Hawaii Living Trusts
In Hawaii, trusts and estates often require a qualified attorney to help you reduce taxes and avoid expensive and time-consuming probate processes. At the Law Offices of Reuben S. F. Wong, our trusts attorneys in Hawaii want to help you understand more about trusts, estate planning and living trusts.
By definition, living trusts are established before the grantor (settlor) dies. Terms of the trust are laid out in a declaration of trust, a document that is similar to a last will and testament. But the declaration of trust does not replace a will. A will covers items not included in the trust such as guardianship of minor children, autos and personal checking accounts.
Trusts and Estates in Hawaii
Once it is established, a living trust owns the assets named in the document. But when you are the grantor (settlor, the person whose estate is being bequeathed), you hold control of the property covered by the trust. Effectively, this means you can change the size and terms of the trust at any time. But you must also name a successor trustee, someone to manage the trust for you if you are incapacitated or when you die.
Who can serve as the successor trustee? Either an individual or a legal entity, such as a bank, can serve in such a role. Each can be advantageous in different circumstances:
- Individual successor trustee: This can be a close relative, a spouse, a trusted long-term friend or an attorney. The duties of a trustee include identifying fair market value of assets, and reassigning titles of properties to the person who receives an asset in distribution. In the case of a sizable or complicated estate, however, the task can be very challenging to a non-professional.
- Legal entity (trust company) trustee: A trust company lends technical expertise and objectivity to the process. If there are assets of variable value, such as an operating business or artwork, the trust company can call in business or other valuation experts who can determine fair market value. The third-party nature of trust companies in this role can reduce tensions and disagreements among beneficiaries.
If a trust company is engaged, it does not replace the role of the family lawyer or accountant.
By either method, a proactive approach to Hawaii trusts and estates can save time and money that is otherwise spent in the probate court system. At the Law Offices of Reuben S.F. Wong, our Hawaii trusts lawyers cultivate long-standing relationships with our clients, based on trust and open lines of communication. For the convenience of our clients, weekend appointments are available, and we provide services in Mandarin and Cantonese.
