Five Takeaways From “Trust Planning for a Wealthier Life”
- Trust Planning Starts With a Roadmap and Clear Roles
First, determine who needs to be involved. As Ellen put it, “Not just who’s on the bus, but making sure that the right people are in the right seats on the bus.” These roles can include trustee, private professional fiduciary (PPF), case manager, financial advisor, accountant and/or trust protector. Iris emphasized the importance of surfacing and discussing the questions around successor trustees, guardianship, and values. “What we want to do as advisors is to really use these discussions to help clients develop a roadmap… so that you can really have a much deeper, more effective conversation with your estate attorney.”
Second, determine how the child or dependent should receive their inheritance in light of any challenges they might have. And third, determine where the child will live. One key insight that emerged was how important it is to involve the right people in clear, effective roles.
Having a clear roadmap allows families to align their priorities before they draft or update legal documents, ensuring that trust planning reflects their broader values and goals.
- Choosing a Trustee Requires Serious Thought
Selecting a trustee is one of the most important and often misunderstood steps. “Usually we recommend not naming the neurotypical sibling as the successor trustee,” Ellen noted. She explained that well-meaning siblings may not have the bandwidth, especially when balancing their own families or careers. “You’re also putting them as the gatekeeper of that disabled sibling’s money, and nobody likes a gatekeeper.”
Instead, families can consider private professional fiduciaries, banks and trust companies. It is important to speak to a trusted financial advisor and/or estate attorney to determine which professional fiduciary may be the best fit for your family situation. For oversight, Ellen often recommends naming a trust protector, someone who can “swoop in once a year, make sure that the dependent is taken care of, and then go back to where they live and continue their lives.” Advisors at Wealth Architects are well equipped to guide clients through these decisions and regularly facilitate family meetings to help ensure clarity, alignment, and confidence in the chosen structure.”
- Special Needs and Dynasty Trusts Serve Different Functions
The type of trusts that can be put in place depends heavily on a beneficiary’s financial independence and public benefits. As Ellen explained, “If the child’s receiving needs-based public benefits, you need a Special Needs Trust for sure.” Special Needs Trusts (SNTs) are designed to hold assets “and it doesn’t interfere with public benefits,” such as SSI and Medi-Cal.
For beneficiaries who do not receive needs-based public benefits, a dynasty trust might be more appropriate. “These trusts can be really helpful to protect multi-generational wealth… and also really good for long-term financial management.”
- A Memorandum of Intent Is Invaluable for Continuity of Care
A lesser-known, but vital planning tool is a Memorandum of Intent. As Ellen described, “This is basically, dear successor trustee, here’s everything I want you to know about my child.” While not legally binding, these documents serve as a bridge between a parent’s deep knowledge and the successor’s new responsibilities. “Trustees love these letters… it’s a brain dump.”
Memo updates are essential, especially as children grow or circumstances change. “They should be updated as your child grows and progresses,” Ellen advised. Iris noted that they can help trustees handle “the what-ifs… the big things that come out of the blue,” offering clarity during transitions.
- Planning for Housing and Independence Is Crucial
Where a child lives – especially one with special needs – is a major long-term consideration. “Living at home in a big house can be very isolating,” Ellen explained. “A lot of times there’s just not enough cash to keep the child in the house and it’s just not a good choice.”
Alternate options include apartments, ADUs, or group housing, potentially in partnership with other families. Iris added, “We have to think about whether it is the best thing for you to have the responsibility of 24/7 care. Or is it that maybe an alternate housing option is better because it gives both of you the ability to have the space and help needed?” It is important to have professionals, such as the advisors at Wealth Architects, prepare a financial analysis to confirm the affordability and suitability of alternate living options for the lifetime of the loved one.
Final Thoughts
Throughout the session, both speakers returned to the same core message: trust planning is about far more than legal structures. It’s about quality of life, legacy and values. As Iris summed it up: “Our goal really is to help you think that through really deeply… and bring that to someone like Ellen and her team to be able to help create that type of estate document that addresses the various facets… for safety for your family, for your longevity, your legacy.”
For families navigating these decisions, building the right team and having the right conversations early can make all the difference.
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