What if you could give your children assets in a trust and they could use them and yet they’d avoid estate taxation at their deaths? That’s what a “Generation-Skipping Transfer” Trust, or “GST” trust does. It is a trust which is designed to avoid estate taxation at the death of the beneficiary.How “GST”s WorkDuring the life of the beneficiaries, the assets in the trust are used for their health, education, maintenance, and support. After the beneficiary’s death, the assets go to his … [Read more...] about What is a GST Trust?
We have the opportunity to provide our clients with peace of mind, and this is a very gratifying part of our job. There are a number of different estate planning and elder law concerns that people typically have, and we help them craft plans that address them appropriately. In this blog post, we will look at some of the different matters that our clients care about and share the solutions that are typically utilized.Nursing Home Asset ProtectionThis sounds like an instance in overstating the … [Read more...] about Estate Planning: Cover All of Your Bases
58% of American adults have no will, no trust, and no estate plan at all, according to a recent study by Caring.com. Unfortunately, whether you plan for it or not, death is inevitable.Laws of IntestacyIf you have no plan, your state of residence has a plan for you, it’s called “intestacy.” With intestacy, your assets go to those the state has pre-determined. They may or may not be the people whom you love and who love you. Each state’s intestacy laws are slightly different. But, … [Read more...] about Planning is Critical
If you are like most people, you may not be familiar with the different types of trusts available in estate planning. The basic difference between testamentary and living trusts is when they become effective. A testamentary trust is a special type of trust that does not become effective until after your death. On the other hand, a living trust goes into effect when you create it and remains in effect during your lifetime. If you need help deciding which type of trust will best suit your estate … [Read more...] about Kansas City Trust Attorneys Explain the Difference Between Testamentary and Living Trusts
There are two new tax proposals being floated. One is an income tax proposal and the other is a wealth tax proposal.Income TaxRepresentative Alexandria Ocasio-Cortez (D-NY), one of the new class of legislators in the House of Representatives has suggested the rate of income taxation for high-earners be raised. She is suggesting a top rate for those making over $10 million per year be increased to 60% or 70%. She’s suggesting the proceeds could be used for a “Green New Deal” or other … [Read more...] about New Tax Proposals
TOD (Transfer on Death) designations, POD (Pay on Death) designations, and beneficiary designations can be useful in the right circumstances. Each of these tools allows for an automatic transfer to the named beneficiary at the death of the owner. But these tools can have a few shortfalls. First, if the named person predeceases the owner, typically it will not be effective to transfer the assets. Sometimes, you could name a contingent beneficiary and then it would go to that person. But, if there … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
A living trust is an estate planning tool that is commonly used by clients. Establishing a living trust has become a way to avoid the time and expense of probate. If you are considering including a living trust as part of your estate plan, you should know more about the living trust benefits you can expect.Understanding a Living Trust and How it WorksA "living trust" is a type of trust that becomes effective during your lifetime, as opposed to being established by your will upon your … [Read more...] about Living Trust Benefits You Should be Sure to Consider
A living trust is one of many important components of a good estate plan. Clients often have very important questions about how a living trust works and how you can benefit from including one in your estate planning. One question clients often ask is whether they can include their residence in a living trust even if that home is mortgaged. The Kansas City living trust attorneys at Gaughan & Connealy can answer this question and many others.Can Mortgaged Real Estate Be Placed in a … [Read more...] about Can You Transfer a Mortgaged Home to a Living Trust?
An Overland Park durable power of attorney is a useful tool that allows someone else to take control of and manage your affairs in case you become incapacitated. It must be specifically designated as “durable” so that it will remain in effect once you become incapacitated. Some clients assume that the agent given the control through an Overland Park durable power of attorney will automatically become their executor upon their death. That is not the case. Here is what you need to know.Agents … [Read more...] about Will the Agent of My Power of Attorney Become My Executor?
Most estate planning attorneys believe in comprehensive planning and, as such, recommend that clients, at minimum, create both a last will and testament and a durable power of attorney. The two estate planning tools can be used in conjunction to protect you and your assets during your lifetime and after your death. The durable power of attorney protects you during your lifetime and the last will and testament governs what happens to your assets after your death.What is a Power of Attorney?A … [Read more...] about If I Complete a Durable Power of Attorney, Do I Still Need a Will?