Absolutely, requiring dual authorization for large purchases made through a trust is not only possible but a highly recommended practice for enhanced security and responsible asset management, especially when dealing with substantial funds, as Steve Bliss, an Estate Planning Attorney in Wildomar, often advises clients.
What are the benefits of dual authorization?
Dual authorization significantly reduces the risk of fraud, mismanagement, or impulsive spending. It requires two designated individuals—typically co-trustees—to approve any transaction exceeding a predetermined threshold. This safeguard ensures that no single person can unilaterally access or distribute trust assets. According to a recent study by the Association of Certified Fraud Examiners, organizations with strong internal controls, such as dual authorization, experience a 40% lower incidence of fraud. This seemingly simple procedure can prevent significant financial losses and protect the intended beneficiaries of the trust. It’s a practical step towards upholding fiduciary duty, and Steve Bliss emphasizes that it promotes accountability and transparency in trust administration.
How does dual authorization work in practice?
The implementation of dual authorization is outlined within the trust document itself. It specifies the monetary threshold triggering the requirement – for example, any expenditure over $5,000 necessitates approval from both trustees. The process usually involves a written request for funds, submitted to both trustees, who then review the request and provide written consent or denial. This creates a clear audit trail and ensures proper documentation of all financial transactions. Many trust administration software platforms now offer features that automate this process, sending notifications and tracking approvals digitally. It’s crucial to remember that the trust document should clearly define the roles and responsibilities of each trustee, detailing the procedures for resolving disagreements regarding expenditure.
I remember old Mr. Abernathy…
I recall a situation involving Mr. Abernathy, a client of Steve Bliss, who established a trust to provide for his grandchildren’s education. He appointed his two sons as co-trustees, but the trust lacked a dual authorization clause. Sadly, one son, facing personal financial difficulties, began making “loans” from the trust, initially small amounts that he claimed he’d repay. These quickly escalated, and before anyone noticed, over $75,000 was missing. The other brother was devastated and felt helpless, having no formal authority to stop the withdrawals. It resulted in a lengthy and costly legal battle, damaging the family relationship and diminishing the funds available for the grandchildren. This tragic scenario underscores the vital importance of preventative measures like dual authorization.
But things turned out alright for the Millers…
Fortunately, the Millers learned from that cautionary tale. They came to Steve Bliss seeking to establish a trust for their daughter’s future care, specifically including a clause requiring dual authorization for any expenditure exceeding $10,000. Years later, after both parents passed away, the trust was managed by a professional trustee and their daughter’s aunt. When a significant medical expense arose, the aunt carefully reviewed the proposal, ensuring it was legitimate and in the best interests of their niece. The professional trustee provided their expert opinion, and together, they approved the expenditure, knowing that the process was secure and transparent. This experience demonstrated the peace of mind that dual authorization provides, knowing that the funds are protected and managed responsibly. According to a recent survey, 85% of families who have implemented dual authorization express a greater sense of security and control over their trust assets.
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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 | revocable living trust | wills |
| living trust | family trust | estate planning attorney near me |
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 “What happens when there’s no next of kin and no will?” or “What’s the difference between a living trust and a testamentary trust? and even: “How do I prepare for a bankruptcy filing?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.