Living trusts are identified by the word "living" because you create them while you're alive, and you have the ability to change them while you're alive. After your death, the trust will be set in stone and no one will be allowed to change it. This flexibility while you're still alive is one of the many benefits received from an estate planning perspective when someone chooses to set up a living trust.
An irrevocable trust is just like it sounds — irrevocable. In other words, once you create the trust and transfer assets to it, you can't dismantle the trust and take back the assets. In this sense, the trust cannot be changed, modified or taken apart by anyone, including the grantor who initially created it.
When creating an estate plan, you'll come to find that there are many ways to pass on your assets upon your death. Although it's a big decision, with the right information guiding you, it won't be long before you have a clear idea of what to do next.
Deciding how to leave your money to your heirs is important. Many people assume that it simply involves writing a will stating who gets what assets, and that's the end of it.
Adding a trust to your estate plan is a big decision, as this will alter the moves you make today and in the future. It also changes what happens to your estate upon your passing.
Not all trust grantors need to fund spendthrift trusts for their heirs, but they can be ideal when the heirs have proven themselves to be less than fiscally responsible.
There are many options when creating an estate plan and no one-size-fits-all solution. While that may complicate the process, it allows individuals to tailor their estate plans to meet their unique circumstances.
Are you putting off your estate-planning efforts in the hope that one of your beneficiaries will develop some financial restraint or learn how to manage his or her fiscal affairs? There is a possible solution that will allow you to quit delaying your estate planning and start the ball rolling.
There is a lot to think about when creating an estate plan, including what will happen to you and your finances in the event you become incapacitated.
"Joint tenancy" and "tenancy in common" are property ownership arrangements used when a property has two or more owners. In cases of joint ownership of a property, it will be established whether the multiple owners will hold the property as tenants in common or as joint tenants. The biggest difference between these two forms of joint ownership comes into play when one of the owners passes away.