Last week, we discussed some of the reasoning behind setting up a living trust and the basics of a living trust. While it is beneficial to have a living trust to avoid probate, it is also worth discussing that a living trust does come with its set of small inconveniences.
As we discussed last week, a trust is set up so that a trustee can properly allocate assets or property to a beneficiary, or the person receiving the assets or property. Traditional trusts are written while the trustor, or grantor, the person giving away the assets or property, is living and the assets or property is to be given out upon the trustor's death. One could also consider creating a living trust, often referred to as an "inter vivos" trust, since it is implemented while the trustor is still alive.
There are many things to consider when working on your estate planning. One option that many people consider is the establishment of a trust. A trust is created to help manage one's property and finances by making certain that it gets properly transferred to the people mentioned in the trust. Before we elaborate, there are a few terms that should be defined to make things easier.
Millions of Americans and fans throughout the world mourned the news of the passing of the legendary musician Prince. While his talents and music speak for themselves, unfortunately nothing spoke for his high asset net worth and vast estate. You see, Prince died without a will.
Probate, in its simplest term, is the transferring of one's property following their death. The process itself can be costly and lengthy. There are a few ways to avoid probate, which we have talked about in previous blog posts, However actions must have been taken prior to a death for those other options to be implemented.
Sometimes we need a reminder of the famous line by Benjamin Franklin. "There are only two certainties in life - death and taxes." While this comment was likely done in jest, it still holds true, and can be valuable for people to think about, especially when considering their future. As we all know but all too often forget or take for granted, no tomorrows are guaranteed, and we never really know when our time is up. We could continue with even more clichés, but the point is that an accident, injury or illness could strike any one at any time, and protecting yourself, your assets and your wishes in the event of a tragedy, should not be overlooked.
This blog recently answered the question regarding what a trust is and how it can help with an overall estate plan. An estate plan is a good idea for anyone at any age, regardless of the value of their personal property or number of assets they own. Wills and trusts provide different options to consider for transferring assets. There are a number of different estate planning tools to be aware of not just limited to wills and trusts.
There are a variety of different estate planning tools that are available to estate planners to help them develop an effective estate plan. A trust can be used as part of an estate plan to supplement a will or manage property during life. Trusts manage property by transferring the benefits and obligations of property to different recipients. Because trusts can help with property distribution, they are an excellent estate planning tool.
No one, in the history of mankind, has ever used the words "fun" to describe the probate process. In fact, it can be so drawn out, complicated and expensive that most people look for a way around it at all costs. Luckily, there are ways to get around it.
A will is an important center piece of any effective estate plan. Wills account for the property and assets of the estate planner and how the estate planner wants property and assets distributed. There are certain elements for a will to be valid so to achieve the wishes of the estate planner, it is helpful to be familiar with those rules and ensure that the will is properly executed.