To effectively plan your estate, you must carefully consider the specific needs of each person on your inheritance list. There are numerous different ways to facilitate asset transfers. The best course of action will vary on a person by person basis. When you act in an informed manner, you can prevent unintended negative consequences. With this in mind, we would like to explain the value of special needs trusts. Government Benefit Recipients Many people who have disabilities are enrolled …
Is a Revocable Living Trust Only for the Rich?
All trusts are not created equal. There are different trusts that are utilized to accomplish varying different objectives. Many people are under the assumption that trusts are only useful for the wealthy, but this is not the case. Irrevocable Trusts High net worth individuals often have estate tax concerns. There is a federal estate tax that carries a $5.34 million exclusion. If your assets exceed this amount, you must take steps to gain estate tax efficiency. It should also be noted …
June Seminars to Cover Living Trusts and Medicaid Asset Protection
Knowledge is power when you are planning your estate. When you have a thorough understanding of your options, you can make informed estate planning decisions. We make a concerted effort to disseminate sound information to our neighbors in and around Long Island. During the month of June we will be offering a series of seminars that will cover living trusts and Medicaid asset protection. These seminars are being offered free of charge, but we do ask that you register in advance so that we …
Why Would I Want a Revocable Living Trust?
A revocable living trust is a very useful and popular estate planning device. There are a number of benefits that you gain when you create a revocable living trust, and we will look at a few of them in this post. Incapacity Planning Incapacity is quite common among elder Americans. There are various different causes of incapacity, but Alzheimer's disease is a leading culprit. Over 40 percent of people who are 85 years of age and older have contracted Alzheimer's disease. With a …
What Is a QDOT Trust?
In the field of estate planning the acronym QDOT stands for a qualified domestic trust. To understand the value of a qualified domestic trust, you must know a few things about the federal estate tax. Estate Tax Parameters The federal estate tax credit or exclusion is $5.34 million in 2014. This is the amount that can be transferred free of taxation. If you are leaving behind more than $5.34 million, the estate tax is potentially applicable. The tax carries a maximum rate of 40 percent. There …
What Is a QTIP Trust?
When you are looking for information about estate planning, you may run into a rather confusing series of acronyms. We try to demystify things here on our blog and explain what the alphabet soup is all about. In this post we will look at the legal device called a QTIP trust. Estate Planning & Remarriage Any time you are going through a significant life event, such as a change in marital status, you should discuss the estate planning implications with your attorney. Your existing estate …
Do All Trusts Preserve Wealth?
Estate planning for high net worth individuals will involve the implementation of wealth preservation strategies, because the proverbial tax man is standing at the ready prepared to pounce as soon as you pass away. Some people are under the assumption that you are surrendering personal possession of assets once you place them into a trust of any kind. This would lead you to the belief that assets that you have conveyed into a trust would not be counted by the IRS when your estate tax exposure …
Will I Still Have Control of My Property if I Establish a Revocable Living Trust?
People sometimes do not consider the possibility of creating a living trust because they harbor certain misconceptions. One of these misconceptions is the notion that you surrender all control of property that you convey into a revocable living trust. This is simply not the case. When you create a revocable living trust, you are not surrendering control of the assets while you are living. A trust consists of the grantor, which is the person who creates the trust; a trustee who administers the …
April Is Dedicated to Promoting Autism Awareness
People who have special needs often times rely on government benefits to pay for very expensive care and treatment. Medicaid is the source, and many of these individuals also receive Supplemental Security Income from the government. With the above in mind we would like to take a look at the impact of autism from an estate planning perspective because April is dedicated to promoting autism awareness. A lifetime of care for someone with autism can cost millions of dollars. Because of this …
Fact vs. Fiction in Creating a Will
Creating a will is the cornerstone of estate planning. It handles several critical aspects of your estate, and we address several areas of misinformation regarding drafting a will. Fiction: If you do not have a will, the state will take your property. Fact: If you die without a will, which is called dying intestate, your property is distributed according to the state’s laws of intestacy. This gives your property to your heirs based on the closest living relative. The ‘matrix’ of …
Four Reasons to Use A Special Needs Trusts
A special needs trust, also known as a supplemental needs trust, is an estate planning tool used to allow assets to be held in trust for the benefit of a physically or mentally challenged individual, or a person with a chronic or acquired illness. This type of trust allows you to provide a resource to pay for any needs over and above the basic benefits that may be provided by the government. There are four reasons to consider working with a trust attorney to establish a special needs trust for …
Three Reasons You Need a Pour-over Will with a Trust
If you are using a Living Trust as a will substitute, you will still need an estate planning tool known as a pour-over will. Why? 1. A pour-over will names a Guardian to minor children. Naming a Guardian to your children is one of the primary reasons parents draft a will, and this task cannot be handled by creating a trust. 2. A pour-over will names an Executor to the estate. A pour-over will names an Executor and at least one backup Executor, should the primary …
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