Although a Last Will and Testament is likely the cornerstone of your estate plan, you will also probably incorporate additional estate planning tools and strategies into that plan to ensure that all your goals are reached. Many people, for example, include a trust in their estate plan. The best way to ensure that you do not make any mistakes with a trust you create is to work closely with an experienced and qualified estate planning attorney. Let's look at five common mistakes people make when … [Read more...] about 5 Common Trust Mistakes
Trusts have evolved to the point where it is common to find at least one trust in the average estate plan. If you are considering the addition of a trust in your plan, or you are the beneficiary of a trust established by someone else, you may find yourself wondering how a trust terminates. Let's review how a trust can be terminated and whether a beneficiary can terminate a trust. Trust Fundamentals One reason trusts are so popular is that trusts are extremely flexible, meaning a trust can … [Read more...] about Can a Beneficiary Terminate a Trust?
Trusts are often found in the average estate plan. In fact, trusts have evolved to the point where there are a variety of highly specialized trusts that serve specific purposes. One such trust is an irrevocable life insurance trust, or ILIT. Let's look into whether a beneficiary can also serve as the Trustee of your Irrevocable Life Insurance Trust. How Does a Trust Work? A trust is a fiduciary legal arrangement that allows a third party, referred to as a Trustee, to hold assets on behalf … [Read more...] about Can a Beneficiary Also Be a Trustee of an Irrevocable Life Insurance Trust?
After a Last Will and Testament, a trust is one of the most common additions to a well-rounded estate plan. If you decide to add a trust to your estate plan, you will need to decide which type of trust to create. To decide which type of trust you should create you need to have a better understanding of how different types of trusts can help you. For example, let's see why you might need an irrevocable living trust. Testamentary vs. Living Trusts All trusts are broadly divided into two … [Read more...] about Why Would I Want a Trust to Be Irrevocable?
Were you recently informed that someone appointed you to be the Trustee of a trust? If so, and this is the first time you served as Trustee, there are a few things you need to know before stepping into your role as a Trustee. To get you started, let's look at some key things every Trustee needs to know. A Trustee has several important duties and responsibilities. The overall job of a Trustee is to manage and invest trust assets and to oversee the administration of the trust. Generally, the … [Read more...] about Key Things Every Trustee Needs to Know
In recent years, trusts have become a commonplace addition to even the simplest estate plan. Unfortunately, the creator of a trust does not always discuss the appointment of a Trustee with the intended Trustee. If you recently learned that you were appointed as a Trustee and never served as a Trustee, you probably do not know where to begin in your trust administration duties. Let's explore what a Trustee does. Trust Basics A trust is a relationship whereby property is held by one … [Read more...] about What Does a Trustee Do?
For many people, tax avoidance is a primary estate planning goal. If you are among them, and you are married, you may wish to consider incorporating an AB trust into your estate plan. For those who are unfamiliar with the concept, a Sacramento trust attorney at the Northern California Center for Estate Planning & Elder Law explains the basic fundamentals of an AB trust. Why Tax Avoidance Is an Important Estate Planning Goal Historically, an AB trust was used as an estate planning tool … [Read more...] about What Is an AB Trust?
If you are contemplating the addition of a trust to your plan, you will need to decide which type of trust best suites your needs. You may have heard of a Family Wealth Trust and thought it is not the right trust for your plan because you are not wealthy. If so, think again because a Family Wealth Trust is not just for the wealthy. Let's see how you can benefit from a Family Wealth Trust. Why Might You Need a Trust? Initially, a Last Will and Testament may be all you need to ensure that … [Read more...] about How You Can Benefit from a Family Wealth Trust
Sometimes, the most difficult part of creating an estate plan is not deciding who to include as beneficiaries but deciding how to gift assets to those beneficiaries. For example, you may be reluctant to pass down assets directly to a beneficiary because that individual cannot be trusted to manage his/her own money for one reason or another. If you find yourself in that position, a spendthrift trust may be the solution. For those who are unfamiliar with the concept, let's see how a spendthrift … [Read more...] about The Benefits of a Spendthrift Trust
No way! Married people need estate plans. Some folks think that because they own assets jointly with a spouse, they don’t need an estate plan. In fact, joint ownership is called a “poor man’s estate plan.” In reality, it should just be called a “poor estate plan.” Joint tenancy ownership is riddled with perils. Likely, the most serious peril is the unintentional disinheritance of your children. Sadly, it happens too often because of joint ownership. This is what can happen when you … [Read more...] about Married People Don’t Need Estate Plans, Right?