Death is a touchy subject for almost everyone. In order to think about writing your will, you have to think about death. This is one reason why so many people put off writing a will; there tends to be an emotional block around the subject of death. Of course there is more to it than just fear of death—there are fears about the future of your family, too. If you find that you cannot think of death because you are afraid of what your family will do without your income, or you are having … [Read more...] about What’s Keeping You from Writing Your Will?
Wills and Trusts
Who Needs a Pour Over Will?
Many people might not know the term "pour over will." But if you want to create a revocable living trust, you definitely need one. A pour over will works in tandem with a revocable trust. (A revocable trust is created while you are alive and can be changed or amended or even terminated during your lifetime. With some exceptions, it becomes irrevocable on your death.) The main benefit of this trust is that it allows your estate to avoid probate and the associated high court costs and attorney … [Read more...] about Who Needs a Pour Over Will?
What a Last Will and Testament Does Not Cover
If you have a Last Will and Testament, you can use it to state your final wishes about your property and heirs, and name your estate executor. If you are the parent of a minor child, your Will can also be used to name a guardian. There are, however, many things Wills do not cover. Jointly Owned Property If you own property in joint tenancy with someone else or in tenancy by entirety with your spouse, you cannot use your Will to leave that property to someone else. You can only leave … [Read more...] about What a Last Will and Testament Does Not Cover
Choosing Your Executor: Paid or Unpaid?
An executor is a person or institution tasked with carrying out your wishes and handling your estate after you pass away. The executor is legally obligated to meet your wishes and act in the best interest of your estate after you die. Normally, an executor is chosen and named when preparing a Will or estate plan. Should you die without a Will, the court will appoint someone – known as a personal representative - to perform the duties normally assigned to an executor. Since the executor’s … [Read more...] about Choosing Your Executor: Paid or Unpaid?
What's the Difference Between a Will and a Living Will?
They sound like they might do similar things, don't they? But although both of these legal documents perform very important roles in your estate plan, a Will and a Living Will are actually very different. A Will is a document used to tell the courts how you would like your estate to be dissolved. This includes distributing your assets, paying off your debts and naming a guardian for your minor children if needed. A Living Will on the other hand, is a document that tells your healthcare … [Read more...] about What's the Difference Between a Will and a Living Will?
How To Use An Incentive Trust
Do you worry that a family member may squander money you leave him or her? An Incentive Trust is a legal document you can create to disperse funds over time or as life goals are met. An incentive plan is a great way to encourage a child or grandchild to succeed in life and to teach them financial responsibility. Encourage Life Goals An Incentive Trust may encourage your loved ones to pursue their life goals and reach success without depending fully on an inheritance. Leaving an inheritance … [Read more...] about How To Use An Incentive Trust
How Does A Revocable Living Trust Affect Your Income Taxes?
When you fund property into a Revocable Living Trust, you transfer ownership of property from your name into the name of the trustee. Typically, you serve as the trustee while you’re alive, so that you control the property and retain all the benefits of property ownership. And because the trust is revocable, you can cancel the trust and transfer the property back into your individual name at any time. Under IRS rules, the only way you can avoid being taxed on the property in a trust is to … [Read more...] about How Does A Revocable Living Trust Affect Your Income Taxes?
Does Your Estate Have Enough Liquidity?
Estate liquidity is the amount of cash and cash equivalents available in your estate to pay creditors and other bills that may arise after you pass away. Many estates are heavy on illiquid assets like real estate, and too light on liquid assets. This means that when the cash runs out, illiquid assets have to be sold in order to pay the bills and settle the estate. Forced sales always put the estate at a disadvantage. For this reason, it’s important to plan for sufficient liquidity. One way to … [Read more...] about Does Your Estate Have Enough Liquidity?
What Happens to Assets Not Included in a Trust?
A trust is a legal entity that survives the person who created it. The basic purpose of creating a trust is to ensure easy distribution of assets to the beneficiaries without going through the often lengthy procedure known as probate. The assets covered or transferred in the name of a trust are easily passed on to the named beneficiaries after the death of the trust maker, but what about assets not held within the trust? How are those handled? The simple answer is any assets not held … [Read more...] about What Happens to Assets Not Included in a Trust?
Common Estate Planning Mistakes
Estate planning might not sound like the most exciting way to spend your time, but it is definitely one of the most beneficial. Planning your estate ensures that your assets are distributed correctly after you’re gone. Without the explicit instructions a plan would contain, a state-appointed representative will be given the responsibility of distributing your assets as they deem fit. But before you begin trying to plan your own estate, there are some things you should know. One of the most … [Read more...] about Common Estate Planning Mistakes
