When you establish a Trust, you name someone to be the Trustee. Generally, you are the Initial Trustee for your Revocable Living Trust. A Successor Trustee steps in your shoes in the event of your incapacity and at your death. That person does what you do right now with your financial affairs – collect income, pay bills and taxes, save and invest for the future, buy and sell assets, provide for your loved ones, keep accurate records, and generally keep things organized and in good order. READ MORE
Rewarding Your Employees By Giving Them the Business
Retiring from your business can a tough decision. To ensure that what you have built continues on, there needs to be a plan for succession. For some people, they have spent years grooming a child or other family member to take over, wanting the business to stay in the family. Others look to sell to a third party for a quick way out that will also give them a nest egg for their next phase of life. However, there is a third option–transferring the business to your employees. READ MORE
Cryptocurrency and Estate Planning: What You Need to Know
One of the biggest appeals of cryptocurrency, like Bitcoin, is that it is decentralized, unregulated, and anonymous. There are no financial institutions controlling it, and unless you tell someone you own digital currency, it remains a secret.
When it comes to estate planning, however, that kind of secrecy can be disastrous. In fact, without the appropriate planning protections in place, all of your crypto wealth will disappear the moment you die or become incapacitated, leaving your family with absolutely no way to recover it. READ MORE
Should your child’s guardian and trustee be the same person?
When it comes to estate planning, who will be ultimately in charge of your minor child is an important decision that requires consideration of many factors. READ MORE
The Ins and Outs of Collecting Life Insurance Policy Proceeds
Unlike many estate assets, if you’re looking to collect the proceeds of a life insurance policy, the process is fairly simple provided you’re named as the beneficiary. That said, following a loved one’s death, the whole world can feel like it’s falling apart, and it’s helpful to know exactly what steps need to be taken to access the insurance funds as quickly and easily as possible during this trying time. READ MORE
Passing Along a Benefit, Not a Burden
Most business owners have their estate planning prepared because they are worried about what will happen to their business after they are dead. However, proper estate planning has the added benefit of allowing you to make plans for what will happen if you are incapacitated or needing to be away from your business for an extended period of time. READ MORE
Before Agreeing to Serve as Trustee, Carefully Consider the Duties and Obligations Involved—Part 2
Being asked to serve as trustee can be a huge honor—but it’s also a major responsibility. Indeed, the job entails a wide array of complex duties, and trustees are both ethically and legally required to effectively execute those functions or face significant liability.
To this end, you should thoroughly understand exactly what your role as trustee requires before agreeing to accept the position. Last week, I highlighted three of a trustee’s primary functions, and here I continue with that list, starting with one of the most labor-intensive of all duties—managing and accounting for a trust’s assets. READ MORE
Before Agreeing to Serve as Trustee, Carefully Consider the Duties and Obligations Involved—Part 1
If a friend or family member has asked you to serve as trustee for their trust upon their death, you should feel honored—this means they consider you among the most honest, reliable, and responsible people they know.
However, being a trustee is not only a great honor, it’s also a major responsibility. The job can entail a wide array of complex duties, and you’re both ethically and legally required to effectively execute those functions or face significant liability. Given this, agreeing to serve as trustee is a decision that shouldn’t be made lightly, and you should thoroughly understand exactly what the role requires before giving your answer. READ MORE
Retirement Planning for Business Owners
When you are the owner of a business, planning for retirement requires proactivity and strategy. It’s not just the dizzying array of choices for retirement accounts, there’s also planning for the business itself. Who will run the business after your retirement? Additionally, your estate plan must integrate into your retirement and business transition strategy. READ MORE
Declare your Independence from Court Interference!
While our great nation celebrated its independence yesterday on July 4th, you can rest assured that you too can declare independence for your family — from court interference. Life can be unpredictable. Whether it is a financial issue, the birth or adoption of a child, sickness or incapacity, it is important to be prepared with proper estate planning. In fact, failure to put together a comprehensive estate plan can leave you and your loved ones at the mercy of the court when it comes to distributing assets or caring for a minor or sick family member. READ MORE
Create a Special Needs Trust to Protect the Financial Future of Your Child with Special Needs
It always surprises me to hear parents who have a child with special needs tell me that they were not aware of what they needed to do to ensure the future well-being and care of their child is properly handled. Or sometimes, they tell me they didn’t know they needed to do anything at all.
If that’s you, and you have a child with special needs at home, this article is for you. And if you have friends or family who have a child with special needs, please share this article with them.
Every parent who has a child with special needs must understand what’s needed to provide for the emotional, physical, and financial needs of their child, if and when something happens to them. READ MORE
I Don’t Have Kids, So Why Do I Need Estate Planning? Part 2
Estate planning isn’t just about passing on your assets when you die. In fact, some of the most critical parts of planning have nothing to do with your money at all, but are aimed at protecting you while you’re still very much alive.
Even if, or maybe especially if, you don’t have kids, you need to do estate planning in order to name health care decisions-makers for yourself and provide instructions on how you want decisions made.
As with health-care decisions, if you become incapacitated and haven’t legally named someone to handle your finances while you’re unable to do so, the court will pick someone for you. The way to avoid this is by naming someone you trust to hold power of attorney for you in the event of your incapacity. READ MORE
I Don’t Have Kids, So Why Do I Need Estate Planning? Part 1
It’s a common misconception to think that if you don’t have children, you don’t need to worry about estate planning. But the fact is, it can be even MORE important to do estate planning if you have no children.
Thinking that you do not need estate planning ignores several basic facts about both estate planning and life in general. Regardless of your marital status, if you don’t have children, you face potential estate-planning complications which those with children do not. And this is true whether you’re wealthy or have very limited assets.
Without proper estate planning, you’re not only jeopardizing your personal property, but you’re putting your life at risk, too. And that’s not even mentioning the potential conflict and expense you’re leaving for your surviving family and friends to deal with. READ MORE
Joint Tenancy Pitfalls: The ‘Simple’ Fix that Can Leave Your Family Broke
There are many ways to own your assets. When you die, it is only natural that you want your family to share in the bounty of your hard work. As a way to simplify the transfer process and avoid probate, you may be tempted to add a child or other relative to the deed or bank account utilizing the ownership type of joint tenancy with right of survivorship (JTwROS). However, while this type of ownership delivers a lot of potential benefits, it may also be masking some dangerous pitfalls.
Under JTwROS, when one owner dies, the other owner(s) inherit the deceased owner’s share of the property proportionately.Take note that the words “with right of survivorship” do not need to be explicitly spelled out because the survivorship right is automatic with joint tenancy, unlike other forms of ownership types, such as tenants in common. With JTwROS, its benefits are specific: ownership is transferred automatically without entering probate. Because the property is transferred outside of probate, it is possible to keep this inheritance out of the clutches of creditors of your estate. On the surface, this seems like a smart way to streamline the inheritance process, sidestep creditor baggage, and bureaucratic charges. But the risks may outweigh the benefits. READ MORE
6 Steps to Select and Name the Right Guardians for Your Children—Part 2
Selecting and naming the right guardians for minor children in the event that something happens to you is a critical component of your estate plan. Last week I’ve outlined some basic steps to select and name a legal guardian in Part One of this two part series. Regardless of whether you own any other assets or wealth, it’s vital to complete this process immediately, so you know that who you care about most—your kids—will be cared for the way you want, no matter what. While it’s rare for something to happen to both parents of a minor child, it does occur, and the consequences are simply too severe to not take a few simple steps to select and legally name guardians the right way. Even if you don’t have any minor children at home, please consider sharing this article with any friends or family who do—it’s that important! READ MORE