Though there are variations, broadly speaking, there are two different types of trusts: revocable trusts, and trust that cannot be revoked. There are people that wonder why you would want to use an irrevocable trust that ties your hands when there is another option.We will provide the answer is this post.Incidents of OwnershipIn the legal realm, there is a concept called “incidents of ownership.” You surrender incidents of ownership if you have an irrevocable trust, because you are … [Read more...] about Three Reasons to Use an Irrevocable Trust
A lot of people think that an estate plan is a simple will, and that's the end of the story. In fact, this is a gross oversimplification. When you create a will, there are some other documents that should go along with it. Additionally, in many (if not most) cases, a will is really not the best asset transfer choice.Additional DocumentsYour estate plan should anticipate eventualities that may befall you toward the end of your life. Incapacity is quite common among elders, and if you do … [Read more...] about Don’t Assume That a Will Is All You Need
This post is a follow-up from a previous entry that examined certain types of asset transfers that take place outside of the legal process of probate. To provide a quick review, a will would be admitted to probate by the executor, and the court would provide supervision.The probate process is costly and time-consuming, and probate records are available to all interested parties because it is a public proceeding. These drawbacks negatively impact the rightful heirs, so people who are aware of … [Read more...] about This Estate Planning Tool Provides Sweeping Benefits
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
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
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
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
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?
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?
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