If you suffer an illness or injury that leaves you unable to care for yourself, you’ll need someone to handle your affairs on your behalf. This is when a guardian and/or a conservator would be appointed for you. What’s the difference between the two? A guardian is a person who’s appointed by the court to take care of your personal interests and day-to-day care. Some of the things a guardian might decide for you are where you’ll live and what kind of medical care you’ll receive. A guardian is … [Read more...] about What's the Difference Between a Guardian and a Conservator?
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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?
Estate Planning for New Parents
If you’ve just had a baby, you know how busy and overwhelming life can be. Amid all the excitement and the adjustments you’re making, it’s important to take some time to think about your estate plan, and how you’d like to provide for your child in the event that you pass away. Especially at this time in your life, planning for this unfortunate circumstance is the last thing you’re likely to want to think about; however, this is an essential part of protecting and providing for your … [Read more...] about Estate Planning for New Parents
How Do Contract Rights Fit Into Your Estate Plan?
Most people are familiar with joint versus individual ownership of property, but did you know that there’s a third way to own property? It’s through contract rights, and this type of ownership can have a large impact on your estate plan. In general, property in which someone holds contract rights is not subject to probate. Examples of this type of property include payable on death accounts, life insurance policies, retirement accounts, and revocable living trusts. Payable on death accounts … [Read more...] about How Do Contract Rights Fit Into Your Estate Plan?
The Importance of Advanced Health Care Directives
Many people wonder if they should include instructions in their Will to let loved ones know what kind of medical care they’d like if they’re in the final stages of a terminal illness. But your Will is not the place for this type of information. In fact, in many cases, your family doesn’t even find your Will until sometime after your death. What’s more, your Will, by definition, does not take effect until you die – so it’s powerless to make sure that your health care wishes are … [Read more...] about The Importance of Advanced Health Care Directives
Is a Life Insurance Policy Considered Part of My Estate?
With so much buzz about the estate tax returning in 2011, many people are taking a closer look at just what constitutes the value of their estate. Some items are obvious – your home for example, your cars and your personal belongings, but what about life insurance? Is that considered part of your estate as well? The answer is yes and no. If the life insurance policy is “owned” by you, then yes, the proceeds of the policy will be included in calculating the value of your estate. If … [Read more...] about Is a Life Insurance Policy Considered Part of My Estate?
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?
Can I Object to Conservatorship?
If family members feel that you are no longer able to care for yourself, they may petition the court to appoint a guardian – typically called a conservator – to look out for your best interests. If the court grants this petition, the conservator would then be responsible for making personal and financial decisions on your behalf. You can however, object to the appointment and there are some rights you retain even after a conservator has been appointed: being present during the hearing if … [Read more...] about Can I Object to Conservatorship?
Who Should Know About Your Estate Plan?
After you have prepared an estate plan, the next question is who should you share it with? Do you tell your family about your plan or do you keep this knowledge secret between you and your Estate Planning attorney? The answer to these questions may not be so simple. Let’s look at your choices: You do not tell your family about the estate plan. Your decision to keep the plan undisclosed may be based on your intent to keep your true net worth a secret from your family, and this is not … [Read more...] about Who Should Know About Your Estate Plan?
