A trust creates a special relationship between people and property that the trust owns. The person who created the trust, called the trustor, transfers ownership of his or her property to the trust as the new owner. Trustors are also sometimes referred to as settlors and trust makers. The trustor also states who shall receive the benefit of that property, a person known as a beneficiary, and who shall manage the property for the trust, known as the trustee. But can a trustor also be a … [Read more...]
An Update On ABLE Accounts
We have previously wrote about the long-awaited arrival in California of the so-called ABLE accounts. Formally, known as an Achieving a Better Life Experience (ABLE) account, they are a low-cost, easy-to-access plan established by federal law that began rolling out in 2016 and is now available in California. Modeled after the so-called “529 accounts”, an educational savings program offered by individual states, ABLE accounts let children or adults with disabilities incurred before age 26 … [Read more...]
Trusts — Irrevocable Versus Revocable
Trusts are often an important tool used in the creation of an estate plan given the versatility and variety offered by a trust. At their core, all trusts are the same. You, as the trustor, must name at least one beneficiary, appoint a trustee to manage trust assets and designate assets that you will use to fund the trust. Beyond the basics, trust can be as complicated, or as simple, as your needs require. The first decision you must make is whether to create a revocable or an irrevocable … [Read more...]
What is a POLST and Do I Need One?
In every estate plan we prepare in our office, we include an Advance Health Care Directive (AHCD) and a form that authorizes disclosure of medical information to designated individuals you have appointed to positions in your estate plan. This latter form is done to comply with the so-called HIPAA law.An advance health care directive is a legal document you use to provide guidance about what types of treatments you may want to receive in case of a future, unknown medical emergency. It also … [Read more...]
Let’s Talk About Charitable Trusts
Typically, charitable lead trusts and charitable remainder trusts are implemented when your estate exceeds the federal estate tax exemption. This qualifies both charitable trusts as “advanced” estate planning tools.Besides lessening or totally avoiding the federal estate tax, there are income tax, capital gains tax, and charitable intent benefits as well.Simply put, the charitable lead trust provides an income stream to your favorite public charity for a period of years (up to 20) or … [Read more...]
Do You Need Life Insurance?
Periodically, sit down and reevaluate your need for life insurance. It’s often an essential part of an estate plan.Life insurance can be used to:Replace income Fund a business buy – sell agreement Create an estate Pay federal estate taxes Equalize an estate Provide an inheritance for a child not in the family businessGeneral life insurance tips:Only pay premiums that won’t take food off your table. If you are insurance poor, you’ll end up dropping it. Term … [Read more...]
If You’re in a Second Marriage, It is Important to Plan to Protect Your Children
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...]
