Getting the news that you have inherited money or property from a family member is usually a good thing. For some people, it may be more of a concern. If you receive income-based government benefits, you may be concerned that your benefits will be in jeopardy if you receive a significant inheritance. For instance, if you receive Medi-Cal or Supplemental Security Income (SSI), you assets must not exceed a certain amount in order for you to remain eligible. If that's the case, you need to … [Read more...] about Protecting Your Inheritance with Inheritance Planning
Trusts
Why Irrevocable Trusts Protect Assets
Especially if you own a business or commercial property, asset protection can be a big concern for you. The possibility of legal claims and constant existence of creditors make it even more important to have an asset protection plan so that you don't run the risk of losing everything through some unexpected turn of events. There are different ways to legally protect your assets, including irrevocable trusts. Not every type of trust can accomplish proper asset protection. Here is why … [Read more...] about Why Irrevocable Trusts Protect Assets
4 Myths About Wills and Trusts
Estate planning means preparing for possible incapacity and inevitable death. An estate plan can include many different types of documents, including wills and trusts. The variety of tools available will allow for a customized and comprehensive estate plan. There are many benefits to estate planning and there are some myths as well. Here we will dispel 4 common myths about wills and trusts. MYTH #1: Trusts are only for the rich and elderly One common misconception is that, if you are young … [Read more...] about 4 Myths About Wills and Trusts
Trusts Can Satisfy Many Different Objectives
The importance of trusts in estate planning is seen in their ability to minimize estate taxes and hopefully avoid probate. A trust is basically a fiduciary agreement, one based on trust and confidence, between the person making the trust (grantor) and the trustee. This agreement gives the trustee the authority to manage the assets of the trust and distribute those assets to the beneficiaries as specified in the trust agreement. There are several different types of trusts with their own … [Read more...] about Trusts Can Satisfy Many Different Objectives
Selecting a Trustee: Things to Consider
Are you having a hard time deciding on a Trustee for your estate plan? It is not uncommon for decisions like this to be difficult. Let’s look at the attributes that should be taken into consideration when choosing a Trustee. You may want to factor in age, maturity, responsibility level, physical location, your personal relationship with them, and ability to handle money. What will your Trustee do? Your Trustee, once appointed, will have the responsibility of managing and distributing … [Read more...] about Selecting a Trustee: Things to Consider
Isn’t a Trust Just a Glorified Will?
People sometimes assume that a trust is a somewhat glorified legal device that accomplishes the same thing that a will would accomplish. In fact, there are different types of trusts. Trusts can satisfy objectives that a will would not satisfy. Let's look at some of these scenarios. Estate Tax Exposure The federal estate tax is a legacy threat to high net worth families. This tax carries a 40 percent top rate, so we are talking about a very significant level of taxation. The good news is … [Read more...] about Isn’t a Trust Just a Glorified Will?
A Medi-Cal Trust Can Preserve Inheritances
When you are contemplating your legacy, you may have a certain vision with regard to the inheritances that you would like to leave behind to your loved ones. Making this vision a reality takes careful planning as you build a nest egg for your own retirement with your legacy goals in the back of your mind. Your active retirement years can be full of fun, travel, and leisure activities if you act within a well defined plan over the years. However, when you are considering the expenses that you … [Read more...] about A Medi-Cal Trust Can Preserve Inheritances
Estate Tax Strategy for Appreciable Assets
There are things that you can do to potentially transfer assets at a tax discount if your estate is going to be exposed to the federal estate tax. This tax is applicable on transfers that exceed the amount of the federal estate tax exclusion. For the rest of 2015, the exclusion is $5.43 million, but it is going up to $5.45 million in 2016 after an inflation adjustment is applied. If you are married, you can use the unlimited marital deduction to transfer unlimited assets to your spouse … [Read more...] about Estate Tax Strategy for Appreciable Assets
Use the Right Trust for the Right Job
Estate planning is often misunderstood. People who do not obtain professional guidance can assume that it is an either/or proposition. They are under the impression that a last will is the right choice for people who are not multimillionaires. The idea is that a trust is the other option, but it would only be useful for very wealthy people. In fact, this is a very shortsighted point of view. There are numerous different types of trusts. It is true that there are trusts that are used by high … [Read more...] about Use the Right Trust for the Right Job
What Questions Should I Ask an Estate Planning Attorney?
When you become an adult in your own right, you have a certain set of basic responsibilities. There are probably family members who depend on you, and you if you are like most people, you take your responsibilities to heart. You should definitely carry this perspective over to the realm of estate planning. Unfortunately, many otherwise responsible people are unprepared for an event that is definitely going to happen to all of us. When you devise your estate plan, you are not planning for your … [Read more...] about What Questions Should I Ask an Estate Planning Attorney?
