Many people harbor misconceptions about trusts. One of them is the idea that they are only useful for very wealthy people that have complex estates. This is a half-truth, because there are irrevocable trusts that high net worth individuals use to address estate tax exposure. However, irrevocable trusts are also utilized by people that are not extremely wealthy to satisfy relatively common objectives. Another myth is the notion that you lose control of assets that you can convey into any … [Read more...] about What Does a Living Trust Trustee Do?
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How Do You Keep Your Estate Planning Decisions Confidential?
We recently reported about the closing of the intestate estate of the musical artist Prince. He passed away in 2016, and the estate was stalled in probate for six years in large part because of the fact that there was a dispute about the degree of estate tax responsibility. You may have read about the estate planning decisions of other celebrities over the years. Why does the press have access to this information? If it is disclosed to them, can anyone find out the details about any … [Read more...] about How Do You Keep Your Estate Planning Decisions Confidential?
Estate Planning: Do You Need More Than a Will?
A lot of people think estate planning equals the creation of a will, and that’s the long and short of it. Why would you need anything else when a simple will can be used to express the way that you want the slices of your pie to be distributed after you are gone? This logic may make sense to someone that is not in the estate planning field, but in reality, there is a lot more to think about. In fact, you may be surprised to hear that a will is not the best asset transfer vehicle to use in … [Read more...] about Estate Planning: Do You Need More Than a Will?
Prepare for the Eventualities of Aging
Estate planning is not strictly confined to inheritance distribution decisions. A comprehensive estate plan will address the eventualities that you may face as you get older, and there are some unpleasant realities that should be confronted head on. Aging, Alzheimer’s, and Cognitive Impairment Once you are a senior citizen, it is likely that you will experience life as an octogenarian. When you are in your 80s, your ability to handle your affairs may start to diminish. Over 30 percent of … [Read more...] about Prepare for the Eventualities of Aging
What Happens If a Will Beneficiary Dies?
When you are planning your estate, you should thoroughly think everything through, because events do not always fall into place as expected. We will look at one of these unexpected circumstances in this post, and we will provide a solution. Deceased Beneficiary When you are drawing up a will, you can include a survivorship clause. This would state that the beneficiaries receive inheritances if they live for a certain period of time after your passing. Why would someone want to include this … [Read more...] about What Happens If a Will Beneficiary Dies?
Is a Living Will Similar to a Living Trust?
There are some overlapping terms used in the field of estate planning, and this can lead to misconceptions. With this in mind, we are going to look at the difference between a living will and a living trust in this post. Wills and Trusts for Asset Transfers Most people are aware of the fact that a will can be used to state your final wishes with regard to asset transfers. In a general sense, they know that trusts serve the same purpose, but there are differences that a layperson would not … [Read more...] about Is a Living Will Similar to a Living Trust?
Will My Estate Go Through Probate?
The process of probate can be a factor when an estate is being administered. It serves a purpose, but it is time consuming, and the beneficiaries do not receive inheritances while the estate is being probated by the court. This is one of the drawbacks, and the cost factor is another one. Probate expenses include the executor’s payment, possible accounting and legal fees, court costs, litigation and appraisal charges, and incidentals that drive down the value of the estate. Since probate is … [Read more...] about Will My Estate Go Through Probate?
When Is a Trust Better Than a Will?
Far too many people assume that estate planning can be reduced to the creation of a simple will. Indeed, a will can facilitate asset transfers after you pass away, but in many cases, a trust of some kind will be a better choice. Estate Administration If you use a will to serve as an asset transfer vehicle, you name an executor to act as the administrator after you pass away. This is a role that comes with some serious responsibilities, so you should take this into the consideration when you … [Read more...] about When Is a Trust Better Than a Will?
Five Key Facts About Trust Administration
Many people do not consider the possibility of creating a trust because they harbor misconceptions about the administration process. In this post, we will share five key facts that will help you understand the value and relative simplicity of living trusts. You act as the trustee. One of the most important things to understand about the living trust is the fact that you act as the trustee while you are living. You have complete control of the assets every step of the way, and you retain the … [Read more...] about Five Key Facts About Trust Administration
Why Do Some People Avoid Probate?
When you are planning your estate, you should understand the estate administration process that will commence after your passing. This will sometimes involve probate, and we will provide some important facts about this process in this post. Court Supervision Most people are aware of the fact that an executor is the person that will eventually distribute inheritances when a will is used as an asset transfer vehicle. The executor is not allowed to administer the estate without any type of … [Read more...] about Why Do Some People Avoid Probate?
