Yes, you absolutely can require professional management of certain estate assets, and in many cases, it’s a prudent decision to ensure their continued growth and proper administration, especially for complex holdings or when beneficiaries lack the expertise or desire to manage them directly.
What are the benefits of professional asset management in estate planning?
Professional asset management within an estate plan offers several key advantages. For individuals with substantial or complex assets – real estate, businesses, investment portfolios – a professional trustee or money manager can provide expertise that family members may not possess. According to a Cerulli Associates report, approximately 63% of high-net-worth individuals utilize professional wealth management services. This isn’t simply about maximizing returns; it’s also about mitigating risk, ensuring compliance with tax laws, and providing impartial administration. Consider the scenario of a family business; professional management can ensure its continued success, preventing disputes among heirs and preserving its value for future generations. This oversight can prevent costly errors or missed opportunities, particularly in volatile market conditions.
How does a trustee handle asset management responsibilities?
A trustee’s duties regarding asset management are defined by both state law (like the California Probate Code) and the terms of the trust document. These duties include investing prudently, diversifying assets to minimize risk, and accounting for all income and expenses. Prudent investing doesn’t mean chasing high-risk, high-reward opportunities; it means making reasonable decisions based on the beneficiary’s needs, the time horizon, and the overall economic climate. A trustee must also adhere to the “Uniform Prudent Investor Act,” which emphasizes a risk-and-return approach to investing. This often includes engaging financial advisors, accountants, and other professionals to assist with the management process. A well-drafted trust document will clearly outline the trustee’s powers and limitations, providing a framework for responsible asset management.
What happened when the family tried to manage everything themselves?
Old Man Tiberius, a retired shipbuilder, created a trust for his antique boat collection, intending for his three children to manage it after his passing. He believed in their shared love for the sea and assumed they’d work together seamlessly. However, within months of his passing, disagreements erupted. One child wanted to sell the boats to simplify the estate, another insisted on restoring them at any cost, and the third simply wanted to let them deteriorate, feeling they represented a painful past. The boats fell into disrepair, insurance lapsed, and valuable pieces were lost due to neglect and internal conflict. The estate’s value plummeted, and legal battles ensued, costing the family a significant portion of what remained. It was a heartbreaking situation; their shared inheritance had become a source of animosity and financial ruin. They ended up needing to sell everything, at a fraction of its former value.
How did professional management resolve a similar estate situation?
The Harrington family faced a similar dilemma with a large portfolio of rental properties. The patriarch, a savvy real estate investor, had amassed a considerable estate but left it to his four children with a directive to continue managing the properties jointly. Initially, they attempted to work together, but conflicting schedules, differing opinions on maintenance and tenant selection, and simply a lack of time created significant challenges. Recognizing their limitations, they engaged Steve Bliss, an estate planning attorney, to appoint a professional property management company as co-trustee. This company handled all aspects of property management – tenant screening, repairs, rent collection, and financial reporting – freeing the children to focus on their own lives. The properties continued to generate income, were well-maintained, and the estate’s value was preserved. The Harrington children were grateful for the peace of mind and the financial security it provided.
Ultimately, deciding whether to require professional asset management depends on the complexity of your estate, the expertise of your beneficiaries, and your desire to ensure the long-term preservation of your wealth. A thoughtful estate plan, crafted with the assistance of a qualified attorney, can provide the framework for responsible asset management and a smooth transition of wealth to future generations.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- estate planning
- pet trust
- wills
- family trust
- estate planning attorney near me
- living trust
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How do I store my estate planning documents safely?” Or “How is probate different in each state?” or “How does a trust distribute assets to beneficiaries? and even: “Can I be denied bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.