Estate planning can extend your loving support and guidance to your children even after you are gone. If you have a child with an addiction problem such as alcoholism or other substance abuse issue, you can put your best efforts forward in ensuring that the inheritance you leave for him won’t be used to fuel the addiction or even kill him. Perhaps, this is one of the most important benefits of estate planning for adult children. Alcoholism runs rampant and often does not rear its ugly head … [Read more...]
Estate Planning Q and A: Part II of III
One of the best parts of an estate planning attorney’s job is answering client questions. It’s an essential part of the estate planning process so we’ve outlined some of your questions below. This is part II in our three part estate planning question series. Do I have to leave my children an inheritance? No, even minor children are not legally entitled to an inheritance. Many would argue that there is a moral obligation to leave funds for the care of minor children. If you choose not … [Read more...]
How Not To Leave Your Home To Your Kids
One thing that some people try to do to avoid probate is to transfer their house to their children while they are alive. For many, it seems like the simplest and easiest solution. This can be accomplished by adding the child to to ttile to the house as a joint tenant or by gifting it to them outright. However, a cautionary tale, that may or may not be literally true, illustrates what can happen when you do this. The story involves a judge who made a big legal error. The judge’s daughter and … [Read more...]
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...]
What You Need to Know About Testamentary Trusts
A good trust is one that suits your needs and desires. For many parents with young children, a testamentary trust is exactly what you are looking for if you are concerned about your children being able to manage property if you were to die suddenly. Here are a couple of quick points about testamentary trusts and why they are useful. The trust relationship. Every trust is basically a specific legal relationship between certain people. When you create a trust you select who these people are and … [Read more...]
Special Needs Planning; Some Considerations
If you are the parent of a child with special needs, planning for his or her future without parents is a more critical matter than the issue would be for a parent of a child who is not disabled. The concerns are twofold: who will your care for child if you become incapacitated and what happens to the child at your death? Some of the questions you need to consider when you begin the planning process are: Whom would you trust as guardian for your child if you were unable to care for them while … [Read more...]
Planning Considerations for Real Families
In an ideal world, all of our children or other beneficiaries would be fully grown, responsible, and disability-free upon our deaths. However, we don’t live in a perfect world and unforeseen circumstances often exist. Whether your beneficiaries are minors, are receiving assistance from the government based on a disability, or are otherwise not in the best position to manage an inheritance, there are plenty of great solutions available through proper estate planning. If your beneficiary is a … [Read more...]
Incentive Trusts: Using Your Legacy to Benefit Your Loved Ones
Leaving someone an inheritance is not as simple as adding some zeros to his or her bank account balance. It can be…but this is not always in the best interests of your loved ones. It’s likely that some of your heirs are mature and established with a history of being able to handle their own affairs appropriately, and you may have no concerns about them. But you may also have some younger heirs who have not yet made their marks in life, or some family members who have personal problems or a … [Read more...]
Family Arguments
Families argue. It's not the most shocking statement ever made because it's true and we all know it's true. However, it's a more shocking opening than the actual subject of this post: families argue about money. It's a universal truth and a statement that should not surprise anyone. Yet, many people do not think about it when they are making their estate plans. It does not matter how much wealth, or lack thereof, you leave behind, your family may well have arguments about it. Not everyone will … [Read more...]
IRA Beneficiary Designations and Children
Retirement accounts play an important role in estate planning, one of the main benefits being that retirement accounts avoid probate, as they pass to a named beneficiary using a beneficiary form that you complete when you open your account. IRAs, Individual Retirement Accounts, are not only powerful estate planning tools, but they, of course, are great vehicles for saving for retirement with tax benefits. In fact, the income tax on an IRA is payable only when funds are withdrawn from the plan, … [Read more...]
