When someone creates a trust, that person must choose someone else to manage the trust property when the trust creator becomes unwilling or unable to manage the trust themselves. This person is known as the trustee or successor trustee. Though there are professional trust management options, many people select a nonprofessional trustee, such as a trusted friend or family member. If you've been placed in the position where someone is asking you to serve as a trustee, you will want to give the … [Read more...] about 3 Potential Trustee Pitfalls
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Joint Tenancy: Watch Out for the Perils – Part 2 of 2
It’s important to carefully consider each estate planning decision that you make, including the use of joint tenancy. While in limited circumstances it can be beneficial to own property in joint tenancy with another individual, there are also some significant disadvantages to this form of ownership. It’s important to carefully consider both the advantages and disadvantages before including joint tenancy in your planning. The benefit is generally probate avoidance . More disadvantages are … [Read more...] about Joint Tenancy: Watch Out for the Perils – Part 2 of 2
Joint Tenancy: Watch Out for the Perils – Part 1 of 2
Some people choose to own properly jointly with the use of joint tenancy. This can be a form of ownership that has certain benefits. Unfortunately, there are also issues that may arise when people choose to include this form of ownership in their estate plan. It’s important to consider both the advantages and the disadvantages before creating an estate plan. The benefit is generally probate avoidance. More disadvantages are described below. You lose control of your assets. If you choose to … [Read more...] about Joint Tenancy: Watch Out for the Perils – Part 1 of 2
Getting Started in Estate Planning – The First Meeting with Your Attorney
If you have made the decision to stop delaying and create an estate plan, congratulations. You've taken a step that most people will never take and one which will greatly help you and your family. Now that you have made the choice, you can help your estate planning attorney a great deal by taking some time to get prepared for your first meeting. There are specific documents you can bring to your first meeting with your lawyer, as well as questions you can start thinking about now so your … [Read more...] about Getting Started in Estate Planning – The First Meeting with Your Attorney
Protecting Your Kids’ Inheritance From Their Creditors
If one or more of your children have accumulated a lot of debt, you might hesitate to give property to those kids in your estate plan. The property might well end up in the hand’s of a child’s creditors, so many people think it better to give the property to another family member. However, you can leave assets to an indebted child without fear that creditors will get it all. A spendthrift trust is specifically designed for this type of situation. You can fund the trust with the money and … [Read more...] about Protecting Your Kids’ Inheritance From Their Creditors
The Correct Way to Choose a Trustee
If part of your estate plan includes the creation of a trust, you want to ensure that you choose the right trustee. While your trust will specify the kinds of responsibilities and limitations your trustee will have, trustees typically come from one of two sources: either family members or professional organizations. Let's take a look at both of these options so you can determine which choice best suits your trust. Family Members Family members are a popular choice for trustee primarily … [Read more...] about The Correct Way to Choose a Trustee
Second Marriages, Estate Planning, and Prenuptial Agreements
While you may know that your estate plan should contain, at a minimum, a will and advance medical directives, you may also need to consider a prenuptial agreement as well. Prenuptial agreements, also known as premarital agreements or “prenups,” are contracts that prospective spouses enter into before they get married. These agreements can be a very important part of your estate plan, especially if you already have children from a previous relationship or are entering into a second … [Read more...] about Second Marriages, Estate Planning, and Prenuptial Agreements
Writing Your Letter of Instruction – 3 Tips
Sometimes we can get so caught up in the larger questions surrounding estate planning that we can miss many of the important details that will provide practical assistance to our families after we die. One of the best ways to provide certain types of information is not through a will, trust, or power of attorney, but rather through a letter of instruction. These letters allow you to provide your family and estate executor with relevant, pertinent, and useful information immediately after your … [Read more...] about Writing Your Letter of Instruction – 3 Tips
Some Wealthy Parents Choosing to Skip Giving Inheritances
A survey has showm that more and more parents are choosing to either spend their wealth on themselves or give it to charity instead of providing their children with an inheritance. A large trust company recently conducted a survey in which it interviewed people with a net worth of at least $3 million or more, not including the value of their homes. The survey showed that 32% of parents who qualified as high or ultra-high net worth individuals said it isn't important to leave an inheritance to … [Read more...] about Some Wealthy Parents Choosing to Skip Giving Inheritances
Minimizing the “Death Tax”
Effective estate planning can help you to minimize or completely avoid the federal estate tax, sometimes referred to as the "death tax". California presently does not have a state estate tax. Some professionals call the estate tax a “voluntary” tax because you only volunteer to pay it if you don’t sufficiently plan. You can avoid estate tax by: Creating a life insurance trust (ILIT) to own life insurance policies on your life. If you don’t own it, it’s not taxed at your death. … [Read more...] about Minimizing the “Death Tax”
