Silent Trusts: Could I Be the Beneficiary of a Trust and Not Know It?
After a trust has been created, the trustee has specific legal duties to the beneficiaries. Although a trustee’s duties vary by state, in most states, a trustee must disclose the trust’s existence, identify themselves as the trustee, and send the beneficiaries yearly accounting statements on request with information about the trust’s assets (accounts and property), taxes, distributions, and performance.
A silent trust eliminates the legal requirement that the trustee tells the beneficiaries about the trust’s existence or terms for a period of time. Typically, a silent trust’s terms will provide a triggering event, such as the beneficiary reaching a certain age or achieving a particular milestone or the trustmaker’s death or incapacity. The trustee’s obligations to inform the beneficiary begin only upon the occurrence of the triggering event.
3 Reasons Why Transferring Ownership Of Your Home To Your Child Is A Bad Idea
Another drawback to transferring ownership of your home in this way is the potential tax liability for your child. If you’re elderly, you’ve probably owned your house for a long time, and its value has dramatically increased, leading you to believe that by transferring your home to your child, they can make a windfall by selling it. And by transferring the property before you die, you may think that you can save your child both time and money by avoiding the need for probate.
Probate is the court process used to distribute your assets according to the wishes outlined in your will or according to our state’s intestate succession laws if you don’t have a will. Depending on the complexity of your estate, probate can be a long and expensive process for your loved ones; however, that expense is likely to be relatively minor compared to the tax bill your heirs could face.
If I Give My Home to My Child in My Will, Can They Take My Home While I Am Still Alive?
A will is a legal document that specifies what happens to your property upon your death. The key phrase here is “upon your death.” A will has no real legal significance until the time of your death. A will does not change title (ownership) to the property during your life, so naming your child in your will as the recipient of your home means that they have no ownership rights to your home until after your death. Also, you can rewrite or change a will at any time during your life while you are still mentally able to do so. Your child cannot take you home while you are still alive for these reasons.
You are using a will to give your house to your child at your death guarantees that they will have to go through the probate process to complete the title transfer. To avoid probate, some people will put their child’s name on the deed to their home while they are living, with the intent of continuing to own the house while they are alive and passing the home to their child at the time of their death. As discussed above, title to property is received through a deed.
How Naming Guardians For Your Kids In Your Will Can Leave Them At Risk
One of the most disturbing aspects of this situation is that you probably have no idea just how vulnerable your kids are since this is a blind spot inherent to the estate plan of countless parents worldwide. Even many lawyers aren’t fully aware of this issue – and that’s because most lawyers don’t understand what’s necessary for planning and ensuring the well-being and care of minor children.
Fortunately, you’ve come to the right place, whether you’ve named guardians for your kids in your will or have yet to take any action at all. As your Personal Family Lawyer®, we specialize in legal planning for the unique needs of families with minor children. We can ensure that you have all of the proper legal safeguards to ensure that your kids will always be cared for by the people you would want, in precisely the way you would wish to, should anything ever happen to you.
Does a Domestic Partner Have the Same Rights as a Spouse When It Comes to Estate Planning?
Everyone knows what a marriage is, but not everyone knows what a domestic partnership is. To answer whether domestic partners have the same estate planning rights as married spouses, it is helpful to define what a domestic partnership is.
A domestic partnership is an alternative to marriage created for same-sex couples who could not legally marry. However, when the US Supreme Court legalized same-sex marriage in 2015 in Obergefell v. Hodges, marriage became an option for same-sex couples. A domestic partnership is not just for same-sex couples; any couple can choose this status when marriage is not something they desire, for whatever reason.
Does Your Family Need Umbrella Insurance?
If you are sued, your traditional homeowners or auto insurance will likely offer you liability coverage. Still, those policies only cover you up to a certain dollar amount before they max out, and you can be held personally liable for anything beyond that limit. For this reason, you should consider adding an extra layer of protection by investing in personal liability umbrella insurance.
Umbrella insurance offers a secondary level of protection against lawsuits above and beyond what’s covered by your homeowners, auto, watercraft, and other personal insurance policies. Umbrella policies can cover a wide array of potentially ruinous costs related to a lawsuit, such as medical bills, legal fees, lost wages, court costs, and other expenses.
Three Steps to Take When the Deceased Has Controlled Substances
If your loved one was living in an assisted living facility or was in hospice before their death, check with the healthcare staff to determine whether they will dispose of the unwanted or expired medications. If you learn that you are responsible for their disposal and there are no specific disposal instructions in the medication package insert, or you have not received detailed disposal instructions from a healthcare provider, follow the steps below.
The first step for properly disposing of a deceased person’s controlled substances is to determine whether there is a drug take-back site or program nearby. This is the best way to dispose of unwanted or expired medications. You can check the Drug Enforcement Agency (DEA) website or ask about possible options at your local pharmacy or police station.
Protect Your Children’s Inheritance With A Lifetime Asset Protection Trust
Creating a will or a revocable living trust protects your kid’s inheritance. Still, in most cases, you’ll be guided to distribute assets through your will or trust to your children at specific ages and stages, such as one-third at age 25, half the balance at 30, and the rest at 35.
If you’ve created an estate plan, check to see if this is how your will or trust leaves assets to your children. If so, you may not have been told about another option to give your children access, control, and airtight asset protection for whatever assets they inherit from you.
What to Know about Non-Fungible Tokens
A nonfungible token (NFT) is a unique digital code that represents a digital item such as art or music, as well as a growing number of physical items, that runs on the blockchain (a secure, decentralized, and cryptography-backed online ledger) and provides proof of ownership of virtual collectibles. That explanation may confuse, and when it comes to NFTs, confusion, and excitement are present in equal parts.
NFTs can generate new revenue streams for creators and be a store of value for collectors. If you own NFTs or plan to invest in them, you should update your estate plan accordingly. Handing down an NFT is more complicated than passing on a physical item or another traditional asset. But with buzz building around NFTs, they could be among the most valuable things in your estate.