Living Trusts - What the Experts Say!

  For US persons, an irrevocable life insurance trust (ILIT) is arguably the most efficient structure for integrating tax-free investment growth, wealth transfer and asset protection. An ILIT comprises two main parts: (1) an irrevocable trust; and (2) a life insurance policy owned by the trust. An international (or offshore) ILIT is a trust governed by the law of a foreign More...

  The unified, lifetime federal gift and estate tax exemption in calendar year 2012 is set at $5.12 million. The federal lifetime exemption for the generation-skipping transfer tax (GSTT) is also $5.12 million in 2012. These are the highest exemption amounts in decades. In 2013, these exemptions are scheduled to go back down to $1 million, and the maximum estate and GST More...

  This article was adapted from the introduction to Hoops, Adams & Alexander, PLC's comprehensive “Successor Trustee Handbook.”  It offers an overview of what it means to be in charge of someone else’s affairs. If a relative or friend has named you to be the successor trustee of their trust (or to be the personal representative of their More...

    Many people in the United States are currently considered disabled as defined by Social Security. Their disability may entitle them to receive various benefits that are provided by the federal and state government. Some of these benefits, such as supplemental security income, Food Stamps, housing or fuel assistance, may only be available to the disabled person if he More...

In many cases a person dies owning investments such as stocks, bonds, mutual funds and other financial assets. During the administration of the probate estate or trust estate, the personal representative or trustee, as the case may be, will be required to take possession and manage these investments. Investment of Securities. As a personal representative or trustee you More...

As a Trustee of a decedent's trust or as a personal representative or executor of a decedent's probate estate, you may be required to sell the decedent's real estate. In doing so, you will be confronted with legal issues and requirements as well as practical issues. I will address both in this article. If the decedent or his trust owned real estate at the time of his More...

If you've been named as the Successor Trustee of a Trust, all of the duties may seem overwhelming. Here's a checklist of things you need to do to administer the trust. 1. Review trust documents. The first step in administering a trust estate is to locate and review all of the decedent's estate planning documents. Most estate plans include the Trust agreement More...

Individuals with mental or physical disabilities oftentimes receive government benefits based on their financial needs. Most of the time these benefits are insufficient to meet the disabled person's needs, and relatives and friends want to make gifts to a disabled person or make a bequest to that person in a will or trust to supplement the government benefits that the individual receives. More...

John and Mary are going through a divorce in California. They have no children. Mary has not worked outside the home during their entire marriage of 10 years. She now suffers from Parkinson's Disease and is unable to work. Their respective attorneys have jointly determined that, based upon John's income and Mary's need, John should pay approximately $1,500 / month in spousal More...

  Estate planners use trusts to protect beneficiaries from their inability, their disability, their creditors and their predators. Included under "creditors" are the IRS and divorced spouses. More sophisticated estate planners generally create multi-generational dynasty trusts for their clients' descendants that are (1) estate tax protected, (2) creditor protected and More...

  If you’ve ever thought about a living trust, it’s probably because you hate the idea of going through probate.  Living trusts have been heavily marketed on that basis over the past several years and, yes, living trusts certainly do avoid probate.  But, there’s a whole lot more to living trusts than just that.  In fact, avoiding probate is not even More...

  If you have a revocable living trust, funding of the trust is an essential step to ensure that the trust operates as intended. Funding your trust with the bonds that you own is just one step in this funding process. In order to transfer your bonds to the trustee of your trust, you will need to identify the type of bond, and select the proper method of transfer. You will also want to More...

Parents spend years providing, protecting and caring for us as their children. We honor them by giving Mother a day in May and Father a day in June to express our appreciation for their years of effort in our behalf. Wouldn't it be great if there was some way we could make sure that they too are provided for, protected and, if needed, cared for as they age? One of the most satisfying More...

  I have received a number of emails lately about when to fund a living trust. It's a question that seems to confuse a lot of people because there appears to be several right answers. And, there are - depending upon your reasons for establishing a living trust in the first place. First, funding a living trust simply means transferring your property to your trust. How you More...

If you’re the parent of a disabled child, you’re probably concerned with the uncertainty of your child’s financial future and the realization that you will not always be around to provide for him. Understanding your disabled child’s future needs and eligibility for available resources will allow you to create a plan that will protect his financial security. A More...

  The term "QDOT" is an acronym for "Qualified Domestic Trust."  Some people prefer to use the acronym "QDT," but we'll refer to this type of trust as a QDOT.  Qualified Domestic Trusts were created under the Technical & Miscellaneous Revenue Act of 1988 (TAMRA), effective for decedents dying after November 10, 1988.  Prior to More...

  Planning for your disabled child’s financial future will protect his or her financial security and eliminate the emotional strain placed on family members left with the responsibility to care for this child upon your death. One of the most important concerns parents of a disabled child have is the uncertainty of the future and the More...