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INHERITANCE

What is an Inheritor’s Trust?

By |2019-06-05T09:47:53+00:00May 28th, 2019|Categories: ESTATE PLANNING, Trusts|Tags: , , , , |

When it comes to estate planning there are several types of tools you can use, depending on your circumstances. One such estate planning tool is the trust. There are numerous types of trusts aimed at fulfilling different estate planning purposes. If you are anticipating an inheritance, there is a special type of trust designed to help protect it: an inheritor’s trust. Purpose of an Inheritor’s Trust An inheritor’s trust is a trust that has been established for the purpose of receiving a beneficiary’s inheritance in a way that is protected legally and financially. In order to fulfill its intended purpose, [...]

PROTECTING YOUR CHILDREN’S INHERITANCE WHEN YOU ARE DIVORCED

By |2019-06-05T11:19:07+00:00August 23rd, 2018|Categories: DIVORCE, ESTATE PLANNING, Trusts|Tags: , |

Consider this story. Beth’s divorce from her husband was recently finalized. Her most valuable assets are her retirement plan at work and her life insurance policy. She updated the beneficiary designations on both to be her two minor children. She did not want her ex-husband to receive the money. Beth passes away one year after her divorce. Her children are still minors, so the retirement plan and insurance company require an adult to be appointed to receive the inheritance Beth left behind. Who does the court presumptively look to serve as the caretaker of this money? Beth’s ex-husband who is [...]

THE BIGGEST THREATS TO SUCCESSFUL ESTATE PLANNING

By |2019-06-06T14:42:10+00:00August 23rd, 2018|Categories: ESTATE PLANNING, PROBATE|Tags: , , |

Poor estate planning is a recipe for disaster. Look no further than Dickens’ Bleak House—or a telenovela—to witness the tragedy and melodrama inadequate estate planning can cause. While having your estate planning documents prepared is the first hurdle to overcoming these types of disasters, there are several threats that lurk around the corner that might derail your wishes. Family Conflict According to a TF Wealth survey of over 100 estate planning professionals, family conflict is the number one risk to a peaceful inheritance. If children are treated differently under the estate plan, there is often an assumption that a mistake was made [...]

5 TRAGIC MISTAKES PEOPLE MAKE WHEN LEAVING ASSETS TO THEIR PETS

By |2019-03-07T07:44:50+00:00July 8th, 2018|Categories: ESTATE PLANNING|Tags: , , |

A pet trust is an excellent way to make sure your beloved pet will receive proper care after you pass on. The problem, of course, is that you won’t actually be there to see that your wishes are carried out. It’s critical to set up a pet trust correctly to ensure there are no loopholes or unforeseen situations that could make your plans go awry. Here are 5 tragic mistakes people often make when leaving their assets to their pets. Appropriating more than the pet could ever need. The gossip stories about such-and-such celebrity who left his or her entire fortune [...]

AN ESTATE PLANNING CHECKLIST TO FACILITATE WEALTH TRANSFER

By |2019-03-07T07:57:46+00:00June 11th, 2018|Categories: ESTATE PLANNING|Tags: , , |

Studies have shown that 70% of family wealth is lost by the end of the second generation and 90% by the end of the third.  Help your loved ones avoid becoming one of these statistics. You need to educate and update your heirs about your wealth transfer goals and the plan you have put in place to achieve these goals. What Must You Communicate to Future Generations to Facilitate Transfer of Your Wealth? You must communicate the following information to your family to ensure that they will have the information they need during a difficult time: Net worth statement, or [...]

IRAS, ANNUITIES AND GUARDIANSHIP: PROVIDING FOR YOUR MINOR CHILDREN AFTER YOU DIE

By |2019-03-07T08:52:27+00:00April 16th, 2018|Categories: ESTATE PLANNING|Tags: , , , , , |

Deciding on a guardian for your minor children may very well be the most vexing decision you’ll make regarding your estate planning. Not only must you trust the appointed guardian to raise your children as you’d want them raised, but you also need that person to be financially responsible with your children’s inheritance. For example, if you have an IRA or an annuity that you wish to pass to your minor children, how can you ensure those funds will be used properly—especially if the person you trust most to raise your kids isn’t necessarily the best with finances? This question is [...]

WHY A SPENDTHRIFT TRUST CAN BE A GREAT SOLUTION FOR YOUR HEIRS

By |2019-03-07T09:22:10+00:00April 2nd, 2018|Categories: ESTATE PLANNING|Tags: , , , , , |

There are many tools that can be used when putting together your estate plan. One such tool is a trust. A trust is a fiduciary arrangement, established by a grantor or trustmaker, which gives a third party (known as a trustee) the authority to manage assets on behalf of one or more persons (known as a beneficiaries).  Since every situation is different, there are different types of trusts to ensure the best outcome for each beneficiary. One type of trust, known as a spendthrift trust, is commonly used to protect a beneficiary’s interest from creditors, a soon-to-be ex-spouse, or his [...]

WHAT TO EXPECT FROM ESTATE PLANNING IN 2018

By |2019-03-07T12:38:32+00:00January 8th, 2018|Categories: ESTATE PLANNING|Tags: , , , , |

2017 is now fading into the rearview mirror. As we all look ahead to 2018, let’s consider a few things to watch regarding estate planning, so you and your family can be completely protected. The death tax. The death tax has been in a state of flux ever since the early 2000s when the Bush administration’s first tax cuts changed the exemption and tax rates. The recently-passed Tax Cuts and Jobs Act is the latest significant change. Starting January 1, 2018, the estate tax exemption amount will double to $11.2 million per person (married couples have $22.4 million of combined exemption). [...]

PLANNING FOR THE FUTURE (WITHOUT A CRYSTAL BALL)

By |2019-03-07T12:36:10+00:00September 27th, 2017|Categories: ESTATE PLANNING|Tags: , , , , , , , , |

Creating a will, trust, or any type of estate plan has always involved dealing with an uncertain future. Consider that just 20 years ago in 1997, the estate tax had an astonishing 55% rate with only a $600,000 exemption. Back then, tax-driven estate planning was a mathematical necessity for a large segment of the population. Fast forward to 2017. Not only do we now have a generous $5.49 million exemption and a lower 40% rate, we also have renewed emphasis and action from the President and Congress on repealing the estate tax, as evidenced by the September 27, 2017 Unified Framework [...]

HOW TO PROTECT YOUR CHILD’S INHERITANCE FROM HIS OR HER UNTRUSTWORTHY SPOUSE

By |2019-03-07T12:51:47+00:00June 6th, 2017|Categories: ESTATE PLANNING|Tags: , , , , |

Parents who develop an estate plan often do so to provide for their heirs financially. Many want to make sure hard-earned assets, family heirlooms, or closely held businesses stay within the family. Indeed, a common question is what cost effective options are available to protect one’s children’s inheritance from a spouse in the event of untrustworthiness or divorce. Thankfully, there are many ways to structure your child’s inheritance to help ensure it will remain in the family for future generations. Let’s look at a few of the options now. Create a Trust A trust involves three parties: (1) the person creating [...]