Living trusts are becoming an increasingly popular addition to estate plans. Living trusts are attractive because they allow you to avoid probate – the court supervised process by which estates are administered. With a living trust, assets are transferred directly to the beneficiaries named in the trust, and the trust simply ceases to exist once all assets have been distributed.

A trusts can be used for asset protection, but it must be the right type of trust. A living trust may not shield your assets because it is revocable. That is, you can change the terms at any time. Courts have held that since you have access to your revocable trust, creditors should be able to have access, too.

A Family Limited Partnership, as its name implies, is an arrangement where a family forms a limited partnership to hold family businesses and investments. In this arrangement, parents can make “gifts” of partnership interests to their children. The benefits of a Family Limited Partnership include asset protection and discounts for estate and gift taxes.

One of the important things to remember about your estate plan is that most of the documents contained within it, like your Will, can be amended to reflect changing circumstances. Many people think that they need to put off estate planning until marriage, or having children or some other major life-changing event because they do…

The recovery plan enacted last December contains a new rule about the eligibility of non-spousal heirs to receive 401K benefits. Previously, children, siblings and other family members were subject to rules that forced them to cash out, and pay taxes on, an inherited 401K plan within 1-5 years – a rule than never applied to…

Too many people assume that they are on the same page with other members of their family when it comes to estate planning and planning for the care of minor children or children with special needs. However, this is not always the case. One of the first things a family should do when preparing an…

Establishing an estate plan is just the first step in preparing for your future care and the future care of your loved ones. If you have chosen to set up a trust for tax and probate purposes, it is important to stick to a regular schedule of funding your trust. Funding your trust is the…

People who leave a large sum of money to a loved one with a disability are always doing so with the best intention at heart. On its face, a lump sum in the tens or hundreds of thousands of dollars seems like a gift that will help care for your loved one for a long time. However, this is not always the case.

Although it may seem difficult, estate planning is most important during a recession. Sticking to an estate plan will help you maximize the benefits of your assets and property in both the short and long term, and will allow you to minimize any damage that may be done to your long term plans.

One of the first steps in the process of creating a comprehensive estate plan is to outline your plans for yourself and the transfer of your assets as well as your plans for the future care of your loved ones. In this regard, your estate plan should be developed in accordance with wishes and goals…