Estate Planning
May 17, 2023 If someone leaves you money in their will but you don’t want to wait until probate ends to claim it, you might consider getting an inheritance advance. An advance against an inheritance allows you to collect money that’s set to come to you in exchange for a fee. How much does an inheritance advance cost? The amount you’ll pay to access an inheritance early can depend on which advance company you’re working with. Talking to your financial advisor can help you decide if taking an advance against your inheritance makes sense. Read More...
May 11, 2023 When someone passes away, it’s up to their executor to handle the probate process. But what happens if the executor of a will dies? While that’s a rarity, it can create complications as someone else will need to fill the executor role. Naming a successor executor is one way to avoid that scenario and other contingencies that might affect the settlement of an estate. Talking to a financial advisor can be helpful for planning ahead for any obstacles that may arise during probate. Read More...
May 11, 2023 Taking an inheritance advance is something you might consider if you expect to receive money from an estate, but don’t want to wait for probate to conclude. An inheritance advance, also called a probate advance or probate cash advance, allows you to receive a lump sum of money upfront. In exchange, you agree to allow the advance company to purchase part of the inheritance. An inheritance advance can put money in your hands quickly, but there are some drawbacks to keep in mind. We will go over the details. Talking to your financial advisor can help you create a plan for managing an inheritance. Read More...
May 10, 2023 If you’re expecting an inheritance, you may be wondering how long it will take to receive it. You might consider a probate loan if you need funds sooner rather than later. A probate loan, also referred to as an estate loan, allows you to borrow money against a future inheritance. Probate loans can allow you to access money that may be coming to you following the death of a loved one sooner, but there are some potential disadvantages to keep in mind. You can also talk to a financial advisor about how to handle an inheritance. Read More...
May 05, 2023 Wills are an essential part of estate planning, leaving instructions for how to distribute your assets and possessions after you die. Trusts are a common tool in estate planning as well, serving as a way to manage assets both before and after your death. If your will conflicts with a trust that you have set up, the trust will typically prevail. This is because, in most cases, the assets in a trust don’t technically belong to your estate any longer. They are legally owned by the trust itself, so the terms of your will don’t affect them. For help with estate planning, consider working with a financial advisor. Read More...
Apr 25, 2023 An irrevocable funeral trust is a way of setting money aside to pay for your funeral and burial expenses. While an irrevocable funeral trust can help your loved ones pay for potentially expensive end-of-life costs, it locks up your money for good and cannot be amended. A financial advisor with estate planning expertise can help guide you through the often complicated estate planning process. Read More...
Apr 21, 2023 Bills for utilities, mortgages, auto loans and similar expenses usually arrive monthly, while many investments generate income only quarterly, annually or even less often. However, there are a number of assets that pay income on a monthly basis. Options include savings accounts, certificates of deposit, annuities, bonds, dividend stocks, rental real estate and more. Here are eight of the best investment options for monthly income. A financial advisor can help you build a portfolio of income-generating investments. Read More...
Apr 20, 2023 Trusts can be a useful estate planning tool for passing on wealth to heirs. When naming beneficiaries, it’s important to consider how their spouses may fit into the picture. Specifically, you may wonder how to protect trust assets from a beneficiary’s divorce should the marriage end. There are some measures you can take to make a trust "divorce-proof." Talking to your financial advisor can help you evaluate your options. Read More...
Apr 20, 2023 Parents in second marriages may want to leave assets to their own children while ensuring that stepchildren do not inherit. When stepchildren inherit, it can create resentment leading to legal disputes that can cost the estate significantly in delay and attorney fees. By taking specific estate planning steps, however, you can effectively protect assets from stepchildren. A financial advisor can inform you about your options when planning an estate involving stepchildren. Read More...
Apr 20, 2023 Like most assets, you can inherit an individual retirement account (IRA) after the owner’s death. And for spouses, inheriting an IRA is a relatively straightforward process. In most cases, you can simply assume ownership or even roll the inherited account over into your own IRA. In the case of siblings, if you have inherited a parent’s IRA, you have several options. Most notably, you can either withdraw the full value upfront or transfer the account into what is called an “inherited IRA.” And how you share this money is at your discretion. Here’s how it works. If you have questions surrounding the specifics of your inheritance, consider speaking with a financial advisor. Read More...
Apr 20, 2023 Many retirees go to nursing homes as their needs increase, creating a dilemma for protecting their wealth. A revocable trust places your wealth in a tax-protected vehicle you can control until you die. But, unfortunately, it won’t protect assets from a nursing home. However, there are ways to protect your assets from a nursing home or similar facility. Here’s what you can do instead to ensure your money goes to your loved ones. A financial advisor can help you with living trusts and other estate planning issues, ensuring they line up with your overall financial plan. Read More...
Apr 20, 2023 There are a lot of aspects of estate planning that can make it feel daunting. To protect your beneficiaries from creditors, you should consider establishing a domestic asset protection trust or DAPT. Here define DAPTs, talk about how they work and cover which states allow them. If you're trying to determine what type of trust you may or may not need for your personal situation, consider working with a financial advisor. Read More...
Apr 19, 2023 An estate plan is important for anyone who wants their wishes to be carried out after they are gone. Without a legally enforceable estate plan in place, you run the risk of having a judge interpret state laws to decide matters such as how your possessions, property and assets will be distributed and who will raise your minor children. In addition to allowing you to direct the wrap-up of your affairs after you are gone, having an estate plan can also reduce taxes, speed up the process of settling your estate and reduce conflict among your survivors. A financial advisor can help you with your estate plan. Read More...
Apr 14, 2023 Gentreo is an online estate planning tool that lets people create wills and other estate planning documents without the help of an attorney. Gentreo’s $100 fee plus $50 recurring subscription costs are much less than an attorney will charge. Yet you can prepare, in addition to a last will and testament, documents establishing a revocable living trust, power of attorney, healthcare proxy and additional documents to provide for and protect pets. If you have additional questions about estate planning, a financial advisor can help. Read More...
Apr 14, 2023 For almost all households creating a will is a straightforward, if unpleasant, task. Many individuals will simply have some cash, investments and (often) a home to disperse. And they have a relatively small number of friends and relatives they can leave that to. Dividing that property up is typically uncomplicated. But it is important to make sure you follow state and local laws. That’s where services such as U.S. Legal Wills come in. We'll discuss how it works. While it’s possible to create a will on your own, estate planning is a complex endeavor. Talk to a financial advisor today. Read More...
Apr 12, 2023 Inheriting a house with siblings can raise some questions about what it means for each of you financially. For example, will one of you live in the home and buy out the others? Or will you sell it and split the proceeds equally? Here are some options for handling this situation and possible responses to any differences of opinion that may emerge. Talking to a financial advisor or estate planning attorney can help to untangle some of the sticky issues that can arise when a home is left to multiple people. Read More...
Apr 11, 2023 Epic Will is an online company that allows you to draft wills and other legal documents online in minutes, with minimal fees. There are will packages for individuals and married couples and all wills are drafted according to state-specific laws. Epic Will could be a good option for anyone who’s seeking an affordable way to create a will, advance healthcare directive or power of attorney online. Of course, it's also a wise idea to talk to a financial advisor to get estate planning help. Read More...
Mar 31, 2023 A trustee is responsible for managing the assets held in the trust on behalf of its beneficiaries. If you’re the beneficiary of a trust, you may find it necessary to remove the trustee if you believe that they’ve committed a breach of fiduciary duty or are otherwise mismanaging assets. But how much does it cost to remove a trustee? There is no single answer, as court costs and legal fees can vary based on the circumstances. If you need to get your estate sorted, a financial advisor can help. Read More...
Mar 30, 2023 Gift tax can apply when you give money or other assets to someone else. As the gift-giver, you’re responsible for paying any tax due. The IRS allows you to make financial gifts up to a certain exclusion limit each year before the tax kicks in. Gift-splitting rules allow married couples to combine their exclusion limit in order to make larger tax-free gifts. If you’re interested in taking advantage of this tax benefit, there are a few rules to know. You may want to work with a financial advisor who can help you plan out your estate and better understand how the gift tax might impact your situation. Read More...
Mar 23, 2023 Estate taxes are a form of transfer tax that affects the very wealthy. For multimillionaire households, avoiding the estate tax is a significant issue. One tool that households can use to try to minimize their estate tax liability is the trust. However, it’s important to understand that this is a limited, and fairly specific, tool. Here’s what you need to know. For help with your estate plan, consider working with a financial advisor. Read More...
Mar 23, 2023 Creating a trust as part of your estate plan is something you might consider if you’d like to ensure that your assets will be managed according to your wishes after you’re gone. When you establish a trust, you’ll need to name a trustee to manage assets and one or more beneficiaries who can receive them. Can a trustee remove a beneficiary from a trust? Generally speaking, no, but there are other scenarios when a beneficiary can be removed. For help with your estate plan, consider talking to a financial advisor who has estate planning expertise. Read More...
Mar 22, 2023 Establishing a trust or will is vital to a well-designed estate plan; you might even use both. However, even the best estate plans can’t anticipate changes in the future or head off new tax legislation. Fortunately, a power of appointment can help your beneficiary take control of your estate to minimize taxes and keep the property from falling into the wrong hands. Here’s how it works. Consider working with a financial advisor if you need help setting up an estate plan or managing inherited money. Read More...
Mar 13, 2023 There is no Florida estate tax, though you may still be subject to the federal estate tax. It’s one of 38 states in the country that doesn’t levy a tax on estates, regardless of size. If you’re concerned about estate planning, or any other financial planning concerns, you may want to consider getting professional help from a financial advisor. SmartAsset’s free financial advisor matching tool can help you find options in your area. Read More...
Mar 10, 2023 When someone dies, others may be called on to manage their estate. An executor is charged with overseeing the distribution of someone’s assets according to the will or state inheritance laws if they die without a will. The deceased person’s beneficiaries, meanwhile, get to receive assets from the estate. In terms of executor vs. beneficiary rights, there are several differences with regard to what type of authority each one has. A financial advisor with estate planning expertise can help you make a plan for distributing your assets to family, friends and other beneficiaries. Read More...
Mar 01, 2023 Establishing a trust as part of your financial plan is something you might consider if you have extensive assets or simply want a measure of control over how those assets are managed after you’re gone. When creating a trust, there are two important elements to include: a trustee and one or more beneficiaries. Whether someone is a beneficiary vs. trustee can determine what rights and responsibilities they have with regard to trust assets. If you need help navigating the process of creating a trust, consider working with a professional financial advisor. Read More...
May 27, 2023 FBO is an abbreviation for the common term "for the benefit of" and it is often used in estate planning. In a trust, the term conveys ownership and value to the trustee. The FBO legal language is there to protect the rights of the beneficiary of the trust. If you desire to leave your estate to one of your children, but you have a large extended family, including the FBO trust language may stop family squabbles when the proceeds of the trust are being distributed. If you have questions about what FBO means, it may be smart to talk to a financial advisor. Try using SmartAsset's free advisor matching tool today to find a financial advisor. Read More...
May 29, 2023 A declaration of trust is the document that establishes a legal trust. It also defines the major elements of the entity, such as the beneficiaries and trustees. Once a trust has been established, a declaration of trust can also be used in some circumstances to redefine the elements of the trust. Like all property law, the details regarding declarations of trust are highly state specific. However most (if not all) states share the following broad outline. Use SmartAsset's free tool to quickly find a financial advisor in your area who will help you with estate planning. Read More...
Feb 09, 2023 The recession, inflation and COVID-19 have made a bad situation worse. Financial dependency now has aging parents living with their adult children and their adult children footing the bill for their parent’s ill-planned retirement. All while also trying to raise kids, buy a house, pay off student loans and save for their own retirement. The result? A continuous cycle of financial dependency based on generational enablement. Below we’ll look at what is called the “sandwich generation,” how financial burdens from parents and children put strain on this cohort and how a financial advisor can help you break the cycle. Read More...
Feb 09, 2023 A revocable living trust can help you protect privacy, avoid probate and protects you in case of incapacitation. But you will also have some limitations. That's because revocable living trusts can be expensive, and they don’t have direct tax benefits. Here are the pros and cons of a revocable living trust and how you can carefully weigh them before setting one up. SmartAsset: A financial advisor can help you with living trusts and other estate planning issues, ensuring they line up with your overall financial plan. Read More...
May 06, 2023 A will is a basic tool of estate planning that tells your survivors what you want to be done with your possessions. Wills are legal documents and many are drafted by attorneys, but it is possible to make a will without a lawyer. Options for making a will without an attorney include writing your own from scratch, filling out a template, using will-writing software and using online will-creation tools. Making your own will without an attorney can save on legal fees but at the risk of making an error that could cause additional cost and complexity in the job of eventually settling your estate. If you’re not sure how to approach estate planning, a financial advisor can help. Read More...
Mar 31, 2023 A springing power of attorney takes effect (or “springs”) after you have been incapacitated or are otherwise unable to act on your own behalf. Until then it has no effect, meaning that you can assign someone power of attorney in case you need someone to make decisions for you. It is a planning tool that people chiefly use to prepare for a medical crisis or aging. Here’s how it works. Consider working with a financial advisor as you do your estate planning. Read More...
Feb 02, 2023 Probate is the process of proving a will and settling an estate after an individual (decedent) dies. The cost of probate depends on several factors. One of the most significant is the state in which the decedent lived. The cost of probate varies from state to state depending on the general cost of living in the state and state probate laws. Other factors also affect the cost of probate. Here is a breakdown of fees associated with probate and tips on minimizing those fees. It is sometimes possible to avoid probate and its high costs altogether. A financial planner can help you develop an estate plan that minimizes the costs of probate. Read More...
Feb 01, 2023 If a trust is part of your estate plan, your assets will need to be transferred into it at some point. Most of the time, this is a fairly simple process that requires nothing more than listing the assets as part of the trust. However, transferring real estate property into a trust is more complicated. A new deed has to be issued and filed, insurers must be notified and, sometimes, permission must be obtained from the lender. Failure to properly transfer real property like a person’s home into a trust means your estate will have to go through probate after your death, likely adding considerable time and expenses to the process of settling your estate. Talk to a financial advisor about your plans for your estate. Read More...
Feb 01, 2023 If you're buying an investment property, it may make sense to buy it using a limited liability corporation (LLC). While there are certain hurdles you'll have to clear, buying a house with an LLC can have many legal and financial benefits. Here's how to buy a house with an LLC, as well as what to know before doing it. You can work directly with a financial advisor to help you choose the best tax route for your business that will have a positive impact on your personal taxes. Read More...
Mar 31, 2023 Sharing ownership of a property with another person (or persons) can be legally established in a number of different ways. One possible legal arrangement is through tenancy in common, which allows you to own a portion of a property with someone else while retaining certain survivorship and liability protections. Here’s a look at what tenancy in common offers, who it’s designed for and what to keep in mind along the way. Consider working with a financial advisor as you assess your options for sharing ownership. Read More...
Jan 31, 2023 If you include a revocable living trust as part of your estate and then decide to relocate to another state, your trust should remain valid. And although its validity won’t be affected, differing state laws regarding such matters as marital property may mean you’ll want to make some changes. If your move is buying a new home, it will be necessary to transfer this asset to the trust. We'll provide a rundown on how it works. Talk to a financial advisor about the advantages of trusts for estate planning. Read More...
Jan 31, 2023 If you plan to create a living trust or already have one, you may wonder if you need a living trust lawyer. The short answer is that you don’t. But just because you don’t technically need an attorney to put together your trust doesn’t mean you shouldn’t hire one. Living trusts can be complicated and if you worry about your own ability to create a trust, you may want to hire a living trust lawyer who you can consult with. Living trust lawyers can help your trustee distribute assets after your death, keep your information private and avoid probate. You may also want to work with a financial advisor who can help you create the right estate plan. Read More...
Jan 26, 2023 Some financial products like life insurance or tax-advantaged retirement accounts require you to name one or more beneficiaries. However, that’s not the case with many assets. For instance, you can buy a house or set up a savings account without designating who should receive it when you pass away. While beneficiary designations for specific financial products are necessary, they are not sufficient by themselves for creating a comprehensive estate plan. A financial advisor can help ensure that you have a holistic estate plan. Read More...
Jan 25, 2023 Estate planning matters if you’re hoping to preserve as much of your wealth and assets as possible for future generations. One of the biggest challenges is finding ways to minimize your tax liability, as taxes can shrink the value of the estate you’re able to leave behind. Taking a proactive approach to estate tax planning can protect your financial legacy for the short and long term. A financial advisor can help you create an estate plan to meet your needs. Read More...
Jan 25, 2023 When you’re in the midst of a divorce, you’re probably not thinking about estate planning or your will. But if you’re divorcing, you should think about the impact a divorce can have on an estate plan. Because even if your divorce is amicable, you may want to make some changes to the paperwork. That includes your will and power of attorney. Not getting this part of divorce done correctly can mean long-term repercussions , even after your death. Let's go over the steps you should take with your estate plan during and after your divorce. Ask a financial advisor how to protect your assets against potential loss due to a potential divorce. Read More...
Jan 24, 2023 Estate planning is crucial to leaving your beneficiaries with your possessions as you intend. However, life insurance beneficiaries can conflict with the terms in your will if you aren’t thorough. Your life insurance beneficiary designation usually supersedes your will. So it’s best to have harmony between your policy and will to save your heirs from stress and confusion. You can use both life insurance beneficiaries and wills to impart money to others when you die. They can work with or against each other, so meticulous planning is key. Here's how each works and which takes precedence. A financial advisor can provide valuable guidance as you prepare for probate. Read More...
Jan 20, 2023 If you have a residence you would like to pass onto loved ones after your death, and you're worried about your home going into probate, you may want to put your home in a property trust. If that is something you have been considering, it's a fairly straightforward, if complex, process. We'll go over out how it works. Consider working with a financial advisor if you need help setting up an estate plan or managing inherited money. Read More...
Jan 18, 2023 After a grantor passes away, becoming the trustee can be daunting, especially if you’re responsible for distributing property. Houses are among the most valuable assets in a family for financial and sentimental reasons. Therefore, it’s critical to understand how to transfer property out of a trust to the designated beneficiary. When the trust owner dies, the trustee can transfer property out of the trust by using a quitclaim or grant deed transferring ownership of the property to the beneficiary. Here are details on the process and what to do with the inherited property if you’re the beneficiary. Estate planning is a complex process. Find a financial advisor who can help you today. Read More...
Jan 18, 2023 Adding an annuity to your financial plan is something you might consider if you’re hoping to generate additional streams of income for retirement. Annuities are contracts that allow you to exchange a current premium for future payments. If you’re not well-versed in annuity jargon, you might not understand the difference between being an annuitant and a beneficiary. Breaking down these terms is important when discussing how an annuity works. If you're looking for an expert to help you with similar financial matters, consider working with a financial advisor. Read More...
Jan 18, 2023 Revocable trusts, otherwise known as “living trusts,” do not protect your assets from creditors. In fact, they are subject to collections actions and lawsuits, and they are included when third parties evaluate your personal assets. We'll discuss how it works. Estate planning is a complex process. Find a financial advisor who can help you today. Read More...
Jan 17, 2023 A Medicaid asset protection trust (MAPT) can be useful for estate planning if you believe you or your spouse will need long-term care at some point. Transferring assets to this type of trust can allow you to qualify for Medicaid to pay for long-term care while preserving your savings. If you don’t have a long-term care insurance policy in place, you may consider adding a Medicaid trust to your estate plan. Understanding how this type of trust works can help you decide if it’s right for you. A financial advisor can help you create a comprehensive estate plan that provides for a special-needs spouse after you die. Read More...
Jan 17, 2023 When you die, a section of law known as estate and probate law governs how your assets are distributed. Someone who dies (known as the “decedent”) with a legitimate will has set up what is known as a testate inheritance. This means that their assets are distributed according to the wishes set forth in their will. Someone who dies without a legitimate will has what is known as an intestate estate. This means that their assets are distributed according to the laws of inheritance. Estate planning is best done in close consultation with a financial advisor. Read More...
May 27, 2023 Intellectual property and intangible assets used to be niche fields. For most people, pretty much everything they owned could be held, sorted and doled out by their estate lawyer. Today that’s far less true. From e-mail and social media accounts to websites, photos and the simple contents of a hard drive, almost all of us hold a vast amount of intangible, digital assets. As a result, managing those assets has become an important part of modern estate planning. This is known as “digital estate planning,” and here’s how it works. If you want help with your estate planning then you may want to consider working with a financial advisor. Read More...
Jan 17, 2023 Part of planning for the future involves getting your estate in order, and determining who you want your assets to pass to when you die. If you have real estate property, and want it to transfer to loved ones without passing through probate, a transfer on death (TOD) deed may be the answer. Because a TOD deed, also known as a beneficiary deed, bypasses probate, it can simplify the inheritance process and reduce costs for your loved ones. Read More...
May 27, 2023 An inter-vivos trust or living trust is a legal arrangement that allows a person to transfer ownership of assets to a trust while they are still alive. Inter-vivos trusts distribute property to beneficiaries when a person dies and helps an estate avoid probate. A financial advisor can guide you through the process of creating an inter-vivos trust and address other estate planning needs. Read More...
Jan 17, 2023 If you want to end a trust, the process depends on the nature of the entity. A revocable trust can be ended relatively easily, in just three steps. The trust’s founder and owner can typically dissolve a revocable trust at will. In most cases, this involves nothing more complicated than filling out some paperwork and distributing the trust’s assets. An irrevocable trust is far more complicated, though, so it's important to plan ahead. A financial advisor can help you make sure your trust is set up correctly and that you've protected your assets. Read More...
Jan 12, 2023 Someone who inherits a non-qualified annuity will only have to pay income taxes on any earnings from the annuity when they are withdrawn. Inheriting a qualified annuity, on the other hand, means owing taxes on any withdrawals from the annuity, including principal and interest. The difference stems from the way the two types of annuities are funded. Qualified annuities are funded with pre-tax dollars, while non-qualified annuities are funded with after-tax dollars. This difference affects many aspects of how the two types of annuities can be used for retirement planning. Read More...
May 06, 2023 Power of attorney is one of the most important legal forms for estate and elder care planning. Along with wills and trust documents, it is a critical document for arranging one’s affairs. A power of attorney cannot change a properly written will. However, such a person can make many changes to the assets surrounding that estate. Here is how it works. Estate planning can get complicated, quickly; working with a financial advisor goes a long way to simplifying the challenge. Estate planning can get complicated, but working with a financial advisor is one of the best ways to clarify and even simplify the challenge. Read More...
Jan 12, 2023 If you leave a trust to a loved one, it’s probably because you want to ensure that they are taken care of after you are gone. But that very act may cause you to wonder how long can a trust remain open after somebody has died? The answer is 21 years, which, of course, begs another question – what happens to the trust after 21 years? That gets a little more complicated. So we’ll explain how a trust works and what happens to a trust after 21 years. Consider working with a financial advisor as you weigh the relative merits of trusts and estates. Read More...
Jan 12, 2023 Estate planning can be difficult. In addition to the fact that it may bring up some uncomfortable feelings - like grappling with one’s mortality - there is also the fact that it can be a complex legal process. There are ways to make estate planning easier, though, such as trusts. If you form a trust, there are a few terms you’ll need to know: trustee and executor. These terms are sometimes used interchangeably, but they actually have distinct roles. A trustee manages a trust and the assets inside, while an executor is responsible for fulfilling the deceased’s wishes and distributing property and assets as proscribed. For help with trusts or other estate planning items, consider working with a financial advisor. Read More...
Mar 23, 2023 Life estates can provide effective means to create joint ownership of property, avoid probate and transfer property after death without incurring gift taxes. Parents commonly use them to bequeath a home to children while allowing them to continue living in the home for the duration of their lives. However, should it become desirable to remove someone from a life estate, it can be very difficult unless proper preparations are made in advance. Consider working with a financial advisor for estate planning. Read More...
Mar 20, 2023 When it comes to sharing property with another person, there are a few different forms of legal ownership to choose from. Of these, two common shared estate ownership options include joint tenancy and community property. Though these joint tenancy and community property are very similar in many ways, there are a few important differences to note when it comes to planning your estate and protecting your interests. Let’s take a look at what each entails and which might be better for your specific situation. A financial advisor can offer valuable insight into property ownership arrangements that fit your goals, risk profile and timeline. Read More...
Jan 11, 2023 One of the most useful estate planning tools is a trust, which can be used to create a legacy of wealth and protecting assets. One question to consider when creating one is whether a grantor or non grantor trust is more appropriate. A non grantor trust is any trust that is not a grantor trust. That distinction may seem simplistic but it matters from a tax perspective when shaping an estate plan. Understanding the difference between the two is important when deciding which type of trust to form. Read More...
Jan 11, 2023 Charitable trusts and foundations can be used to both secure personal, family or business assets and enable philanthropic endeavors. Each one provides assets, such as securities, with protection from lawsuits and other claims. Trusts and foundations also can offer significant tax benefits as well as privacy. Charitable trusts are easier to set up and provide more privacy. Foundations are incorporated as separate legal entities. Many well-known charitable organizations are set up as foundations or charitable trusts. Here's an overview of each one and how they compare. Read More...
May 29, 2023 Creating a trust as part of an estate plan can help protect assets and ensure your financial legacy is preserved. If you’re married, you may consider establishing a QTIP trust, which is short for qualified terminable interest property trust. This type of trust allows the grantor to set aside assets for a surviving spouse while still having control over what happens to those assets once they pass away. A QTIP trust can offer financial reassurance if you’re concerned about what would happen to your spouse after you’re gone. Estate planning can be complicated; make sure you're making the best decisions by working with a financial advisor. Read More...
Jan 11, 2023 When trusts are used as estate planning tools, financial institutions such as banks and brokerages may require written documentation of the trust’s existence before transferring assets into a trust or naming it as a beneficiary. However, they don’t need to see all the details of the trust, such as identities of the beneficiaries. When financial institutions need trust documentation, a signed and notarized certificate of trust can fulfill this requirement while keeping other information about the trust private. Read More...
Jan 11, 2023 Receiving an inheritance could provide an unexpected (or anticipated) financial windfall. There’s just one thing you may have to contend with - people attempting to steal what you’ve inherited. Inheritance theft is sometimes a very real problem for people who inherit money, property or other assets. Inheritance theft laws exist to protect heirs and beneficiaries. If you’re set to receive an inheritance or have received one that was stolen from you, it’s important to understand what legal rights you may have for getting those assets back. A financial advisor can help you with estate planning to minimize conflicts after your death. Read More...
Jan 10, 2023 When a person uses a will to leave property to their family, friends or the causes they support, the act is known as a bequest. A bequest can be the cash, investments, jewelry or other items that a person passes to beneficiaries when they die. When planning your estate and creating a will, a financial advisor with estate planning expertise can be a valuable and useful partner in the process. Below, we'll review how bequests work and how they differ from a gift. Read More...
Jan 10, 2023 When a spouse dies, the surviving spouse typically inherits all of the deceased spouse's assets. However, this may not be the best approach based on the size of your estate or your tax situation. By using a disclaimer trust, the surviving spouse can disclaim the assets and move them into a trust to avoid taxes on those assets. Working with a financial advisor will help ensure that you're making wise choices as you create an estate plan. Read More...
Jan 10, 2023 When you create an irrevocable trust, usually, the terms are set in stone. But what happens when you need to make adjustments due to significant life, law or personal changes? For example, let’s say your trustee is diagnosed with a life-threatening illness and you need to name a successor trustee. In the past, you might not have been able to make these changes to your trust. However, decanting a trust to amend your irrevocable trust is an option if you understand how it works. It can be beneficial to work with a financial advisor before making any big decisions that could impact your finances. Read More...
Jan 17, 2023 If someone close to you has died, the last thing you may want to talk about is money. However, in order to honor their final wishes, you’ll need to follow their will (if they left one) or potentially go to probate court. You may be left with a large cash inheritance when all is said and done. But, how do you deposit a large cash inheritance, and is there anything you should know before doing so? A financial advisor can help you put an estate plan together to protect your assets for your family. Read More...
May 29, 2023 One of the most important aspects of estate planning is choosing who you’d like to be your beneficiaries. A beneficiary is someone who is named to receive a financial gift from an estate or a specific asset, such as a life insurance policy. If you want to leave all of your assets to one person in your will, you might name them as your sole beneficiary. There are, however, some pros and cons to doing so. You may want to consider working with a financial advisor who can help answer your questions and properly set up your estate to match your desires. Read More...
May 29, 2023 When someone passes away, whether unexpectedly or not, it can raise questions about who will inherit what. Specifically, you might be wondering whether in-laws have a right to any of the assets of the deceased person. The short answer is that state inheritance laws prioritize spouses, children and other blood relatives ahead of in-laws. However, the way those individuals choose to handle their share of an inherited estate can determine whether an in-law receives assets from it. A financial advisor can help you create an estate plan for your needs and goals. Read More...
Dec 20, 2022 Online tools allowing anyone to create a trust without the help of an attorney can reduce the money and time consumed in estate planning. Living trusts are widely used in estate planning to avoid probate and reduce costs and delay in settling estates, but an attorney may charge thousands of dollars to create one. Online trust creation tools may cost a few hundred dollars or, in some cases, nothing at all and take only a few minutes to use. A financial advisor can help you create an estate plan for your family's needs and goals. Read More...
Dec 20, 2022 A secondary beneficiary, also called a contingent beneficiary, is a person or entity entitled to get a distribution of assets from an estate or trust after the estate owner’s death if the primary beneficiary is unable or unwilling to accept the assets. Secondary beneficiaries can be relatives or other people as well as trusts, charities or other organizations. Naming secondary beneficiaries can help estate planners avoid the delay and costs of going through probate as well as ensure that your wishes are carried out. A financial advisor can help you decide whether you need a secondary beneficiary for your estate or trust. Read More...
Dec 19, 2022 Considering your eventual death and planning who will inherit your assets can be a difficult and uncomfortable task. In that process, though, it's important to manage your retirement accounts and designate beneficiaries accordingly. Here are five retirement plan beneficiary mistakes you should avoid. A financial advisor can help you put an estate plan together for your family’s needs and goals. Read More...
Jan 03, 2023 A trust can hold many different assets, including your individual retirement account (IRA). Doing so can have benefits for you and your heirs, but it’s important to structure the trust properly. We'll discuss how a trust works and what you need to know. A financial advisor could help you create a financial plan to protect your investments and identify new opportunities to make money. Read More...
May 06, 2023 Settling an estate can be a complicated and sometimes time-consuming process. It’s the job of the executor to inventory assets, determine what expenses need to be paid and distribute the remainder of the estate to the deceased’s beneficiaries. If you’re set to inherit, you may be wondering what estate expenses are paid by the beneficiary. The answer can depend on what assets are passed on to you when a family member or loved one passes away. For more help with estate issues, consider working with a financial advisor. Read More...
Dec 14, 2022 A trust is an excellent way to bestow wealth, but disbursing money to your beneficiaries hinges on a crucial party: the trustee. Your trustee’s financial knowledge, discretion and accountability will influence how a trust impacts beneficiaries. These duties can be overwhelming for one person to manage, especially if they’re a family member. Fortunately, a trust can have an institutional trustee, such as a bank, that oversees the acts of a trustee on your trust. For help with creating and managing a trust, consider working with a financial advisor. Read More...
May 27, 2023 When a loved one dies, there are a lot of questions you have to deal with, not the least of which is how to pay for a funeral and other death expenses. A life insurance policy could help, but the deceased must have made sure the proper beneficiary is named. If at least one beneficiary is not designated, some problems with the estate could arise or the life insurance could go to the decedent's estate. The same is true if the one beneficiary preceded the decedent in death. You might want to name more than one primary beneficiary, according to the laws of your state, or a contingent beneficiary. A financial advisor can help you see that all the pieces of an estate plan are in place when you need it. Read More...
May 27, 2023 Estate planning has become less of a priority for middle-aged adults, a new survey indicates. Americans between 35 and 54 years old are for the first time less likely to have a will than people ages 18 to 34, according to a Caring.com survey of 2,500 adults. That's not a good sign for middle-aged adults, especially those with children they'd like to leave something for. An estate plan is an important element of financial planning, as it ensures your assets will pass to your loved ones or the causes you support at the time of your death. A financial advisor with estate planning experience can help guide you through this important phase of planning. Read More...
Apr 27, 2023 Estate planning is one of the most difficult and important financial planning processes you'll ever go through. It’s complex, and the bigger your estate, the tougher it gets. While creating your estate plan, you may find yourself wondering whether your life insurance policy will be part of it. In the end, your beneficiary designation determines where the funds go and how it will interact with your estate. Consider working with a financial advisor as you put together your estate plan. Read More...
Nov 29, 2022 When mapping out your estate plan, you may come across the term "residuary estate." In simple terms, a residuary estate is any part of your estate that hasn’t been distributed to your heirs through a last will and testament. Also referred to as estate residue or residual estate, it simply means assets that are left over once your will has been read, assets have been distributed to your heirs and any final expenses have been paid. Proper estate planning can help you avoid leaving residual assets behind. Read More...
May 27, 2023 Estate planning can be complicated. You often need the services of a professional. Preparing a will is only one part of the estate planning process. When you are preparing your will, you need to decide whether or not a no-contest clause is appropriate. A no-contest clause is designed to prevent beneficiaries from challenging a will after you die. Here's how it works and why you may want to include one in your will. A financial advisor can help you with all aspects of estate planning. Read More...
May 29, 2023 One of the essential steps in the probate process is filing an inventory of all the assets that are part of the estate. This job is the responsibility of the executor, and it’s often no small feat. It involves determining the value and ownership of real estate, securities, bank accounts and other assets and filing a formal inventory with the probate court. Every state has different rules, forms and deadlines for this process. Therefore, you'll want to check with the courts in your area before starting. Consider working with a financial advisor as you prepare your estate plan. Read More...
Nov 23, 2022 Creating an estate plan means you have control over what happens to your assets when you pass away. Naming an executor is an important step, as that person will be responsible for settling your estate and distributing your assets to your heirs after you’re gone. State probate laws may require an executor to have a probate bond in place as they carry out their duties. It’s important to understand what that means if someone names you as their executor. For help planning your own estate, consider working with a financial advisor. Read More...
Nov 23, 2022 When people pass away, their wealth is generally passed on. In the case of passing on your individual retirement account or an IRA, you have two choices. You can name a beneficiary or multiple beneficiaries to receive the income from your IRA distributions or you can designate your estate to be the beneficiary of your IRA. If the estate is the beneficiary, the account assets will be distributed to it and the estate's heirs will share them, hopefully, based on the owner's will. If you're not sure which route to take, consider talking to a financial advisor who can help you figure it out for your estate. Read More...
Nov 23, 2022 Breaking a trust refers to one party unilaterally dissolving a trust and distributing its assets, either back to the original donor or to the trust’s beneficiaries. This can only happen at the direction of the trust’s creator. If a third party, such as a beneficiary, wants to end the trust that person has a few options beyond suing to prove fraud or some other form of wrongdoing. In that case, the court will dissolve the trust at its own discretion. If you have questions about your trust, consider working with a financial advisor who specializes in estate planning. Read More...
Apr 19, 2023 The HEMS standard is used in estate planning to guide trustees in how and when they should release funds to a beneficiary. By including HEMS language in a trust, you can exert greater control over how the trust’s assets are ultimately spent and for what purpose, including health and education expenses. This can be especially useful if a trust’s beneficiary is young or financially inexperienced. A financial advisor who offers estate planning services can help you set up a trust that meets the needs of you and your beneficiaries. Read More...
Nov 22, 2022 The death of a parent can be emotionally trying, especially if the passing was unexpected. It can also be a test of your patience if there are complicated estate issues to sort out. If you have siblings, for example, there may be questions about who should inherit what. State law can define siblings’ rights after parents’ death and it’s helpful to understand what that might mean for you and your family. You may also want to work with a financial advisor if you're planning on inheriting a substantial amount of assets so that you can create a proper financial plan. Read More...
Nov 16, 2022 If you own any property at all, you probably know about estate planning. You can decide what happens to your assets after you die, of course. But sometimes, people don’t pen a will or trust before they pass. Or, if they do, it’s not clear in its directions. They might even have debts that conflict with their wishes. These situations can lead to probate, well-known for dragging on, though the actual length depends on several factors. Considering that an estate may require probate even if the deceased wrote a will, acquainting yourself with these factors is vital. Here’s an overview of the main things you need to understand about the probate process so you can be ready Read More...
May 27, 2023 You’ve worked hard your entire life and you’re hoping to pass the fruits of your labor onto your children or grandchildren and not the Internal Revenue Service. If that’s the case, you may be interested in a gift in trust, which is a legal and fiduciary vehicle that makes it easier to transfer wealth to the next generation without being subject to federal estate taxes. It's important to understand how it works and why you may want to set one up. You can also work with a financial advisor to help you improve your overall estate plan and make sure you're set up to pass your wealth to the next generation. Read More...
Nov 09, 2022 Confronting our health and what might happen to us someday is not an easy task. Even though estate planning is emotionally challenging, it’s a necessary step to protect yourself. Not only that, without any plans, your loved ones might face unnecessary difficulties. Dealing with the assets alone can be a struggle. You wouldn’t want them worrying about making medical decisions on top of that. The cost of a living will is going to depend on how you create it and could depend on where you live. You can speak with a financial advisor to help you determine how a living will fits into your financial picture. Read More...
Apr 21, 2023 Trusts and estates are the two main legal structures for transferring assets to your heirs and beneficiaries. Each works in critically different ways. Estates make a one-time transfer of your assets after death. Trusts, meanwhile, allow you to create an ongoing transfer of assets both before and after death. Here’s how each one works. Consider working with a financial advisor as you weigh the relative merits of trusts and estates. Read More...
Nov 02, 2022 Texas allows the heir of a person who has died without a will to avoid probate by using a summary administration process with a small estate affidavit. A small estate affidavit can allow an heir to claim bank accounts and other estate assets much faster and at far less cost than through a probate. In Texas, this process can only be used if the estate is worth less than $75,000, not counting the deceased person’s primary residence, and it can’t be used to transfer ownership of real estate except for a primary residence. Talk to a financial advisor to help you plan your estate. Read More...
May 30, 2023 Indiana lets qualifying heirs of a person who dies without a will avoid probate through a small estate affidavit. Beneficiaries of a small estate can usually claim bank accounts and other estate assets faster and cheaper than going through probate. In Indiana, this summary administration process can only be used if the estate is worth less than $100,000 and at least 45 days have passed since the death. Estates that include real estate may be settled using this process after petitioning the court for permission. Talk to a financial advisor who can help you plan out your estate. Read More...
Nov 01, 2022 Virginia allows an heir of a person who has died to avoid probate by following a summary administration process using a small estate affidavit. With a small estate affidavit, an heir can usually claim bank accounts and other estate assets much faster and at far less cost than via probate. In Virginia, this process can only be used if the estate is not worth more than $50,000 and at least 60 days have passed since the death. For Virginia estate assets worth no more than $25,000, an even more streamlined process can be used that does not require a small estate affidavit. Talk to a financial advisor if you need help planning your estate or figuring out how to quickly receive an inheritance. Read More...
Nov 01, 2022 Florida provides two ways to settle small estates without going through the often time-consuming and costly process of probate. A procedure called Disposition of Personal Property Without Administration allows beneficiaries to quickly and inexpensively settle a very small estate that is no larger than the deceased’s funeral expenses and medical expenses for the previous 60 days. Summary administration is another approach for somewhat larger Florida estates worth up to $75,000. Talk to a financial advisor to help you plan your estate. Read More...
Oct 26, 2022 Illinois allows someone with a claim to assets in the estate of a person who has died to collect them without going through formal probate by using a summary administration process employing a small estate affidavit. With a small estate affidavit an heir usually can get access to bank accounts other estate assets much faster and at far less cost than via probate. This process can only be used if the estate is worth less than $100,000, however, and other limitations apply. Talk to a financial advisor to help you plan your estate. Read More...
Oct 26, 2022 California allows a person with a claim to assets in the estate of someone who has died to collect them without going through formal probate by using an affidavit for collection of personal property, elsewhere called a small estate affidavit. This tool can only be used if the estate is worth less than $166,250. And it can only transfer certain assets and requires agreement from everyone else who might have a claim to the assets. However, with its help, an heir can collect bank accounts, stocks and other personal property from an estate much faster and at far less cost than probate. Talk to a financial advisor to help you plan your estate. Read More...
Oct 26, 2022 A small estate affidavit is a sworn legal document that may allow an estate to avoid going through probate. Small estate affidavits are permitted in many states, as long as the value of the estate is small enough. Using one can let an heir claim assets of the deceased in days or weeks instead of the months or years it can take for an estate to go through the probate process. Using a small estate affidavit also cost very little or even nothing, while the probate fees can eat up sizable portions of estate’s value. A financial advisor can help you create an estate plan for your family's needs and goals. Read More...
Mar 21, 2023 Whether you're young or old, it's important to have a plan for what happens to your assets when you die. Estate planning is an essential part of financial planning. It pays to do your research when planning your estate. We've made a list of the seven best books on estate planning so you can plan for the future with confidence. If you need more hands-on help, a financial advisor could help you create an estate plan for your family's needs and goals. Read More...
Apr 01, 2023 Some financial assets, like bank accounts and retirement portfolios, are designed to pass from one person to another. This designated recipient is known as a “beneficiary,” meaning that you have named the person who will take possession of any given account when you die. If you haven’t named a beneficiary for a specific bank account that account will transfer through the ordinary estate and probate process when you die. Estate planning can be complicated and difficult if you go about it on your own. Instead, consider working with a professional financial advisor to help protect your assets. Read More...
Sep 06, 2022 One of the common estate planning tips for investors is to get a trust to protect their assets. However, that advice is hardly specific enough. There are many types of trusts, and each has its unique pros and cons. In this article, we're going to focus on the key differences, as well as pros and cons, between a family trust and a living trust. One of the smartest moves you can make in estate planning is to work with a financial advisor. Read More...
May 29, 2023 When a loved one passes away, it can be an emotional experience. Unfortunately, handling the deceased's finances can add to this stress. While most people know that you need to file a final tax return for the deceased, most people don't know how to handle income received after the person has died. This income is known as "income in respect of a decedent" (IRD), and it has its own special rules. Consider working with a financial advisor as you prepare an estate plan or implement a loved one's estate plan. Read More...
