The type of trust that is most commonly used is the revocable living trust. Many people are comforted by the idea that it is possible to change your mind and dissolve the trust at some point in the future. Plus, if you create this type of trust, you have control even while you are alive and well. As the grantor of the trust, you could serve as the trustee and the beneficiary at first. In the trust declaration, you would name successors to assume these roles after you are gone. You can change … [Read more...] about When Would You Use an Irrevocable Trust?
asset protection
A Family Limited Partnership Can Protect Assets
They say that we live in a litigious society. There are always individuals out there that are poised to file lawsuits against people that they perceive as “deep pocket targets.” Clearly, asset protection is important to safeguard your own interests, and there are legacy planning implications as well. Family Limited Partnerships One legal structure that can be the ideal asset protection tool when certain circumstances exist is the family limited partnership (FLP). The best way to explain the … [Read more...] about A Family Limited Partnership Can Protect Assets
Your Planning Can Help Your Loved Ones
Each of us will die eventually. This article looks at how planning can make your passing easier for your loved ones. Specifically, this article will look at the importance of the manner in which assets are left for your loved ones. Your Planning Can Help Your Loved Ones … [Read more...] about Your Planning Can Help Your Loved Ones
Two Business Structures That Provide Asset Protection
You should definitely prioritize asset protection when you are starting a business. It is important to separate your personal property from the business assets, and vice versa. There are two legal structures that are typically utilized for small business owners that want to protect assets, and we will look at them in this post. Limited Liability Companies A limited liability company can provide an asset protection solution in many instances. When you establish an LLC, there is legal separation … [Read more...] about Two Business Structures That Provide Asset Protection
ATRA and Your Estate Planning Efforts
As you may know, when the American Taxpayer Relief Act of 2012 was passed and put into law, it immediately made permanent several estate and gift tax provisions. It also provided a more definitive rule for transfer tax rates and exemption amounts. These were put in place in a way that would allow them to kick in this year. ATRA For more than a decade, there was no small degree of confusion about a number of compliance issues for transfer tax rates and exemptions. The new law remedies most - … [Read more...] about ATRA and Your Estate Planning Efforts
Estate Planning and Asset Protection Planning
All of us have the need to protect our assets; after all, we’ve worked hard for what we have and we want to be sure there’s something left after we’re gone. Asset protection planning is simply the effort of protecting what you’ve worked for from potential creditors. Don’t mistake the intent: it’s not about hiding assets to avoid paying taxes, nor is it fraudulent or illegal. Instead, it’s about covering your financial bases. These days, it’s increasingly difficult to maintain those assets … [Read more...] about Estate Planning and Asset Protection Planning
Think Twice Before Taking a Pension Advance
Have you been tempted to take a pension advance loan? There are such things after all. Here’s how they work: You get a lump sum payment and pay the lender back over time, usually five or ten years. You get the money you need now, but at a price. No company is going to give you money as a favor and they need to be repaid, not unlike other lenders. There are limits on the amount of interest that can be charged, but additional fees can quickly increase your monthly payments. In addition to … [Read more...] about Think Twice Before Taking a Pension Advance
You Are at Financial Risk
The estate has been set up. Wills and trusts are established. Unfortunately, you are still at financial risk. The elderly are at high risk for fraud and other financial scams for several reasons. Most importantly, they have some money to lose. They are also around the house when the phony public employees and unscrupulous contractors are plying their trade. Unfortunately, they may be more trusting than they should be and not always have their defenses up. There are many steps to take to … [Read more...] about You Are at Financial Risk
