full answer · about 1 min
Adding a second trustee to a trust can serve as a protection against elder financial abuse by requiring co-approval for large distributions, allowing the co-trustee to question unusual transactions. This is an increasingly serious problem where vulnerable people lose hundreds of thousands of dollars, regardless of intelligence or education.
Key facts
- Executor or personal representative job typically lasts 6 to 18 months
- Probate process can take 3, 6, 8, 18, or 24 months depending on complexity
- Federal estate tax threshold: $15 million for single individuals, $30 million for married couples
- Many clients have multiple accounts across different banks, ranging from 6 to 9 or more accounts
- Powers of attorney should be updated within 5 years
People, companies and topics mentioned
More answers from this episode
- 7:51What are the six essential estate planning documents recommended by financial planners?
- 15:05How can a revocable living trust help avoid probate and protect heirs?
- 15:50What is the difference between a revocable living trust and an irrevocable trust?
- 17:44Why should people consolidate multiple bank and investment accounts as part of estate planning?
- 25:09What protections should be considered if children lack financial capacity or face personal risks from inheritance?