Everyone has heard of the simple will that can be used to state your final wishes with regard to inheritances. However, you may not know there are other types of wills used in the field of estate planning. We will look at some of them here. Advance Directives for Health Care A comprehensive estate plan will address situations that can arise toward the end of your life. For example, you may become unable to communicate immediately before your passing. You can plan for this in advance if you … [Read more...] about Did You Know There Are Different Types of Wills?
Estate Planning
Spring Summit 2022: Celebrating Friendship in the Lone Star State
The best Estate Planners stay current on the latest trends. The American Academy of Estate Planning held its semi-annual conference providing education and learning for and inspiring excellence in its Members. Read on to learn more about the unique experience at the conference. … [Read more...] about Spring Summit 2022: Celebrating Friendship in the Lone Star State
The Power in Powers of Appointment
Estate Planning attorneys balance competing interests when creating estate plans. Uncertainty about the future concerning taxes and each beneficiary’s situation requires flexibility in an Estate Plan. Powers of appointment offer Estate Planning attorneys a way to add flexibility to a plan without complication. When creating powers of appointment, it’s important to consider not only the reason for including the power but also the way it needs to be exercised. Read on to learn more … [Read more...] about The Power in Powers of Appointment
Are Assets in a Living Trust Protected From Creditors?
Some people are under the impression that you lose control of assets that you convey into a trust. The purpose of using the trust is to get assets out of your name for some reason, right? This is a misconception that is based on a partial truth. Absolutely, people do use trusts to transfer assets out of their names because it serves a purpose. These are irrevocable trusts. There is another option called the revocable living trust. Living Trust Benefits A revocable living trust will not … [Read more...] about Are Assets in a Living Trust Protected From Creditors?
The Toll of Serving as Fiduciary
Estate Planning attorneys balance competing interests when helping clients decide who they should name as personal representative and trustee. Some of the factors that a client needs to consider are the nominee’s responsibility, financial savvy, and temperament. These factors influence the fiduciary’s ability to pay debts, expenses, claims, negotiate on behalf of the estate, and to conclude the administration of the estate or trust. While many individuals consider acting in this capacity a great … [Read more...] about The Toll of Serving as Fiduciary
Can You Revoke a Trust?
Some people assume that one of the differences between a will and a trust is the fact that you can destroy or change a will at any time, but a trust is permanent. This is not entirely true, but it is not entirely false either. We will provide some clarity on this topic below. Irrevocable Trusts There are trusts that cannot be revoked (though there are limited exceptions to the rule). You surrender incidents of ownership when you establish this type of trust. Under some circumstances, this can … [Read more...] about Can You Revoke a Trust?
Business Succession Planning May Be Easier than You Think
Many Estate Planning attorneys shy away from business succession planning, but if you approach it like you do any other asset, it’s not so scary! First, it’s important to understand that entities involve not just the business relationship, but family relationships as well. Often, businesses start with one or maybe two members of a senior generation who have the funds, desire, and connections to create the business. It’s not always clear, though, what will happen when that senior generation … [Read more...] about Business Succession Planning May Be Easier than You Think
Will My Family Pay Inheritance Taxes?
People naturally have questions about the taxes that can come into play when inheritances are being distributed. There is not much good news to pass along about taxation in most cases, but this is an exception. You do not have to report an inheritance as income, and this includes insurance policy proceeds. Another benefit is the step-up in basis, which applies to capital gains taxes. This means assets you inherit are valued as of the date of inheritance. If you inherit assets that … [Read more...] about Will My Family Pay Inheritance Taxes?
What an In Terrerem Clause Can Do for You
Estate Planning practitioners field questions regarding disinheriting beneficiaries regularly. The second question often relates to what happens when that beneficiary or any other tries to have the estate plan or portions thereof overturned. An “in terrorem” or “no contest” clause usually acts as a deterrent to such beneficiaries by completing divesting them of their inheritance should they choose to initiate a lawsuit. Read on to learn more … [Read more...] about What an In Terrerem Clause Can Do for You
Five Ways a Trust Can Be Better Than a Will
Many people equate estate planning with the creation of a last will. In fact, most individuals would be better served by utilizing a revocable living trust. In this post, we will share five compelling reasons why you should use a living trust instead of a will. 1. Probate Avoidance You may have watched a movie or a television show that depicted a scene taking place after a funeral. People gather at someone’s home after the service. Certain individuals are then called into the study for the … [Read more...] about Five Ways a Trust Can Be Better Than a Will
