People often question the value of estate planning. They do not understand why they should execute a last will or some other vehicle of asset transfer. If you don't have a will or some other estate planning document directing the distribution of your assets, the condition of intestacy will result. Under these circumstances, assets that were in your personal possession would become probate assets. The probate court would supervise the estate administration process, and after … [Read more...] about Why Do I Need a Will?
Wills and Trusts
What Is a Third Party Special Needs Trust?
There are various different ways that you can set aside assets for the benefit of a loved one. The right choice will depend upon the circumstances, and with this in mind, we will look at third party special needs trusts in this post. Improved Quality of Life A third party special needs trust is a trust that is funded by someone other than the beneficiary. This type of trust can be used to provide for a loved one who has a disability. Many people who have special needs are … [Read more...] about What Is a Third Party Special Needs Trust?
Estate Planning: Is My Last Will Enough?
Some people oversimplify the process of estate planning. They reduce the endeavor to the creation of a last will, and they leave it at that. In reality, there are a lot of things to take into consideration. There are many different ways to facilitate future asset transfers. A last will may not be the best choice for you. If you have a last will, you lose a good bit of control. The assets would be divided like slices of a pie, and the inheritors would assume direct … [Read more...] about Estate Planning: Is My Last Will Enough?
When Will My Heirs Receive Their Inheritances?
There are various different ways to get assets into the hands of your loved ones after you pass away. The most commonly utilized estate planning document is the last will. You may assume that the heirs to your estate receive their inheritances right after you die when you use a last will to state your final wishes. Unfortunately, things don't happen very quickly when you use a last will to facilitate the distribution of your personally held assets. Before inheritances can be distributed, the … [Read more...] about When Will My Heirs Receive Their Inheritances?
What Is the Most Important Estate Planning Document?
A comprehensive estate plan will include a number of different legally binding documents. While there are always those who are looking to prioritize, this is simply not necessary. You have estate planning objectives, and it takes certain documents to bring your wishes to fruition. There is no need to look for a pecking order. Let's look at some important estate planning documents that could be part of a well constructed estate plan. Transferring Assets: The Last … [Read more...] about What Is the Most Important Estate Planning Document?
Revocable Living Trusts: What Is a Successor Trustee?
If you are not particularly wealthy, you may assume that you should use a last will to facilitate the transfer of your monetary assets after you die. You can go this route if you want to, but the postmortem process is something to take into consideration. The executor that is named in the will would have to admit the will to probate. This is a legal process, and it comes with a number of pitfalls. Probate can be costly, it is time-consuming, and probate records are available … [Read more...] about Revocable Living Trusts: What Is a Successor Trustee?
What Is a Grantor Retained Annuity Trust?
Estate planning takes on an added layer of complexity when you are faced with federal estate tax exposure. To determine your position relative to the estate tax, you must compare the value of your estate to the federal estate tax credit or exclusion. For the rest of 2014, the federal estate tax exclusion stands at $5.34 million. You can transfer this much tax-free, but transfers that exceed this amount are potentially subject to the death tax and its 40 percent maximum … [Read more...] about What Is a Grantor Retained Annuity Trust?
When Would I Create a Special Needs Trust?
There are numerous different ways to provide for your loved ones when you are planning your estate. It is important to gain an understanding of all of your options so that you are proceeding the optimal fashion. It is possible to make mistakes that result in negative consequences, even though you have very positive intentions. With this in mind, we would like to look at the value of special needs trusts. Medicaid and Supplemental Security Income You may have a loved one … [Read more...] about When Would I Create a Special Needs Trust?
Do I Lose Control of Assets in a Revocable Living Trust?
It is important to gain an understanding of the vehicles of asset transfer that you can utilize when you are planning your estate. There are those who have misconceptions, and you can look past viable solutions if you do not know all the facts. With this in mind, we would like to look at revocable living trusts in this post. Loss of Control? Some people are under the impression that you lose personal control of assets when you place them into a trust. That's the whole … [Read more...] about Do I Lose Control of Assets in a Revocable Living Trust?
What Are the Disadvantages of a Medicaid Trust?
Medicaid is thought of as a program that is only relevant to people who have virtually no financial resources. This is true to a large extent, but there is more to it when you understand the facts. Most seniors will qualify for Medicare when they reach the age of 65. You would logically assume that you won't need Medicaid if have Medicare coverage, and you wouldn't qualify anyway. In fact, many elders who were never financially needy ultimately do seek Medicaid coverage, … [Read more...] about What Are the Disadvantages of a Medicaid Trust?
