Creating a trust account can be a great way to provide financial security for yourself and your loved ones. Depending on the type of trust you choose to create, you can dictate how trust funds are managed, paid out and utilized. While selecting the right type of trust or trusts for you can be critically important, so, too, can choosing your trust administrator. To see just how important this step can be, you need only look at one recent case where a trust administrator is accused of abusing his power.
For decades, individuals and families have taken the time to explore their options to plan better for the future. Estate planning is a process that seems ancient. It does, however, change with the course of time. New investment opportunities and methods arise, and the changes to the law can give rise to new techniques to ensure that beneficiaries and their inheritances are protected. Even the definition of an asset and liability can change, redefining how we go about creating estate plans. This means that those who are thinking about their future need to ensure that they are with the times, thereby allowing themselves to obtain the holistic estate plan they need.
Planning for the future can be easier to tackle when there are instruments available to help us and guide us through the process. There are a number of estate planning tools at your disposal. Wills are often utilized a main platform to transfer assets upon death, and trusts can play an integral part, too. In fact, there are so many different kinds of trusts that you are almost certain to find one that meets your needs. This week, we will look at the charitable trust.
Planning your estate is an important step to take if you want to ensure that your assets are passed on according to your wishes when the time comes. As this blog has previously discussed, there are many estate planning tools that can come into play throughout the process. The tools chosen are dependent upon the circumstances at hand and the future wishes of the estate planner. One common vehicle used for estate planning, though, is the will. Although most people are familiar with the basic concept of a will, some find themselves unsure of why they need legal assistance when drafting one.
Estate planning must conform to the law. Not only does this mean that wills and trusts need to be drafted in a way that renders them legally valid, but they must adhere to certain restrictions and penalties that may be imposed by the law. By possessing a firm grasp on the applicable laws, an individual who is progressing through the estate planning process may be able to take advantage of options available to him or her that could lead to cost saving.
Securing your financial future, as well as those of your loved ones, is not an easy task. When it comes to estate planning, many individuals procrastinate, primarily because they are afraid of confronting their own mortality. Even those who are able to broach the topic tend to only turn to a few of the estate planning options available to them. When this is the case, an individual may shortchange him or herself, as well as his or her family.
Creating a trust can be a great way to engage in estate planning that protects a family's assets. It can not only provide financial security for an individual and his or her beneficiaries, but it can also provide peace of mind. In order to create a valid trust, though, an individual must be careful and adhere to the law. Failing to do so could result in unintended consequences that can threaten the financial health of the estate. Yet, even once a trust is created, additional issues may arise that require close attention.
From time-to-time, you might hear someone refer to probate court. Although it may be commonly referred to in movies and television, not everyone has a clear sense of what probate is and its purpose. Hopefully this post will help shed some light on the subject.
The passing of a loved one can kick start a process that triggers the distribution of the deceased's assets and debts. This process, as well as the court that can oversee it, is often referred to as probate. Many people cringe when they hear the word probate, as it causes them to conjure images of embattled relatives fighting over a deceased loved one's money. Although this can and does happen, this is not the sole purpose of probate.
To the unfamiliar, having an estate plan may seem relatively simple. One just needs to write something up saying how he or she wishes for her assets to be divided upon his or her passing and that's it. For better or worse, the process is nowhere near that easy. In fact, the process can be exceedingly difficult when estate planning matters are improperly handled. When this happens, it can be time-consuming and costly to resolve these matters, not to mention one's estate may not pass according to one's wishes. For this reason, competent estate planning is recommended.