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.
Homestead Exemptions Within A Living Trust
A living trust is a document that creates a separate entity to hold all of your assets. The trust holds the assets, which are managed by you as the sole trustee until you die. Upon your death, the assets are still in the trust and a new trustee can managet the assets and can even sell them.
Estate Planning: Trust May Be Better Than Quit Claim Deed
When an elderly parent wants to pass along a property to a child, a trust may be the better choice in order to avoid probate and an increased cost basis. Some families think about using a quit claim deed, which allows the owner to sign over all ownership and financial interests in a property. Using a quit claim deed means the recipient receives the property at the original cost basis which could lead to high capital gains taxes upon sale.
Things To Consider When Drafting Last Will And Testament
Writing a will - documenting your last will and testament - is an important part of estate planning. When you write a will, you ensure that your funds, property and personal effects will be distributed after your death according to your wishes. It's important to think carefully of all possible scenarios when estate planning to avoid a legal mess.
Paying For Vacation Home Repairs
What should you do if you have property, like a vacation home that is in need of major repairs but your trust has no money to pay for them? One option for taking care of the vacation home could be taking out a home equity loan to repair the vacation home. A option that wouldn't be allowed for a vacation home is taking out a reverse mortgage because the home must be someone's primary residence. If no money can be procured for repairs, a decision to sell the vacation home may have to be made.
Adding Minor To House Title
A family wants to add their daughter, a minor, to the title of their home. Because she is a minor, the daughter cannot own the home directly, but can own a piece of it through a trust, which can be set up through careful estate planning. A custodial account could be set up for the daughter as part of the family's estate planning.
1031 Exchange: IRS Rules For Investment Property Purchase
A father wonders if he can do a 1031 exchange and rent back the newly purchased investment property to his struggling son. Sam discusses the details of the 1031 exchange commonly known as Starker trusts, the IRS rules behind them and how they apply to investment property. One key point: a good real estate attorney will help you navigate the IRS tax rules about a 1031 exchange and how it applies to investment property.
How To Find Estate Planning Attorney
To protect yourself and your family it's critical to do estate planning with the help of an attorney. Learn what's included in a comprehensive estate plan and how you can find an estate planning attorney, especially if you live in Chicago. Estate planning includes not only a will but also powers of attorney and a living will.
Basic Financial Accounts For A Successful Financial Life, Alberto Azpe
Interview with Alberto Azpe, President of Hispanic Banking, Harris Bank about the basic accounts you need to have a successful financial life.
How To Hold Title To Your Home
Before you buy your home, you should think about how to protect it. Purchasing adequate homeowner's insurance is one way to protect your home, but you should also think about how you're going to hold title to your new home.