It is important to understand the fact that there are many different estate planning approaches that can be taken. You never have to settle for an asset transfer method that you do not feel entirely comfortable with, because you can rest assured that other options exist.With this in mind, let’s look at the value of incentive trusts.Constructive GuidanceThe best way to explain the way an incentive trust can be used is through the presentation of a simple example.Let’s say that you are … [Read more...] about An Incentive Trust Can Provide a Solution
Wills vs. Trusts: Understand the Distinctions
A simple last will is considered by many to be the estate planning tool of choice for people who are not very wealthy. In fact, this is not necessarily the case.You have limitations when you use a will. Lump sum distributions would be distributed to the heirs, and this can be a source of concern if you have people in the family who are not great money managers. Plus, the inheritances would be fair game if anyone on your inheritance list was to be the subject of a legal judgment.The … [Read more...] about Wills vs. Trusts: Understand the Distinctions
Planning for Incapacity
Every year, many people in the United States are unable to manage their own affairs due to incapacity. They might be young or old. They may have had a gradual decline or a sudden onset. They might have had a stroke, heart attack, or some disabling disease such as Parkinson’s, Alzheimer’s, or COVID-19.If you are incapacitated without having prepared, it can be an ordeal for you and those who care for you. Your loved ones might need to go to court to have you declared incompetent and have a … [Read more...] about Planning for Incapacity
Building Flexibility into Your Plan
When you prepare your estate plan, there are formalities required. In most states, a Will must be signed by the testator (the person whose property is governed by the Will) and that signature must be witnessed by two people and notarized by an official notary. The rules vary a little from state to state. For example, in some states, three witnesses are required. In other states, a Will need not be witnessed by others, as long as it is entirely in the handwriting of the testator and signed by the … [Read more...] about Building Flexibility into Your Plan
Do You Really Need an Estate Planning Lawyer?
Some people think that estate planning boils down to one simple act. You take a few minutes to fill in the blanks on a last will template that you buy from some company on the Internet, and the task has been completed.In reality, there is a lot more to consider if you want to be properly prepared. Let’s look at a number of different reasons why you would do well to engage an estate planning lawyer.Asset Transfer DevicesOne of the first things you should understand about the process of … [Read more...] about Do You Really Need an Estate Planning Lawyer?
Consider a Shared Living Trust
A living trust is a very useful estate planning tool that can be a great alternative to a last will. Why would you look for alternative?People who think that a will is the best choice because the heirs receive inheritances quickly with no hassles are sorely mistaken. If you use a will to state your final wishes, you would name an executor to act as the administrator. This person would not be able to act in a vacuum.Under the laws of the state of Kansas, the will would be admitted to … [Read more...] about Consider a Shared Living Trust
Will vs. Trust: What’s the Difference?
You may wonder why anyone would use a trust instead of a last will. After all, a will is simple and easy to create, and the executor can transfer assets to the inheritors quickly and efficiently, right?In reality, this is a widely held misconception. Let’s look at the differences between wills and trusts.Will Limitations and DrawbacksIf you use a last will, the executor who you name in the document would admit the will to probate. The court would oversee the proceedings, and during … [Read more...] about Will vs. Trust: What’s the Difference?
Do I Really Need a Will?
Some people think that they do not need a will because the state will step in and take care of everything appropriately. In fact, there are some very good reasons why everyone should have a will or some other estate planning document, and we will give you a quick rundown in this blog post.The Condition of IntestacyIf you pass away without a will, the condition of intestacy would exist. Under these circumstances, the probate court would supervise the estate administration process during … [Read more...] about Do I Really Need a Will?
Are You Aware of the Gift Tax?
People often have questions about inheritances and taxation, and they are usually pleasantly surprised when they hear the answers. First, heirs who receive bequests do not have to report them as taxable income, so that can seem like a break, but it is only fair.This is because an estate is comprised of property that was retained after the decedent paid taxes throughout his or her life.Another positive from a tax perspective is the step-up in basis for appreciated assets. If you inherit … [Read more...] about Are You Aware of the Gift Tax?
Three Estate Plan Components You May Overlook
One of the major reasons why you should seek out personalized attention from a licensed estate planning attorney is because there are some minute details that you may not consider. Some of them are going to be naturally relevant to you, and others could be if you are aware of the possibilities. We will provide some clarity in this post.Latter Life Decision-MakingPeople naturally think about the events that will take place after they pass away when they are involved in their getting their … [Read more...] about Three Estate Plan Components You May Overlook
