The decision to place your money and assets into an irrevocable trust is a serious one. That's because you will not be able to modify, change or revoke your irrevocable trust after you have created and funded it.
Living wills are important documents that you should understand thoroughly. These documents, also known as a directive to physicians or health care directives, contain your wishes for what you'd like to see happen if you're injured and unable to express your opinions and preferences for medical care. This directive generally works when you're incapacitated, like in the case that you've fallen unconscious or are in an induced coma.
An irrevocable life insurance trust (ILIT) is a special trust designed to counteract a lot of problems that can arise relating to life insurance. One of those problems relates to a large life insurance policy that triggers unplanned estate tax consequences. Another problem relates to the large quantity of cash that a life insurance payout could involve.
You might think that only wealthy people need to create an estate plan, but that thought can end up harming you and your family in the long run. Every adult, regardless of age or social status, should have an estate plan in place.
It doesn't matter how old you are -- a catastrophic medical condition could render you incapacitated in a heartbeat. However, the older we get, the more likely such a health problem will develop.
The majority of New York residents don't have a large amount of savings or assets to plan their estates around. However, estate planning is not just for the Rockefellers of the world.
You worked hard for the assets you've accumulated. The last thing you need is to lose your assets because you need medical treatment or long-term nursing care. Your estate plan can help to keep your assets protected as long as you take appropriate steps. Consider these tips as you work on getting your estate plan together.
There's an old Robert Burns poem, "To a Mouse," and you've surely heard a line or two from it. Most importantly, this one: "The best laid schemes of mice and men go often askew." Perhaps it's not the most cheerful line to keep in mind when drafting your last will and testament, but it's definitely a perspective to remember.
While it still remains to be seen which specific legislative policies the administration of President-elect Donald J. Trump will pursue in 2017, it is a relatively safe bet that a repeal of the federal estate tax will be included.