How does EstateFlow handle trusts, beneficiary designations, and asset allocation?
EstateFlow is a powerful tool designed to model estate distributions accurately by leveraging key inputs and tools. This article explains how EstateFlow processes trusts, beneficiary designations, and asset allocation to determine distribution paths.
Overview of EstateFlow's Functionality
EstateFlow uses a combination of client-specific settings, estate documents, and asset-level data to model estate distributions. The platform ensures that the actual distribution path reflects legal ownership and beneficiary designations, even overriding will or revocable trust terms when necessary.
Key Tools in EstateFlow
EstateFlow relies on the following tools to manage and model estate distributions:
Asset Card: Represents individual assets and allows users to set direct beneficiary designations. Assets marked as "payable at death" are configured here.
Trust Card: Used to allocate assets to trusts, such as marital trusts, based on the Share Amount configured.
Ownership Balance Sheet: Displays all assets and their ownership details, serving as the foundation for modeling distributions.
Role of Beneficiary Designations
Beneficiary designations play a critical role in EstateFlow. These designations, set at the asset level, determine the distribution path of assets. For example:
Assets with direct beneficiary designations (e.g., "payable at death") bypass the terms of a will or revocable trust.
Trusts, such as marital trusts, inherit assets based on the configurations in the Trust Card.
Steps to Model Distributions Accurately
To ensure accurate modeling of estate distributions in EstateFlow, follow these steps:
Add the client’s assets to the Ownership Balance Sheet.
Set each asset’s beneficiary designation in the Asset Card.
Configure trust allocations using the Trust Card.
Review the distribution path to confirm it aligns with the client’s estate planning goals.
By following these steps, EstateFlow can accurately reflect the intended distribution of assets, ensuring compliance with legal ownership and beneficiary designations.