Posts Categorized: Estate Planning

Testamentary Trusts: The Best of Both Worlds

You have several different options when it comes to creating the right estate plan. Some people believe that a revocable living trust is the best way to go, while others think that a last will and testament (commonly known as a will) is best under certain circumstances. Others may find that a combination of both – through the use of a testamentary trust – provides the right amount of control and protection for themselves and their loved ones.

A testamentary trust will own accounts and property owned by you in your sole name without beneficiary designations, upon your death and enables you to instruct how your money and property will be handled in advance. Unlike a revocable living trust, the testamentary trust is created at your death, and ownership of your accounts and property are transferred to the trust through the probate process.  READ MORE

2 Conversations About Money and Death You Need to Have With Your Parents Right Now

If you’ve given any thought about estate planning, you probably associate it with preparing for death. But did you know that there are critical reasons (and significant benefits) for planning while you’re still well and alive? That’s why I refer to my services as Life & Legacy Planning. When done right, planning for your assets and your death is something that should start right now through honest, open conversations with your family.

It starts by talking with your parents, siblings, and children about what you want the future of your family to look like, how you’d like assets managed, and what type of care each family member would want in the event of a debilitating or terminal illness. READ MORE

I’m a Survivor . . . and Now I Have My Own Trust?

Many married couples share almost everything, including finances. This may be reflected in their estate plan by using one joint living trust instead of two separate trusts. Separate trusts can provide greater flexibility, but a joint trust can be structured so that when one spouse passes away, the trust is split into two subtrusts: a survivor’s trust and a decedent’s trust. 

This arrangement provides the surviving spouse with the same versatility that separate trusts offer. The surviving spouse has full control over their survivor’s trust, but may have limited control over the deceased spouse’s accounts and property that make up the decedent’s trust.  READ MORE

Protecting Your Family’s Safety Net: How to Set Up Your Life Insurance Policy The Right Way

Crafting a thorough Life & Legacy Plan involves designing a plan that allows you to fully relish your life while safeguarding your loved ones’ future in your absence. While life insurance is indeed a straightforward method to ensure your loved ones’ security, it’s crucial to structure your policy correctly for optimal impact on your family.

How you choose your beneficiaries for your insurance policy can really affect how well it works, how it gets used, and who gets to manage it once you’re gone. In this blog, we’ll look at the dos and don’ts of naming beneficiaries on your life insurance to make sure your loved ones get the support they need when something happens to you. READ MORE

Celebrating International LEGO Day 

Mark your calendars: January 28 is International LEGO day, which celebrates the date when the patent for the globally famous plastic brick system was filed. 

Since the 1940s, people have been creating their own worlds, brick by brick, with LEGOs. With an estate plan, you can help your loved ones build a great future. Make your estate plan as specific as you want by providing step-by-step instructions for how you want them to honor your legacy. Or give them the resources to bring their vision to life, no strings attached. READ MORE

This Change to The FAFSA Rules Could Help Your Grandkids Qualify for More Student Aid

Interested in supporting your grandchild’s future college education? The recent implementation of the FAFSA Simplification Act allows grandparents to enhance their contributions towards financing their grandchild’s education. This change became effective last month, offering increased opportunities for support.

Previously, any additions or withdrawals from a grandparent’s 529 college savings plan had to be reported on the FAFSA, potentially affecting the student’s eligibility for federal financial aid. Fortunately, the recent changes have ushered in a positive shift. READ MORE

Watch Out for Stolen Items in Your Loved One’s Estate

Your family member went through a meticulous estate planning process to organize and distribute money and property for the benefit of their loved ones, including you. But you may suspect that some of the high-value items in their estate originated as stolen property. The possibility of discovering stolen items within an estate is often overlooked, but it can have legal, financial, and emotional complications. How does it happen?

A New York Times article published in 2023 reported that the New York Metropolitan Museum is carefully combing through its art collections after the government seized dozens of art pieces that were suspected of having been stolen or looted in the past. It is widely known that art collections have mysteriously disappeared over the centuries, especially during wartime, and that ownership should be researched to avoid purchasing an item that belongs to someone else. READ MORE

Your Most Important New Year’s Resolution: A Kids Protection Plan

As we embrace the New Year with optimism and resolutions for a better future, make a top priority for the well-being of your minor children or grandchildren – a Kids Protection Plan. Even if legal guardians are already designated, many people, including lawyers, often make one of six common mistakes in the selection process. If you or your family haven’t named guardians yet, consider making it a New Year’s resolution to do so before the end of the month.

Thinking about a future without being there for your loved ones is tough, but having a plan ensures that the little ones you care about stay with familiar and trusted people if you can’t be there due to incapacity or death. Without taking action, the decisions about their care might be left to chance or a family court judge at the time of any unforeseen events. READ MORE

Do Not Leave Your Trust Unprotected: 6 Ways a Trust Protector Can Help You

Trust protectors are commonly used in the United States. Essentially, a trust protector is someone who serves as an appointed authority over a trust that will be in effect for a long period of time. Trust protectors ensure that trustees maintain the integrity of the trust, make solid distribution and investment decisions, and adapt the trust to changes in law and circumstance.  

Whenever changes occur, as they are bound to do, the trust protector has the power to modify the trust to carry out the trustmaker’s intent. Significantly, the trust protector has the power to act without going to court – a key benefit that saves time and money and honors family privacy.  READ MORE

Hiring a Lawyer: What Flat Fees, Hourly Fees and Retainer Billing Could Mean For Your Life and Family

Finding the right lawyer for legal issues, especially during a crisis, or even when things are calm, can be really confusing. You aim to find a lawyer you connect with, who gets your family’s needs. But you’ve got to think about the lawyer’s fees too and if they can handle your immediate problems and support you in the future.

Different legal needs – be it a tough court battle, a one-time transaction, or ongoing support – can be confusing to navigate. You might have thought about legal insurance or prepaid programs, but while they sound good, they often fall short. READ MORE

3 Examples of When an Irrevocable Trust Can – and Should Be Modified

Despite their name suggesting otherwise, irrevocable trusts can indeed be modified. Changes in laws, family circumstances, trustees, or financial situations can often conflict with the original intent of the trust. In cases of identified errors or evolving situations, it’s prudent to consider alterations to an irrevocable trust to ensure alignment with the trustmaker’s intentions.

Here are three examples of when an irrevocable trust can, and should, be modified or terminated: READ MORE

What Caregivers Need to Know About Estate Planning for a Loved One With Dementia – Part 2

As dementia advances, it’s crucial to take a more proactive and strategic approach to estate planning to prevent potential court disputes over your loved one’s wishes later on. If planning isn’t finalized before dementia progresses significantly, a judge – unfamiliar with your loved one and their preferences – may need to decide who handles their assets and care.

Keep reading to learn what steps need to be considered when estate planning for someone with more advanced dementia. READ MORE

Decanting: How to Fix a Trust That Is Not Getting Better with Age

While many wines get better with age, the same cannot be said for some irrevocable trusts.  Maybe you are the beneficiary of a trust created by your great-grandfather over 70 years ago, and that trust no longer makes sense. Or maybe you created an irrevocable trust over 20 years ago, and it no longer makes sense for your current situation. Wine connoisseurs may wonder if there is any way to fix an irrevocable trust that has turned from a fine wine into vinegar.

You may be surprised to learn that under certain circumstances, the answer is yes – by decanting the old, broken trust into a brand new one. READ MORE

What Caregivers Need to Know About Estate Planning for a Loved One With Dementia – Part 1

Taking care of someone with dementia is tough for many families every year. If you’re looking after them, it’s really important to know how dementia changes their ability to make legal decisions. This helps make sure their wishes are respected and that you’re giving them the best care possible.

In this blog, we’ll explore the importance of estate planning, even after a dementia diagnosis, as the best method to ensure the wishes and rights of your loved one are protected. READ MORE

Should You Share Your Estate Planning Details With Loved Ones?

When you decide to create a comprehensive estate plan, there are many things to consider. One is whether to tell your loved ones about your plan and how much information to share with them. Estate planning can be a complex and sensitive matter, so your choice may depend on your unique relationships with loved ones and your family dynamics. 

Sharing your estate plan with your loved ones can compromise the privacy of your financial and personal information. Some people therefore prefer to keep these matters private, especially when it comes to distributions of significant amounts of money or property. There are both advantages and disadvantages to revealing private information related to your estate plan. You can choose to communicate details relevant to specific individuals or offer a broader explanation to everyone involved. READ MORE