The Top 10 Things to Know About Estate Planning
Many people are often confused by Estate Planning. Here is a list of the top things to know about Estate Planning.
How to Leave a Mess to Your Heirs
This article examines several common mistakes that create a mess for heirs: Lifetime Transactions without counsel (such as adding people on title to realty), Failure to Plan, and Failure to Communicate. The article poses the problem and then offers a solution to each.
Give Undue Influence Due Consideration
It is natural for people who have a close relationship to want to benefit each other. However, sometimes, people can try to use a close relationship to try to take advantage of the other, more vulnerable person.
Providing for Your Children in Your Revocable Living Trust: Don't Overlook Special Needs Planning
If you're a parent who has taken the time and energy to create a Revocable Living Trust ("RLT") you should be commended for your initiative and perseverance for ensuring your children and grandchildren are properly cared for when you are gone. If you have not yet created an estate plan, doing so could be one of the most important actions you can take on behalf of your children's future well being. A properly drafted estate plan designates who will care for your minor children upon your death, as well as providing for the smooth transfer of wealth to your children. Many parents assume that making sure a child is financially secure after they are gone means leaving the assets outright to the children. For many reasons, such as a child's inability to manage finances, outright distribution of your assets to your children may not be the most prudent option. This becomes especially true if any of the beneficiaries of your trust estate have, or develop in the future, special needs and require the assistance of government aid.
"Special Needs Trust" Needs Special Trustee
When children face a lifetime of significant medical expense, parents often turn to a "special needs trust." The beneficiary is usually eligible for Medicaid benefits, or soon will be. The goal of a special needs trust is to provide a source of money to benefit a child without jeopardizing this eligibility.
With a Charitable Remainder Trust, Charity Begins at Home
Americans are some of the most generous givers on the face of the planet. We claimed $74.5 billion in charitable deduction in 1995, according to a recent report from the Internal Revenue Service. Tax advantages for charitable donations provide a tangible incentive to fund worthy causes. According to a recent study by the Washington, D.C.-based organization Independent Sector, donations are more likely to occur when a tax break is available to the donor. More than 80 percent of those who itemize their tax returns contribute to charities, according to a recently released Price Waterhouse study of 1995 IRS data.
Special Children Require Special Estate Plans
Raising and caring for children is a lifetime commitment. Parents of a child with special needs (disabled, mentally retarded) have a much bigger responsibility both during their lives and after they're gone. They need to plan their estates properly to ensure their child remains well-cared for and is still eligible for government and private aid. This article addresses these important issues.
Use with Care: The Tax Savings of NIMCRUTs
Charitable giving strategies fit right in with an effective estate plan. When used properly, net income make up charitable remainder unitrusts (NIMCRUTs) can offer tax savings and future income. This article warns against improper deferred income strategies but states that NIMCRUTs can still be used effectively.
