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?
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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?
Estate Planning Basics: Calculating Your Net Worth
When planning your estate, you want to be sure that you give your attorney your complete financial picture. One way to do this is to calculate your net worth. Doing this on an annual basis will also give you an idea of the financial progress you have made over the year. All that’s needed to do this is information on the assets you own and the liabilities you owe. Step I: List all your assets Start with your big assets, such as your home, your cars, boats, rental properties and raw land. … [Read more...] about Estate Planning Basics: Calculating Your Net Worth
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
What is a 403(b)?
A 403(b) plan is an employer-sponsored retirement savings account that’s for employees of public schools, 501(c)(3) charities, and other tax-exempt organizations. It’s very similar to a 401(k), which is the better-known type of retirement account available to employees of for-profit companies. Sometimes 403(b) plans are called tax sheltered annuities (TSA’s) or tax deferred annuities (TDA’s). As an employee, a 403(b) plan offers you several advantages for saving for retirement. When you … [Read more...] about What is a 403(b)?
A Different Kind of Retirement Planning
Chances are you’ve spent a lot of your working life dreaming about retirement. You’ve been diligent in putting a financial plan in place so that you’d be able to retire in comfort. But, have you thought about what your day-to-day life will look like once you retire? Retirement is a huge lifestyle change – your time is suddenly your own, instead of being dictated by the demands of your career. As much as you’ve been looking forward to it, the sudden end to your old routine can be really … [Read more...] about A Different Kind of Retirement Planning
Wondering When to Start Social Security? Consider This
The vast majority of American workers are eligible for social security. For most people, 10 years of work means that you and your spouse will be able to count on payments from social security as part of your retirement income. But when should you start collecting benefits? The Social Security Administration determines your “full retirement age” based on the year you were born. For example, if you were born between 1946 and 1954, then your full retirement age is 66. Everyone is eligible to … [Read more...] about Wondering When to Start Social Security? Consider This
Borrowing From Your 401(k)
Although many employers have programs that let employees to take out loans on their 401(k) plans, there are often a number of different rules governing the loan so it is important to be aware of what those rules are. The first thing to remember is that it is, in fact, a loan and you’ll be required to pay back whatever you withdraw. Often, that payment will be deducted directly from your paycheck. There are also limits on how much can borrow, which is usually about half of what you have … [Read more...] about Borrowing From Your 401(k)
What Happens if You Don't Have a Will?
We all know how important it is to create a Will, but what happens if we don’t? Where will your assets go? How will your estate be divided? All fair questions – and here’s the answer: if you die without a Will, your estate will be distributed according to what is known as intestacy or “succession” laws. And if that happens, it probably won’t be done in the way you might have liked. Intestacy law basically is a law that determines who has a right to inherit in the case where there is no … [Read more...] about What Happens if You Don't Have a Will?
