Wills and trusts are legal documents that are widely used in the field of estate planning. There are different types of wills and trusts, and there are intricacies that many people do not understand. In an effort to provide clarity, we will take a look at some of the basics in this blog post. Last Wills First, let's look at wills. There are different types of wills, but the will that most people have heard of is the last will or last will and testament. This document can be used to direct … [Read more...] about Wills and Trusts: A Primer
Living Trusts
How Can I Protect a Spendthrift Heir?
How Can I Protect a Spendthrift Heir? from Paul Kraft If you use a will to state your wishes regarding asset transfers, you would be leaving lump sum inheritances. If you have a spendthrift in the family, this loved one could squander his or her inheritance quickly. … [Read more...] about How Can I Protect a Spendthrift Heir?
What Happens If I Accidentally Leave Assets Out of My Living Trust?
If you have always assumed that you should use a last will as the centerpiece of your estate plan, you may want to take pause. Even if your situation is not extremely complicated, you may find that a living trust is a better choice once you become apprised of all of the facts. When you establish a living trust, you do not surrender control of the assets. While you are alive and well, you can direct the actions of the trust, because you can act as the trustee. You can also be the beneficiary … [Read more...] about What Happens If I Accidentally Leave Assets Out of My Living Trust?
Should I Use a Revocable or Irrevocable Trust?
If you have not researched the subject extensively, you may assume that a trust is a single type of document that serves a universal set of purposes. In fact, this is not the case. There are various different types of trusts that can be used to satisfy different objectives, though some of them can accomplish multiple aims simultaneously. One major difference between trusts is the right of revocation. You can revoke or dissolve some types of trusts, and there are also irrevocable trusts. At … [Read more...] about Should I Use a Revocable or Irrevocable Trust?
Can I Change My Living Trust Beneficiaries?
People sometimes fail to act when it comes to estate planning, because they are not entirely certain about the long-term circumstances that will come about as time goes on. They do not want to get locked into decisions that they made on a given day, and this is understandable. Most people are aware of the fact that they could create a new will if they decide to use a last will as an asset transfer vehicle. For this reason, they are reluctant to consider trust creation, because they are under … [Read more...] about Can I Change My Living Trust Beneficiaries?
Do Assets In A Living Trust Get A Step-Up in Basis
Do Assets In A Living Trust Get A Step-Up in Basis from Paul Kraft Assets that have been conveyed into a living trust would be transferred to the beneficiaries after the passing of the grantor. Learn more about living trust get a step-up in basis in this presentation. … [Read more...] about Do Assets In A Living Trust Get A Step-Up in Basis
Why Would I Use a Trust Instead of a Will?
You may not give estate planning a lot of thought. When you do, the document called a last will may come to mind. When you get ready to take action, you can just draw up a last will, and you will be good to go. In reality, this is an oversimplification. In many instances, a trust would be a better choice. Let's look at some of the reasons why you may want to use a trust instead of a will. Efficient Asset Transfers When a will is used, it must be admitted to probate. The court supervises … [Read more...] about Why Would I Use a Trust Instead of a Will?
Do Assets in a Living Trust Get a Step-Up in Basis?
A revocable living trust is an estate planning tool that provides certain benefits, but things essentially stay the same when you convey assets into this type of trust. The trust creator is called the grantor of the trust, and the trustee is the trust administrator. The grantor will typically act as the trustee throughout his or her life. If you create this type of trust, you still control the assets that you conveyed into the trust. You are retaining incidents of ownership in legal … [Read more...] about Do Assets in a Living Trust Get a Step-Up in Basis?
How Do I Change My Living Trust?
Before we look at the specific question that serves as the title of this entry, we should explain the value of living trusts for those who do not fully understand why you may want to use this type of trust. A living trust is an estate planning tool that provides a great deal of flexibility and control. You can act as the trustee while you are living, so you administer the trust throughout your life. As the creator of the trust, you can also serve as the beneficiary initially. There would … [Read more...] about How Do I Change My Living Trust?
Can a Living Trust Provide Spendthrift Protections?
A living trust is an estate planning device that you should explore when you are devising your estate plan. There are numerous different advantages that these trusts provide, and one of them is the ability to leave behind specific instructions that the trustee must follow after your passing. Spendthrift Protections You may not feel comfortable about leaving direct, lump sum inheritances to people in your family who are not good money managers. If your spendthrift heirs were to burn through … [Read more...] about Can a Living Trust Provide Spendthrift Protections?
