Drafts the Estate Planning Documents You Need Every Day
Many products boast long laundry lists of forms you might use once a
year, yet include only limited options for the document you draft every
day. These products may be nice to have on the shelf but they don't
help much with your day-to-day drafting needs.
FlexDraft takes the opposite approach by
including almost unlimited options and flexibility for the building
blocks of your estate planning practice: Wills, revocable trusts, and
irrevocable trusts. The following is a summary of just some of FlexDraft's
features for different documents.
- Tax planning options
- Marital lead (with credit residuary) or credit
lead (with marital residuary).
- True worth, fairly representative, or minimum
worth funding valuation.
- Optional inclusion of all IRD in marital lead
gifts (to eliminate gain on funding exposure).
- Optional spousal disclaimer to bypass trust, as
either primary planning tool or to enable post death fine tuning of a
formula marital gift (available for outright or in-trust marital gifts).
- Optional inclusion of Second Generation Planning
(a/k/a "GST Planning") in any Will (with or without marital deduction
planning), designed to comply with the "mandatory" division
requirements (without which the actual trust division must generally be
made before 706 filing).
- QTIP or "LEPA" style marital trust (or outright
- Optional principal distributions (per
ascertainable or non-ascertainable standard).
- Optional testamentary power of appointment (to
descendants, and/or surviving spouses of descendants, and/or
- Optional QDOT for any marital trust, with broad
or narrow distributions and optional terminating distributions upon
- For spouse only, for children [and descendants]
only, or for spouse and descendants.
- Primary beneficiary(s) may be Spouse or children
- Optional inclusion of all descendants, or only
descendants of a deceased child.
- Optional special principal distributions to
children [and optionally, to descendants too] for buying a home or
starting a business, with (or without) advancements clause.
- Termination on spouse's death, with "Pot" trust
option (continue as single "pot" in bypass trust) until youngest child
has reached a specified age.
- Optional testamentary power of appointment in
spouse automatically coordinates with termination option selected.
for children and descendants
FlexDraft allows you to mix or match any
one or more of the following:
- "Contingent Trusts" for all
beneficiaries not otherwise covered, with 1 or more vesting ages and
optional power of appointment (appropriate for simple Wills).
- "Descendants' Trusts" for all
descendants not otherwise covered, lifetime or staged vesting, optional
inclusion of beneficiary's spouse and/or descendants, optional special
principal distributions (same as in bypass trust, see above), optional
testamentary power of appointment (special, general, or "GST Split").
- "Grandchildren's Trusts" for
grandchildren only, with the same options as in Descendants' Trusts
(this enables different treatment for grandchildren).
- "Children's Trusts" for
children only, with the same options as in Descendants' Trusts (this
enables different treatment for children, also useful for clients whose
children are very young and who are not yet ready to contemplate trusts
for their children's descendants).
and Trustee) options
- Sole fiduciaries, co-fiduciaries, or sole
followed by co (executor and trustee may be different).
- Optional authority of descendants to become sole
and/or co-trustee of own trust at specified ages.
- Optionally name one or more "Trustee Appointers"
by name and/or by class, to select successor trustees.
- Optional corporate trustee removal (by spouse, by
Trustee Appointer, or by separately named Trustee Removers).
- Short form or long form.
- Broad or narrow fiduciary exoneration.
- Broad or narrow investment authority.
FlexDraft's revocable trusts do not have the
limitations found in most drafting systems: virtually all
provisions available in Wills are also available in all revocable
- Sole settlor revocable trusts for single or married
persons, and optional joint settlor revocable trusts for married
- Additional lifetime beneficiaries can include
- Available revocable "management" trust with
"pour-back" to probate estate at death (where lifetime management is
desired but an existing testamentary plan is too complex to redraft as
a revocable trust).
FlexDraft offers perhaps the most versatile
irrevocable trusts of any drafting system: virtually all trusts and
trust provisions available in Wills are also available in all revocable
- ILIT (Irrevocable Life Insurance Trust) or Gift
(typically funded primarily with assets other than life insurance).
- Sole settlor irrevocable trusts for single or
persons, and optional joint settlor irrevocable trusts for married
- All irrevocable trusts may create multiple trusts ab
initio ("separate share" style), which may mirror Children's
Trusts or Descendant's trusts in Wills), or
- Single trust "pot" style, which may be either
dynastic or provide for termination (or division and retention in
separate trusts) at: death of grantor (or surviving grantor), x years
after the date of death, or date youngest child reaches a specified age
- Withdrawal rights ("Crummey
powers") may go to spouse and/or children, with either spouse or
children preferred (or with all on same footing), may be Full,
"5&5" or "Hanging," and may include optional advancements
clause for a beneficiary who exercises a withdrawal right.
All the "standard" additional estate planning documents are included:
Client Letters, Client Memos, &
Trust "Exit" Memos:
- Medical Power of Attorney (the statutory form, with
- Living Will (Directive to Physician and Family or
- "HIPAA" Authorization (for disclosure of protected
- Statutory Durable Power of Attorney.
- Pre-Need Declaration of Guardian (for self).
- Designation of Guardian (for
optional provision for adult incapacitated children) (note:
if you prefer, guardians for children may be designated in the Wills
New for 2011 and the release of the Professional Edition, FlexDraft
Professional Edition includes selected client letters and memos:
- Proposed Drafts cover letter.
- Final Documents cover letter ("exit letter").
Designations memo (instructions for updating beneficiary designations
to coordinate with the Will or revocable trust and related
Effects memo (instructions for making a holographic codicil to a Will
or a personal effects memorandum to a revocable trust).
- "Exit memos" for irrevocable trusts providing the
clients and trustees with a detailed, highly customized
"owner's manual" for the proper funding &
administration of irrevocable trusts:
- Automatically conforms to the terms and options
included in the
relevant trust, and offers numerous additional optional provisions as
- Available for both ILITs & Gift Trusts, and
both sole settlor & joint settlor trusts.
- Income, Gift, Estate & GST tax issues are
- Specific steps for initial and future years'
gifting, including summary "time-lines" for easy client reference.
- Other options include--
- either "Partitioned" (separate property) or
"Non-Partitioned" (community property) funding.
- either "Opt-In" or "Opt-Out" of deemed GST
- Employer provided insurance.
Every day, FlexDraft gets a little bit better
(because every day, the attorneys and Davis, Ridout, Jones &
Gerstner, L.L.P., want a more powerful drafting system). Future
versions of FlexDraft will include numerous additional
documents–and so long as your license is current, all FlexDraft
updates are yours for free.