There are some common threats to your assets that you may have already thought about, and maybe even planned for in your estate plan. Among those are things such as your own divorce, which could result in the loss of assets because of the required division of marital assets. Economic downturn and failed business ventures are also things people typically recognize as possible threats to their assets along with the impact that federal and/or state gift and estate taxes could have on your estate … [Read more...] about What are some common threats to my assets?
What is a family foundation?
Creating a family foundation is yet another way to include charitable gifting in your estate plan. This option, however, if best used when you have considerable assets to gift and the time to run the foundation once it is established. The benefits of using a foundation as your charitable gifting vehicle are numerous though, starting with the amount of control you will retain over how your gifts are used. In addition, creating a charitable foundation makes it much easier to involve your children … [Read more...] about What is a family foundation?
Should I use a donor advised fund for my philanthropy?
Another option for making charitable gifts within your estate plan is to use a donor advised fund or annuity. A donor advised fund works by first transferring gifted assets into the fund. Although you will no longer own the assets, you will be able to direct how the funds are used. If you gift to an annuity, you will also be able to choose the beneficiary who will receive the benefits from the annuity. … [Read more...] about Should I use a donor advised fund for my philanthropy?
How do I choose a Trustee for my charitable trust?
The Settlor (creator) of any trust appoints the Trustee. As the Settlor, you may anyone you choose to be the Trustee; however, given the complex nature of a charitable lead or remainder trust you may wish to consider appointing a professional Trustee. One of the most common mistakes settlor’s make is appointing a family member or close friend as their Trustee without actually considering whether or not the individual is well suited for the position. Given the duties and responsibilities of a … [Read more...] about How do I choose a Trustee for my charitable trust?
What is a charitable lead trust?
A charitable lead trust works just like a charitable remainder trust in reverse. In other words, assets from the trust are distributed to at least one charitable beneficiary for a specified period of time first. At the end of that time period, the assets remaining in the trust are distributed to at least one non-charitable beneficiary. Assuming you made a gift of $2 million to a charitable lead trust, the trust terms might direct yearly distributions in the amount of $50,000 to be made to your … [Read more...] about What is a charitable lead trust?
What is a charitable remainder trust?
In a charitable remainder trust assets are first distributed to at least one non-charitable beneficiary for a specified period of time with the remainder assets being distributed to at least one charitable beneficiary at the end of the time period. For example, imagine that you established a charitable remainder trust and transferred $1 million into the trust. The trust terms might provide for distributions of $20,000 to each of your four children for ten years. After ten years, the assets … [Read more...] about What is a charitable remainder trust?
Is there a better option?
Yes. Many people use a trust to make charitable gifts within their estate plan because of the numerous advantages a charitable trust offers. For instance, you have the ability to retain a significant amount of control over how your designated charity uses the assets you gift through the trust terms you create as the Settlor of the trust. In addition, when you create a trust you choose a Trustee who is responsible for managing the trust and protecting the trust assets, offering additional … [Read more...] about Is there a better option?
Can I use my Last Will and Testament to make charitable gifts?
You can make charitable gifts in your Will; however, there are a number of drawbacks to using this method for anything but a small, one time gift. For most people, the number one disadvantage to making charitable gifts in a Will is that doing so does not allow you to retain any control over how the gift is used by the beneficiary. Typically, when a gift is made in your Will the funds or assets gifted become the property of the recipient with no strings attached. In addition, if you wish to make … [Read more...] about Can I use my Last Will and Testament to make charitable gifts?
What is Medi-Cal planning?
Medi-Cal planning uses legal tools and strategies to protect your assets and ensure that you will be eligible for Medi-Cal if the need arises in the future. If you have not yet discussed the benefits of Medi-Cal planning with your estate planning attorney, now is the time to do so. … [Read more...] about What is Medi-Cal planning?
Will my spouse be left without income or resources if I need to qualify for Medi-Cal?
There was a time when this was the case; however, the Medicaid Spousal Impoverishment Rules now prevent that from happening. The Spousal Impoverishment rules allow a community spouse to keep some of the marital assets and, in some cases, some of the nursing home spouse’s monthly income to ensure that the community spouse is not left without sufficient income and/or resources … [Read more...] about Will my spouse be left without income or resources if I need to qualify for Medi-Cal?
