Trusts are a way to protect assets from probate and may be used in estate planning. A common type of trust is a living trust, where assets are legally protected while the owners are alive. Assets may be put in a trust for a child who can access them only after reaching a certain age. Trusts may be revocable or irrevocable.
Trust Helps Save On Inheritance Tax
Setting up a trust for inheritance purposes ensures that assets are divided the way the deceased person wanted. A trust can also help save on inheritance taxes. Upon death, the assets in the trust are divided up among the beneficiaries.
Inherited Property Transferred Out Of Living Trust
When you inherit property, it is inherited at its current market value. An estate will usually pay any federal estate or state taxes owed on inherited property. It may also be beneficial to leave it in the trust.
In Marriage, It’s Critical To Understand Assets Ownership
When you're married it's important to understand who owns what and how property is divided up. Understanding the way assets are owned is even more important if you've got a prenuptial agreement. If you later get a divorce your prenuptial agreement will determine how the court divides assets.
New Website For Helpful Elder Law Advice
I've discovered a great new website with updated information on issues relating to elder law, such as wills, trusts, power of attorney for health care...
MyStateWill.com
I'm often asked who gets what if someone dies "intestate," that is, without a will. If you die without a will, a judge in probate court will decide wh...
Living Trust May Help With Inheritance
A living trust many be the best way to pass on property that you have inherited. If you don't have a trust or will documenting how you want things passed on, the laws of your state will prevail.
Structuring Your Inheritance To Avoid Conflict
Designating children as beneficiaries to brokerage and bank accounts can lead to difficulties. Minor children can't inherit cash. You need to have the cash and financial assets in a trust with a trustee (and backup trustee) named until they become of legal age, or until you feel they are old enough to manage these resources appropriately. Leaving real estate to children can be tricky. It's expensive to own and maintain -- and they may not have enough income to keep the property going and they may not be living anywhere near the actual property.
And You Think You’re Having a Bad Day
Carol called the show today to ask my advice about cash from a 401(k) that she would be receiving in her divorce settlement. As the conversation progr...
Paying Expenses After A Spouse’s Death
When your spouse dies with credit card debt, is it your responsibility to pay it off? It depends on whether the person who died had an estate with money to pay off the credit cards. If the deceased did not have an estate to pay off the debt it may fall to the spouse, depending on whose name was on the credit cards.
Estate Planning Can Prevent Future Confusion
When you lose your spouse and your spouse did not have a will it may make transferring assets such as a home confusing. Estates without a will have to go through probate, which can take some time. Learn how to clear up the ownership of a home and provide your children with clear legal ownership if something should happen to you.