Most people want to do as much as possible for their loved ones throughout their lives and at the time of their passing. So, you may think that accumulating resources for the well-being of your loved ones is a good deed that should go unpunished. While it is enriching to leave behind a robust legacy, when your assets reach a certain level you do have to concern yourself with the federal estate tax. This death levy carries a 35% rate at the present time, and if that was not enough it is going up … [Read more...] about Use Of Life Insurance Trust Can Be Wise
Estate Planning: Clarifying The Basics
There are some rudimentary estate planning documents that can be a bit confusing if you haven't seen them before and we would like to take a look at them here to clarify them. The last will is a document that everyone understands as used to transfer assets. However, there are other wills used in the field of estate planning and one of these is the living will. Living wills are highly recommended to anyone who wants to have a comprehensive plan for aging in place, but they have nothing to do … [Read more...] about Estate Planning: Clarifying The Basics
Protecting Spendthrift Heirs
Estate planning is best undertaken with the assistance of an experienced professional because there are many different ways to transfer assets to your loved ones. You are not restricted to a last will, and the optimal combination of estate planning documents will vary on a case-by-case basis. Aside from the goal of preventing asset erosion, another thing to consider is the personal proclivities of the people who will be receiving inheritances. You may have mature and established family members … [Read more...] about Protecting Spendthrift Heirs
Spendthrift Trusts Can Provide A Solution
When you are making plans for the future distribution of your assets to your loved ones you should consider how well each of the people on your inheritance list can handle financial resources. Your estate represents the final act of giving that you will be capable of and of course some family members may be in need of financial assistance when you are no longer around. For this reason you may not want to give a lump sum inheritance to someone who is a poor money manager because of the … [Read more...] about Spendthrift Trusts Can Provide A Solution
Special Needs Trusts Need Special Planning
Living Trusts are becoming more common in Estate Planning, and these can include Special Needs Trusts to help take care of a disabled loved one. What may people don’t take into account, however, is that a Special Needs Trust must be drafted carefully to avoid interfering with the disabled person’s eligibility for government benefits such as Medicaid or Social Security benefits. When it comes to Medicaid, the government determines eligibility based on income and asset limits. Income is pretty … [Read more...] about Special Needs Trusts Need Special Planning
Living Trust Options Allow Flexibility, Protection and Probate Avoidance
Many tools are available to craft an Estate Plan that meets your needs. One of the most flexible tools in Estate Planning is the Living Trust. A Living Trust is a legal tool that ensures that your estate will take care of an heir or heirs in a very specific manner, according to your wishes. Examples include: A trust fund for a minor, with disbursements over time – a schedule that you set up A fund for a special needs or disabled person, especially one who may need special care for a long … [Read more...] about Living Trust Options Allow Flexibility, Protection and Probate Avoidance
Appointing a Successor Trustee for Your Trust: Considerations
If you’ve decide to include a trust in your estate planning, you will need to carefully consider who you will choose as your successor trustee. While you’re able to serve as trustee of your trust, you need to pick a capable and reliable successor trustee to serve in the event of your incapacity or death. Take a look at the following information, for considerations that you should make when making this decision. When choosing a successor trustee, consider the following: Will he or she be able … [Read more...] about Appointing a Successor Trustee for Your Trust: Considerations
How Revocable Living Trusts Provide Incapacity Planning
One of the most important benefits of revocable living trusts for you during your lifetime is incapacity planning. Incapacity (or disability) can occur at any time; and, it often arises unexpectedly. A stroke, car accident, or head injury can leave you unable to manage your day to day business affairs and financials. You Determine the Definition of Your Disability Your revocable living trust will define your disability so that it’s clear when authority passes from you to your named … [Read more...] about How Revocable Living Trusts Provide Incapacity Planning
Three Ways To Create a Trust
A trust is a powerful estate planning tool, and there is more than one way to create a trust, including… Totten Trusts When you wish to create a simplistic trust with a relatively small amount of cash, some people choose to create a Totten Trust, which is also referred to as a Payable on Death, or POD, account. A Totten Trust is a relatively simple arrangement since there is no detailed trust agreement, but rather a simple form provided by many financial institutions that allows you to … [Read more...] about Three Ways To Create a Trust
Estate Litigation: Who can Contest a Will?
We certainly hope that our loved ones will accept our final wishes, but unfortunately, disagreements and old hurts can make an appearance during such an emotional time. When someone is left out of a will, or feels he or she did not receive a fair share of an estate, that person may contest the will based on one or more of the following: The testator, the person who had the will created, lacked the capacity to make a will. Another person had undue influence over the testator; There was fraud … [Read more...] about Estate Litigation: Who can Contest a Will?
