Who Form 8854 Irrevocable 2023-2024

Hi, this is Lee Phillips. I'm an attorney who specializes in estate planning. Recently, I have noticed a common situation where parents pass away and their children are named as trustees in their living revocable trust. This is actually advantageous because it eliminates the need for the children to go to court and obtain a court order to act as trustees. As trustees, they have the authority to make decisions and manage the assets according to the terms of the trust. When the children assume their roles as trustees, they gain ownership of the bank accounts and the house held in the trust. If they decide to sell the house, the proceeds from the sale are deposited into the trust account rather than directly to the children. To distribute the funds, checks are issued and sent to all the kids. However, it is worth mentioning that as the trustee, it is not recommended to disburse all the money immediately after the parents' passing. Managing the estate is similar to managing a small business, so it is important to retain some funds for expenses such as maintenance and lawn care. It is not uncommon for parents to transfer real estate into the trust with the guidance of their lawyer. However, often parents neglect to update other financial accounts such as checking and brokerage accounts to include them in the trust. This oversight can create complications later on. For instance, if a property held in the trust is sold but there is no bank account under the trust's name, it is necessary to establish a dedicated bank account for the trust. This separate account ensures that the trust has its own financial resources and is capable of conducting transactions. As the trustee, it is also common to act as the executor or executrix, which...