Ways That Trusts And Lawful Estate Planning Protect Your Property
Estate planning and trusts are all about planning not only for your own future but also the financial wellbeing of your family and loved ones after you’re gone. However the reality of life can often get in the way of a smooth transition divorce second marriages step kids longterm illness and other family changes make life and estate planning sometimes a little unpredictable.
Remember protecting your wealth and the financial wellbeing of your family is about a lot more than simply splitting up your assets it’s about providing for your family members in a way that’s responsible and speaks in detail to your situation. To learn more about how trusts can help you do that read on.
Trusts are for Everyone
Many people make the assumption that estate planning and trusts are the domain of the incredibly rich or people looking to lower their inheritance tax. However in the real world that isn’t accurate.
A trust is an incredibly versatile estate planning tool that allows you to address inheritance goals for your heirs who may still be children are disabled are from a mixed family or answer difficult questions like who will manage your trust if you become incapacitated a living trust.
How to Set Up a Trust
Setting up a trust will involve the assistance and services of an estate planning attorney. By consulting a legal professional this person can help you create a trust that speaks to your specific family needs. For these services you’ll likely pay between 1500 to 5000. Some trust costs are based on a percentage of the total estate value.
Setting up Trusts for Children
Typically when a child inherits the money is placed in a custodial bank account and held until he or she turns 18 or 21. Of course giving a young person access to a large amount of money at the age of 18 or even 21 can be both dangerous and detrimental to their longterm financial health if they lack maturity or sufficient financial wisdom.
Instead a wellsetup trust for minors will not only hold the assets until the child comes of age but it also allows you to stipulate at what age they may receive the funds whether those funds will be given at once or in installments and how the inheritance can be used. For example many people stipulate that trust funds must be used for expenses associated with education until the child turns 25.
Trusts for People with Special Needs
If you are caring for a child or a dependent with special needs mental or physical whom you expect to outlive you then setting up an inheritance trust should be a critical part of your estate planning. It’s also important to ensure the trust is not set up as an income source as this can interfere with Social Security and Medicaid benefits.
Instead a specialneeds trust will protect your heir’s eligibility for financial assistance but continue to provide support. It will also legally protect the inheritance from potential squandering or mismanagement.
In short estate planning and trusts can help address a number of familial issues but don’t ignore your own inevitable mortality and leave such planning until it’s too late.
About the writer: Jeffery Morris is a CPA with 25 years of experience and has served as an adjunct professor of taxation at Golden Gate CSUF and USC. To economically streamline the property tax appeal process go to http://www.californiaproptaxappeal.com where you answer interview style questions then print your property tax appeal forms along with comparable sales all done within 10 minutes for 29.99. The inspiration for the site came from Mr. Morriss experience as a Tax Partner at a Big 4 firm where technology was used to simplify preparation of tax forms for a variety of tasks for clients.
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