The financial implications of aging

Welcome to another episode of the “Professionals of the Inland Empire” podcast hosted by John Tulac. Today’s guests are Genene Dunn, an estate planning attorney, and Jacob Averett, a professional fiduciary to discuss the financial implications of aging and planning for estate management.

Dunn leads a firm focused entirely on trusts and estates. Their practice encompasses three main areas: estate planning, probate, and trust administration. Estate planning involves the creation of documents necessary for managing assets after death, including trusts, wills, and powers of attorney. The probate process involves managing the court process for assets owned by individuals without a trust at the time of death. Trust administration focuses on providing guidance to trustees and families regarding the management of a trust after the death of the trust creator.

The primary aim of estate planning is to avoid the probate process, which can be expensive and time-consuming. Assets placed in a trust do not go through probate, thereby saving heirs time and costs. If only wills are in place, probate may still occur, especially after the death of a second spouse. Wills alone do not eliminate the possibility of probate, particularly if an estate carries significant value without a trust. Financial thresholds that require consideration for establishing a trust include real estate valued at or above $55,000 due to title ownership complexities and non-real estate assets, such as accounts over $185,000 without joint owners or beneficiaries, which may also necessitate court proceedings.

Averett is a licensed professional fiduciary who deals with similar matters as Genene. He administers trusts and handles processes typically undertaken by family members. His role encompasses overseeing trust administration and conservatorships, acting as neutral parties to ensure compliance and proper asset management, especially when family dynamics are strained. Professional fiduciaries are licensed and educated in these processes, ensuring proper bonds can be applied, unlike non-professional administrators.

Averett obtains cases primarily through referrals from attorneys when conflicts arise or administrative help becomes necessary. Ideally, individuals should engage professional fiduciaries proactively before any issues arise to ensure a smooth transition of asset management. He highlights the necessity of considering family dynamics, particularly if tensions exist among heirs. These conflicts can escalate and complicate trust management, and involving a professional fiduciary early in planning can help to avoid future disputes.

Dunn discusses the fiduciary standard, which represents an elevated level of care and accountability in managing someone else’s money or property. Both family members in fiduciary roles and licensed fiduciaries share this responsibility, but professionals have the training to better manage potential issues. Common problems often arise with non-professionals, as many families’ members neglect record-keeping and proper oversight when managing estates, leading to discrepancies and potential disputes with beneficiaries. It is crucial for those acting in a fiduciary capacity to maintain detailed accounts of transactions and decisions regarding assets.

Both Dunn and Averett highlight the financial implications of aging, healthcare needs, and estate management, with depletion analyses potentially conducted to forecast how long resources can sustain individuals as care becomes increasingly complex.

The PIE podcast aims to showcase Inland Empire professional talent, foster local economic development, and highlight the Provisors networking community. Catch the full show on YouTube @ProfessionalsofInlandEmpire.