Irrevocable Trusts have long been an effective, albeit static, estate planning tool. These trusts didn’t always change with circumstance, but now they can. This article explores how. … [Read more...] about Changing “Irrevocable” Trusts Through Judicial and Nonjudicial Modification
Estate Planning
Changing “Irrevocable” Trusts Through Decanting
Irrevocable Trusts are often included as part of a comprehensive estate plan and are usually established many years before they pay out or terminate. These trusts didn’t change with changes in beneficiary circumstances or with evolving legislation, but now they can. This article explores how. … [Read more...] about Changing “Irrevocable” Trusts Through Decanting
Conservation Easements Can Be a Good Solution
Often, a client wants to keep land in the family. Sometimes they want to discourage further development and get tax benefits for doing so. A conservation easement can help achieve both objectives. Read on to learn more. … [Read more...] about Conservation Easements Can Be a Good Solution
Own an Out-of-State Vacation Home? You Need a Living Trust
It is nice to own a second home that you can enjoy when you have vacation time, and memories are made when you spend quality time with your family and friends. From an estate planning perspective, you should understand some things about probate if you are in this position. Estate Administration Probate can be succinctly defined as the legal process of estate administration. If you use a will to facilitate postmortem asset transfers, the hands-on administrator is the executor. You name the … [Read more...] about Own an Out-of-State Vacation Home? You Need a Living Trust
What Is a Fiduciary?
A fiduciary is an individual or entity that has a legally binding responsibility to another party or parties. Fiduciaries are a very important part of the estate planning process, and we will provide an explanation in this post. Executor of an Estate If you use a simple will to state your final wishes, you have to name someone that will handle the estate administration tasks after you are gone. This is the executor, and the executor of an estate is a fiduciary. They would have a legal … [Read more...] about What Is a Fiduciary?
Debunking Four Estate Planning Myths
There are myths that circulate about estate planning, and if you buy into them, you can make mistakes that yield unintended negative consequences. With this in mind, we will look at four of them in this post in an effort to raise awareness. Estate planning is only for the rich. Some people think that estate planning is something that is only important for high net worth individuals. Yes, people that are in possession of a significant store of wealth have to put estate plans in place, and the … [Read more...] about Debunking Four Estate Planning Myths
Who Gets Your Assets If You Don’t Have an Estate Plan?
There are people that are under the impression that the government will step in and take care of everything if you fail to put an estate plan in place. Many of these individuals intend to execute some type of strategy in the future, but they are in no hurry, because they feel as though there is a safety net. If you were to die without a will or a trust, in a legal sense, the condition of intestacy would exist. Under these circumstances, it is true that the state would step in to provide … [Read more...] about Who Gets Your Assets If You Don’t Have an Estate Plan?
Advantages of Using a “Grantor Trust” in Planning
Grantor trusts are trusts which are income taxed to the “substantial owner” of the trust. Usually, the substantial owner is otherwise known as the “grantor” or “trustor.” Grantor trusts can be quite useful in tax planning. Read on to learn more. … [Read more...] about Advantages of Using a “Grantor Trust” in Planning
Taxation of Nongrantor Trusts
“Nongrantor” trusts are trusts which aren’t taxed to a substantial owner pursuant to the grantor trust rules. Such a trust must file its own tax return and the income of the trust would be taxed to it, unless distributed. Read on to learn more. … [Read more...] about Taxation of Nongrantor Trusts
Tax Reporting with Trusts
Grantor trusts are trusts which are income taxed to the “substantial owner” of the trust. Usually, the substantial owner is otherwise known as the “grantor” or “trustor.” Nongrantor trusts are trusts which are not grantor trusts. But, what is the tax reporting for grantor and nongrantor trusts? Read on to learn more. … [Read more...] about Tax Reporting with Trusts
