Sometimes people adopt a particular perspective without knowing all the facts. This can enter the realm of estate planning when it comes to living trusts. You could assume that a living trust does the exact same thing as a last will. Why should you create a trust when a simple will can do the trick? In reality, this is a shortsighted viewpoint, because there are a number of different reasons why a trust could be a better choice. Let's look at some of them. Efficient Asset …
Can I Establish a Trust for the Benefit of My Dog?
The process of estate planning can have many different twists and turns. As you grow older and your life changes, your estate planning objectives can change as well. There can be variables that enter the picture that were not a factor when you were younger. Along these lines, consider the dynamic that you may experience when you are an elder with regard to contact with others. It is not a very pleasant scenario to think about, but many elders do experience loneliness to one degree or another. …
Estate Planning: The Consequences of Inaction
There are far too many people who fail to understand the importance of estate planning. If you go through life without making any plans for something that will definitely happen, negative consequences can result, and your family members will pay the price. Let's look at some of the negative consequences that can come about due to estate planning inaction. Inappropriate Asset Distributions If you do not have an estate plan in place, the state would use intestate succession laws to distribute …
What Is End of Life Planning?
You make preparations for events that will take place after you pass away when you plan your estate, and this is self-evident. At the same time, end of life planning is also an important part of the process. After your active retirement years are behind you, there are certain eventualities that you may face when you enter the latter stages of your life. One of them is possible incapacity. People often become unable to communicate due to medical conditions, and this is one form of …
Elder Financial Abuse Study Is Turning Heads
If you discuss the eventualities of aging with a licensed elder law attorney, you may find out about some possibilities that are quite disconcerting. No one is especially anxious to confront these types of things, but at the same time, sticking your head in the sand can make you vulnerable in the long run. One of these elder law issues is the matter of elder financial abuse. This problem started to come to light a number of years ago, and research has been done that sheds some light on the …
Business Formation and Asset Protection
There are different legal structures that can be used for asset protection if you are a business owner. Asset protection is going to be particularly important to people who are pursuing certain business interests. Landlords would be at or near the top of this list. When you rent out property, people who are occupying or visiting the property could become injured, and this is an inherent risk that all landlords face. If the rental property is in your direct personal possession and intermingled …
Is Probate Really a Problem?
The legal process of probate takes place under the supervision of the Surrogate's Court in the state of New York. If you die while you are in sole and direct personal possession of property, it would become probate property after you pass away. This would be true if you had no estate planning documents at all, and it would also be true if you had a last will in place at the time of your passing. Though there are some procedural tasks that must be completed during the probate process, it …
Tax-Free Giving Provides Estate Tax Efficiency
People who are exposed to death taxes must implement estate tax efficiency strategies. This tax does not apply on asset transfers between spouses who are American citizens, but it is potentially applicable on asset transfers to others. There is a federal estate tax exclusion that defines the amount that can be transferred before the estate tax would be applied. During the current calendar year, the federal estate tax exclusion is $5.43 million, but there are annual adjustments to account for …
Planning Is Important for the Sandwich Generation
During our current era, sandwich generation planning has become quite important. When mature adults are still raising children while they are caring for their aging parents, they are members of the sandwich generation. Juggling Priorities It can be very difficult to juggle these priorities from a financial perspective. You often hear financial planning counselors talk about the importance of retirement planning. Indeed, it can take sustained discipline to put aside the resources that you need …
Avoid These Four Estate Planning Mistakes
Estate planning is a serious responsibility for every adult, but unfortunately, a significant percentage of people have not executed all the appropriate estate planning documents. Plus, those that do often make mistakes that yield unintended consequences. In this blog post, we will look at five estate planning mistakes that you should definitely avoid. Taking Matters Into Your Own Hands There are websites on the Internet that sell boilerplate estate planning documents like last wills. …
Do You Lose Control When You Create a Power of Attorney?
The incapacity component is an important thing to address when you are planning your estate. Of course you want to prepare for things that will take place after you are gone, but unfortunately, many people go through a period of decline before they pass away. We have all heard of Alzheimer's disease, but it gets your attention when you find out how widespread it has become during our current era. The Alzheimer's Association is a good source of information about the disease. According to their …
Should I Use a Revocable or Irrevocable Trust?
When you hear about the fact that there are revocable trusts and irrevocable trusts, you may wonder why you would use one and not the other. On the surface, a revocable trust sounds better in a general sense, because you would have the ability to dissolve the trust and take back the assets if you ever change your mind. This ongoing control can be a good thing under certain circumstances. When you have a revocable living trust, you can rescind it entirely, but while it is intact you can act as …
See Larger Map
Get Directions