Some people drag their feet when it comes to estate planning because they don’t have enough basic information. With this in mind, we will provide a few tips in this post to give you some foundational knowledge to draw from going forward. Don’t fret about taxation unless you are a multimillionaire. You may assume that estate planning involves complicated steps that must be taken to minimize tax exposure. In reality, the tax situation for the vast majority of people is very favorable. There … [Read more...] about These Tips Can Jumpstart Your Estate Plan
Do You Maintain Control of Assets in a Trust?
There is an inherent challenge from an estate planning perspective with regard to projections for the future. How can you know how much money you will need for the rest of your life? A lot of people do not consider the possibility of using a trust because they assume that you lose control of the assets yourself. Since the future is uncertain, they do not feel comfortable letting go of the resources. This is totally understandable, but there is a step that you can take to give yourself the … [Read more...] about Do You Maintain Control of Assets in a Trust?
Can I Leave an Inheritance With Strings Attached?
In some cases, a person will have reservations about leaving a loved one a direct, lump sum inheritance. Let’s look at some of the ways that you can approach this type of situation. Complete Disinheritance First, it is important to clear up a detail that some people have questions about. There are those that assume that an adult child is entitled to an inheritance by law. Generally speaking, this is true if you do not have a will or trust that states your final wishes in no uncertain … [Read more...] about Can I Leave an Inheritance With Strings Attached?
Overlapping Estate Planning Terms Can Be Confusing
People sometimes make assumptions about estate planning that are based on misunderstandings. There are many reasons for this, and terminology is one of them. Some of the terms that are often used sound similar, but in actuality, they are not synonymous. We will look at some of them in this post. Living Trust and Living Will Everyone knows that a simple will is a document that is used to express your choices with regard to the way your estate will be distributed after your passing. You make … [Read more...] about Overlapping Estate Planning Terms Can Be Confusing
What Does a Living Trust Trustee Do?
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?
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 elders … [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?