Many believe that once they set up a revocable living trust and change the ownership of their accounts and property from themselves as individuals to their trust, those accounts and property are protected from lawsuits. This is not true.
As a business executive, you are used to strategizing and creating goals as part of your job. But have you devoted time to strategizing and creating goals to protect yourself and your loved ones?
You may be surprised to learn that not only has asset protection planning been around for a long time, but you likely have already engaged in it at some point. You may have one or more types of traditional asset protection planning currently in place.
A common misconception is that only wealthy individuals and people in high-risk professions, such as doctors or lawyers, need an asset protection plan. However, anyone can be sued.
Many married couples share almost everything, including finances. This may be reflected in their estate plan, which uses one joint living trust instead of two separate trusts. Separate trusts can provide greater flexibility, but a joint trust can be structured so that when one spouse passes away, the trust is split into two subtrusts: a survivor’s trust and a decedent’s trust.
When you create a trust, choosing a trustee is one of the most important decisions you will make. If you create a revocable living trust—a trust you establish during your lifetime and can revoke or amend—you may act as trustee for your trust, retaining complete control over and benefit of the money and property it holds.
If you have a revocable living trust, you probably named yourself as the initial trustee so that you can continue to manage your financial affairs. However, someone else will eventually need to step in to administer your trust when you are no longer able to act due to incapacity (the inability to manage your affairs) or after your death. This person is known as your successor trustee.
Understanding the basics of each fiduciary role and what to consider when making your choices can help ensure the effectiveness of your estate plan.
When you establish a trust, you nominate someone to be the trustee. If you are creating a revocable living trust, you will likely be the initial trustee.
The long, carefree days of summer are drawing to a close. If you have a high school senior at home, childhood is also coming to an end for them as they prepare to graduate, turn 18, and enter the “real world.”
As our client—and as a parent—you understand that having a comprehensive estate plan ensures your children will be taken care of in the event of your passing. But what if something happens to your child? Should they have a will, too? If they do not, what happens then?
Being an adult comes with freedom and responsibility. You can now make important decisions independently without consulting your parents or guardians. While this may feel incredibly liberating, it is not without some scary moments. As an adult, you are responsible for yourself. If you are unable to act on your behalf, no one can automatically step in for you—not even your parents or guardians.
Young adults are not typically known for being the most financially responsible individuals. Yet, financial planning is more critical than ever for a generation that is struggling with high inflation and debt and tends to prioritize spending over saving. If your advice is brushed aside, try putting yourself in your child’s position and seeing the current economic environment through their eyes. Professional guidance can also help break through money management barriers and prepare a young adult for a lifetime of financial success.
The proceeds from your life insurance policy can benefit your loved ones in many ways, from paying off your outstanding debts to providing supplemental income for your spouse and children to covering funeral and burial expenses.
Pension and retirement accounts often form a large portion of an individual’s wealth and should be accounted for in an estate plan. If a retirement account holder completes a proper beneficiary designation, their account assets will bypass probate.
Misunderstandings about how much life insurance costs and what type to purchase are the most significant barriers to buying a policy. Even among those with a life insurance policy, there are knowledge gaps about how it can be used to meet their financial and estate planning goals. Two Types of ...
Retirement is a milestone that many of us have worked toward for decades, but planning for a secure and comfortable retirement doesn’t end with saving money. In New Jersey, where living costs and taxes can impact long-term financial stability, retirement planning must go hand in hand with estate planning. Ensuring that your assets are well-managed and passed on according to your wishes is crucial for your peace of mind and your loved ones’ future.
What is a Dynasty Trust, and why should you consider one? If you have significant wealth, one of the best ways to protect your family and transfer your wealth is through a dynasty trust. However, setting one up requires considerable financial and estate planning knowledge. As experienced estate planning attorneys, we can explore all options to protect your legacy and decide if a dynasty trust is right for you.
Not long ago, pet trusts were thought of as little more than eccentric things that famous people did for their pets when they had too much money. These days, pet trusts are considered much more mainstream. For example, in 2016, Minnesota became the fiftieth state to recognize pet trusts legally.
When developing your estate plan, addressing every account or property you own is nearly impossible. There are sure to be some things you unintentionally overlook. However, by including a residuary clause, you can intentionally disburse any remaining items inadvertently left over during the estate or trust administration process to a named beneficiary or group of beneficiaries.
Today, many estate plans contain an irrevocable trust that will continue for a spouse’s lifetime and then continue for the benefit of several generations. Because trusts like these are designed to span multiple decades, they must include trust decanting provisions to address changes in circumstances, beneficiaries, and governing laws.
As we age, legal and financial matters become increasingly important. Elder law is a specialized area of law that focuses on issues affecting older adults and their families. Whether planning for your future or helping a loved one navigate legal complexities, understanding the basics of elder law can empower you to make informed decisions.
Having an estate plan is a great way to ensure you and your loved ones are protected today and in the future. When creating an estate plan, we look at what is going on in your life at that time.
Now is the perfect time to start working on an estate plan. As newlyweds, you are likely deciding which of your accounts and property (your assets) to combine and how to turn two households into one. You may also be setting up new bank accounts and creating a plan for paying shared bills and other expenses. You can use that time, energy, and work to leapfrog into planning your future, which will prepare you for the following stages of your new life together.
If you recently married or have been married for a while and have acquired additional money or property (or plan to), you have options regarding how your assets can be owned. Although joint ownership seems easy and convenient, it may not always work as well as you think it should, depending on the circumstances.