Living trusts can be very useful for a wide range of people. When you create this type of trust, you are called the grantor of the trust. There is a trustee who administers the trust, and a beneficiary who can receive monetary distributions from the trust. While you are alive and well, you can act as the trustee and the beneficiary. You control the actions of the trust, and you can take monetary distributions if you choose to do so. Most trusts that are referred to as Living Trusts are … [Read more...] about Does a Living Trust Protect My Assets?
Asset Protection Planning
How to Protect IRAs Left to Your Beneficiairies
A recent U.S. Supreme Court decision, Clark v. Rameker, will have big implications for clients. In the Clark case, the Supreme Court held that, while a person’s own IRA can be protected in the case of bankruptcy, the court has determined that an inherited IRA cannot, at least when it is inherited by someone other than a spouse. While that is big news for those who have already inherited an IRA, it is a call to action for those planning to leave one behind. Being aware of the consequences of … [Read more...] about How to Protect IRAs Left to Your Beneficiairies
What is Asset Protection, and Why Might You Need it?
When the estate planning lawyers talk about asset protection, they are talking about tools and strategies that can help you keep as much of your money as possible in the face of those who are seeking to take it. Essentially, in one context, this means protecting your assets from anyone who wants to file a lawsuit against you. Asset protection and estate planning go hand-in-hand because they both focus on what you own, and what you want to happen to it in the future. Though there are many estate … [Read more...] about What is Asset Protection, and Why Might You Need it?
Common Questions About Asset Protection in Sacramento CA
When people hear the term “asset protection,” they usually either know very little about it, or have some idea that it’s what rich people do. While it’s true that wealthy people are more likely to have an asset protection plan, people of moderate means can benefit from them as well. Basically, asset protection is what you do to keep your assets safe from those who would try to take them. This primarily involves protecting your assets from judgment creditors. A judgment creditor is someone who … [Read more...] about Common Questions About Asset Protection in Sacramento CA
Protections For Elderly Parents Who Need to Move to a Nursing Home
As an adult child with elderly parents, the day may come when your parent has to move to a nursing home facility or similar long-term care environment. When that time comes you will want to help your parents protect as much of their assets as possible. There are several ways you can do this. Handing Off Responsibilities As hard as it may be for elderly parents to accept that their age has left them less able to manage their own finances, your parents will want to consider creating a revocable … [Read more...] about Protections For Elderly Parents Who Need to Move to a Nursing Home
GRAT-itude for Advanced Tax-Saving Planning Option
For many families, an estate plan based upon a revocable living trust may be all that is needed to protect their assets from death taxes. However, for folks with larger estates, it may make sense to look for ways to transfer assets in a tax-free manner. Though there is a gift tax in place there are ways to facilitate tax-free giving if you take the appropriate actions. One such strategy involves zeroing out a grantor retained annuity trust, often abbreviated as a GRAT. How does it work? After … [Read more...] about GRAT-itude for Advanced Tax-Saving Planning Option
