If you’re in a blended family, such as a second marriage with children from a previous relationship, you can do much to keep the peace in your family with your estate plan. One way to keep the peace, using your estate plan, is to specifically consider and plan for your children. This could include not making your children wait until your second spouse dies before they will inherit. Waiting and putting the children second may cause hurt feelings and a breakdown of relationships that you’ve … [Read more...]
Answers To Your Living Trust Questions (3 of 3)
Trusts have been around for hundreds of years; specifically, the living trust gained popularity in the 1970s as a probate avoidance technique. Today, living trusts are often used as a foundational document in estate plans. We've found that many folks have both questions and misconceptions about the living trust; so, in this three part series, we answer your living trust questions. Does everyone need a living trust? Most folks would likely benefit from having a living trust; however, if … [Read more...]
Answers To Your Living Trust Questions (1 of 3)
Trusts have been around for hundreds of years; specifically, the living trust gained popularity in the 1970s as a probate avoidance technique. Today, living trusts are often used as a foundational document in estate plans. We’ve found that many folks have both questions and misconceptions about the living trust; so, in this three part series, we answer your living trust questions. I am confused about the different types of trusts. Is a living trust always called “living trust”? Great … [Read more...]
FAQ: Charitable Planning
You may think that charitable planning has sunk into nonexistence. The extremely large (i.e. $11.18 million in 2018 an) lifetime federal estate exemption has made many question the need for charitable planning. However, charities are pleased to announce that charitable giving remains strong in the United States. What are the common ways to participate in charitable giving? Lifetime gifts Private foundations Donor advised funds Bequests Charitable remainder trusts … [Read more...]
What is a Qualified Personal Residence Trust?
If you’re like most people, you haven’t heard of qualified personal residence trusts. They are abbreviated “QPRT” for short; and, pronounced “Q – Pert.” They are irrevocable (can’t change them) split interest (you benefit and your children benefit) trusts. You benefit by living in your home rent free for a period of years. Your children benefit because federal estate taxes are eliminated and they get the house. QPRTs have a role in California planning where the high value of real estate … [Read more...]
Tips When Inheriting IRAs
We regularly get inquiries from our clients who are recipients of an inheritance. An ever increasing asset that is being inherited is a retirement account such as an IRA. Special considerations must be attended to when inheriting an IRA because of their special characteristics. In this blog, we'll discuss some of these considerations. Don’t automatically request to cash in the IRA. The income tax repercussions could be great and there are better options. If you opt for a lump sum … [Read more...]
Basics of Asset Protection – Part 2 of 4 Parts
Some form of asset protection should be included in every comprehensive estate plan. Regrettably, however, many folks foolishly opt for the cheapest estate plan they can find, whether it be a do-it-yourself plan or some form downloaded off the Internet. Others rely upon non-attorneys such as paralegals or financial advisers. Even some attorneys are guilty of poor planning work. They are usually lawyers who practice in several different areas of law, such as divorces, criminal, personal … [Read more...]
Basics of Asset Protection – Part 1 of 4 Parts
The term asset protection is heard a lot in planning circles. However, it has no definitive definition and its role depends on the context in which it is used. One aspect of asset protection is to protect the owner of those assets. Sometimes it refers to protecting those assets from possible seizure after a finding of liability, e.g., in a lawsuit. Other times it refers to legally minimizing or avoiding (not evading) certain tax liabilities such as the estate and gift taxes. Still other … [Read more...]
Updating or Fixing Your Estate Plan
If you have already put together an estate plan there are many reasons why it may be time for you to reevaluate that plan and make some changes. You may be wondering why you would need to update your estate plan, which is a valid question. The answer is that the composition of family’s change, laws change, and one’s financial status or outlook on the transfer of wealth may change – all of which may give rise to problems that need to be fixed. During one's lifetime, most wills and trusts are … [Read more...]
Why Your Former Spouse May Still Receive Your Life Insurance Benefits
Believe it or not, your former spouse may still receive your life insurance benefits, instead of your current spouse, when you die. Although the idea that someone you divorced years ago might receive your life insurance benefits, instead of the person to whom you are currently married, seems rather nonsensical, the law does not always adhere to common sense. Why does this occur? When a couple gets divorced there are a great many thoughts and turbulent emotions swirling around in one’s head, as … [Read more...]
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