What is an Inheritor’s Trust?

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

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

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 [...]

Why a Spendthrift Trust Can Be a Great Solution for Your Heirs

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

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 [...]

By |2021-09-21T21:47:51+00:00July 16th, 2018|Categories: Estate Planning|Tags: , , , , , |0 Comments

IRAs, Annuities, and Guardianship – Providing for Your Minor Children After You Die

IRAs, Annuities and Guardianship: Providing for Your Minor Children after You Die 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 [...]

An Estate Planning Checklist to Facilitate Wealth Transfer

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 [...]

By |2021-09-21T19:18:36+00:00June 11th, 2018|Categories: Estate Planning|Tags: , , |0 Comments

How to Protect Your Child’s Inheritance from His or Her Untrustworthy Spouse

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 [...]

By |2021-09-21T19:24:46+00:00June 6th, 2017|Categories: Estate Planning|Tags: , , , , |0 Comments
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