5 Factors to Consider When Selecting a Guardian for Your Children

There is no question that having children changes everything — and estate planning is no exception. If you and your spouse pass away or become legally incapacitated, and arrangements were never made in the event of such an emergency, your minor child or children will have to be placed with a new family. Not surprisingly, such a drastic change can be a disruptive process for minor children — even if they are placed with members of your family. If you choose a guardian for your child in your will or other estate plan documents, this difficult time can go much more smoothly if you know the main factors to consider when selecting a guardian.

Who Makes a Good Guardian?

A guardian for your minor child “steps into” your shoes in the event you can no longer care for him or her. No one wants this to happen, but when a parent becomes incapacitated or dies, the minor child left behind will need care. Because a guardian plays such an important role in your family’s life, there are several factors to consider when selecting a guardian to take on this role:

  • Shared values. It is best to choose someone who has a common level of religious belief. For example, if you are not the religious type you may have objections to someone who would expect your child to join and regularly attend church.
  • Parenting style. Whether you run a tight ship at home or prefer a laissez-faire approach to raising children, choosing someone who will continue in your style is likely the best fit.
  • Involvement. Someone who travels all the time will not be able to regularly show up to your kids’ soccer games, gymnastics meets, band concerts, and live theater performances — an important part of being a guardian to your children.
  • Energy level. Having the stamina to be able to keep up with your child — especially during the younger years — is an important factor.
  • Other children. While a potential guardian who already has children should not be a deal-breaker, you should consider how adding more children into the family will affect the dynamic, particularly when it comes to the ages of the kids.

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Other Factors to Consider

In the same manner that you can choose different individuals to manage the estate’s finances and your minor children’s day-to-day needs, you can also choose more than one guardian for your kids. You may want to assign one guardian per child, depending on your family’s circumstances. That being said, setting up guardianship this way may result in your children being separated from one another, which is usually not a good outcome.

Choosing someone who has the resources to care for your children — even if you have left money behind for their care — should also be a factor to consider. Finally, choosing someone who is young enough to be able to care for your child through his or her adulthood, as well as someone who is in good enough health to withstand the challenges of raising a child, are important factors that should be taken into account.

Selecting Your Child’s Guardian

Once you have made a decision on who will be your child’s guardian, contact an experienced estate planning attorney. We can draft the documents you need in order to make this legally binding, as well as create an estate plan that suits your family’s needs and will protect your loved ones in the event you are no longer able to do so yourself. Contact Williams Starbuck today to schedule a free consultation and to learn more about the full process.

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What to Ask A Potential Will and Trust Attorney

It goes without saying that estate planning is incredibly important and is more than just having a will or a trust. Estate planning offers a sense of security for you and your loved ones that your wishes will be carried out. With such an important and personal endeavor, selecting the right Wills and Trusts Attorney is crucial.

Doing your homework, familiarizing yourself with the options, and asking questions will be critical to getting someone who’s actively looking out for your interests.

There are several key factors you should consider when interviewing potential attorneys and ultimately deciding which one to hire.  

Funding a Trust

Will your estate planner help with funding your trust (or otherwise aligning asset ownership with your plan)? How much of the funding process with they do for you?

For some clients, this can be a critical service due to the complexity of assets he or they may own that need to be accounted for. Having someone thorough and reliable in this part of the process will make it easier to ensure the estate planning is completed properly.

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Organization and Payment

What does your estate planning process look like? How long will it take until the entire process is complete? When is payment due and how do I pay?

These questions may seem simple, but, not unlike when you pay for home repairs, it’s important to have an idea of the end date of the process. It is also important to know when you are expected to provide information and payment so that you are not the cause of any delays. Additionally, you never want surprises when it comes to payment amounts or dates. It is common to put down a retainer or deposit with a wills and trusts attorney, but it’s always important to know ahead of time.

Long-term Access

What long-term plans do you have for your firm? Will you or another attorney in your firm be around to help me in the future?

Creating a will or trust isn’t a one-and-done process. Wills and trusts are frequently revisited over the years because of changes in your circumstances and in the law. If at all possible, it’s best to have the same attorneys working with you. Although you can switch attorneys or firms each time you need an update, attorneys with plans to continue to offer services into the future can be a safer bet for ensuring continuity in your estate planning.

Planning for the Future

Can you help my family members if I become sick or when I die? Just because an attorney prepares estate planning documents, does not mean that they will help with estate or trust administration. Having the attorney who prepared your estate planning documents to assist your family during times of incapacity or at your death can be extremely helpful. Since he or she is already aware of your wishes and will have a copy of your documents, addressing these difficult situations can be quicker and involve less hassle.

Have Questions? Let Us Answer Them

There’s no reason to get overwhelmed by the choice of a wills and trusts attorney. Asking just a few simple, but critical, questions can help you find someone who’s on the same page. Contact us or give us a call today to schedule an appointment.  We would be happy to answer these questions and any others you may have.

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Common Misconceptions About Estate Planning

You have worked hard for years, have family members and friends you care about and have approached a time in your life when “estate planning” sounds like something you should do, but you are not exactly sure why. You may feel that you are not wealthy enough or not old enough to bother or care. Or you may already have a Will and feel that you are all set on that front.

Whatever your current position, consider these common misconceptions about estate planning:

Estate Planning is for Wealthy(er) People

False. Anyone who has survived to age eighteen and beyond has likely accumulated a few possessions that are of some monetary or sentimental value. While things like your home, your car, and financial accounts are self-evident assets, that collection of superhero figurines or your iTunes library also deserves proper attention. There is no minimum asset value required to justify having a Will, especially since there are many low-cost options, including estate planning attorneys who will not charge an arm and a leg for a basic Will.

Estate Planning is for Old(er) People

False. Tragedy can strike at any moment, and it is best to have your affairs in order so as not to put your loved ones in a financial or bureaucratic bind while they are grieving. Young parents should ensure that proper guardians are in place to take care of their children if they are no longer around, lest the children end up with the most irresponsible member of the family or, worse, a complete stranger.

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Estate Planning Means Having a Will

False. Having a Will is smart because it puts you in charge of the disposition of your assets. A Will allows you to pick your executor, designate the guardians for your minor children, and name any individuals and charitable organizations as beneficiaries of your estate.

If you were to die without a Will (i.e., intestate), the law of the state where you reside at your death would govern who receives what part of your estate, who administers your estate, and who takes care of your children. There are some situations where state law may override the provisions in your Will (e.g., a spouse’s elective share), but for the most part, you are in the driver’s seat.

However, a Will is only one tool in the estate planning toolbox. There are other vehicles that allow you to remain in control of your possessions and family’s future during life and upon death. Depending on your situation, a Will alone may not be the most efficient or the most cost-effective means to achieve your goals.

Non-Probate Options

Upon your passing, your Will has to go through probate – a process whereby a court reviews your Will and determines its validity. It is a lengthy and often costly process in many states, to begin with, and can become even lengthier if a Will is contested (e.g., on the grounds that someone coerced or cajoled their way into an inheritance).

The delay in the disposition of your assets and the accompanying legal costs may put your family members in financial straits. If your goal is to ensure that your survivors’ cash flow is uninterrupted after your death, it would be wise to incorporate a trust or a life insurance policy into your estate plan. These assets are considered “non-probate” – they pass outside of your Will.

There are other non-probate assets that may constitute a part of your estate. For example, a joint tenancy arrangement on your home, IRA, and payable-on-death (POD) or transfer-on-death (TOD) accounts designate specific beneficiaries upon your death, and the assets pass to them without the delay and cost of the probate process.

If your Will provides for a different beneficiary of your IRA account or another non-probate asset, it will be superseded by the beneficiary designation form on file with that account’s or asset’s administrator. Therefore, it is wise to review all of your beneficiary designations periodically, but certainly upon life-altering events like marriage, the birth of a child, or divorce.

Start Planning Now

You are neither too young nor too poor to engage in estate planning! Just remember that a Will may be a necessary, but not the only means to plan your estate in an efficient and cost-effective manner. Keep on top of your assets, and your survivors will have another good thing to say about you at your memorial.

Now that you know the common misconceptions about estate planning, Contact us today for any questions and to schedule an appointment. 

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Do You Need a Will? The Answer is Yes

Most Americans do not have a simple will as part of their estate plan. You might believe that a will is only for the rich and famous, and not the average person who has a far smaller net worth. On the other hand, you may think that a will is entirely unnecessary since you have a trust, jointly owned property, or have named beneficiaries on your insurance.

Do You Need A Will?

So, do you really need a will? The short answer to this question is “yes.” In fact, everyone who owns anything – no matter how little value it may seem to have – should have a will. This is because a will puts you in charge of directing others on your wishes and distribution of assets upon your death. Without a will or other estate plan – referred to as intestacy – you have no control and your state’s rules determine who gets what after your death. Even if you have a trust, jointly owned property, or have named beneficiaries on your insurance, a will is important, even as just a “backup” plan.

As a practical matter, the simpler your affairs are (typically, the fewer assets you own) – the less complicated your will and overall estate plan is going to be. Surprisingly to most, it does not take much to complicate your estate. For example, if you have minor children your will must name a guardian for those children in the event of your death.

Likewise, if you have a relative who is disabled, elderly, or without the financial sophistication to manage your assets after your death, a will allows you to name someone to watch over these assets for your loved ones in a special needs or supplemental needs trust. And, these are just two examples of the many things that can complicate your affairs and your estate plan.

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Why It’s Important

Many people believe if they have made beneficiary designations on life insurance policies, property deeds or retirement accounts that a will is not necessary at all.  While it is true that those particular designations will ensure the right people you elected will receive benefits or inherit those assets, the distribution stops there. If there are other assets that you own – such as a car, a china set, or jewelry to name a few – or if you would like to give part of your estate to a charitable organization, a will is essential to your estate planning needs.

What Happens If You Don’t Make One

Furthermore, when a person dies without a will (referred to as intestate), the estate goes into probate. Probate is a judicial proceeding by which the court decides the rightful heirs and distribution of assets of a deceased. Going through probate can be both more time-consuming and expensive without a will than it is with a will. This is because your will can waive certain probate requirements (like having the executor post a bond or obtain judicial approval to have an estate sale).

At the same time, probate without a will follows the governing state’s intestacy laws which may likely result in a less-than-perfect split of assets that not only may not be in line with the deceased’s wishes but may leave many surviving loved ones unhappy. Consequently, for many reasons the creation of a will can fill in gaps of property assignment or plug holes in beneficiary claims on life or other insurance policies.

Family dynamics also play a part in estate planning, something state intestacy laws do not account for. Many people have blended families. There may have been second or third marriages. Older couples may choose to cohabitate after a death or divorce and never legally get married. You may have to treat your children differently on current accounts due to distance, and without a will, those assets will not be distributed fairly.

It is important to note that a will can also include a no-contest clause, reducing the likelihood that potential heirs from arguing over its contents, something that simply isn’t possible if you don’t make a will.

Create One Now

Creating a will as part of your estate plan is primarily about passing your wealth to your loved ones after you die since a will only “works” after it’s gone through the probate court process. It really is about giving you both independence and control of what happens to your assets after your death. Instead of leaving the distribution of your property to local intestacy laws, a will can put your wishes down on paper and direct a selected person to carry out your desires exactly as expressed.

Contact us today or give us a call to schedule an appointment to start the estate planning and will process. We are here to help.

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Do You Really Need A Trust?

Although many people equate “estate planning” with having a will, there are many advantages to having a Trust rather than a will as the centerpiece of your estate plan. While there are other estate planning tools (such as joint tenancy, transfer on death, beneficiary designations, to name a few), only a trust provides comprehensive management of your property in the event you can’t make financial decisions for yourself (commonly called legal incapacity) or after your death.

What Are The Benefits Of Having A Trust

One of the primary advantages of having a trust is that it provides the ability to bypass the publicity, time, and expense of probate. Probate is the legal process by which a court decides the rightful heirs and distribution of assets of a deceased through the administration of the estate. This process can easily cost thousands of dollars and take several months to more than a year to resolve. Or course, not all assets are subject to probate. Some exemptions include jointly owned assets with rights of survivorship as well as assets with designated beneficiaries (such as life insurance, annuities, and retirement accounts) and payable upon death or transfer on death accounts. But joint tenancy and designating beneficiaries don’t provide the ability for someone you trust to manage your property if you’re unable to do so, so they are an incomplete solution. And having a will does not avoid probate.

Of note, if your probate estate is small enough – or it is going to a surviving spouse or domestic partner – you may qualify for a simplified probate process in your state, although this is highly dependent on the state where you live and own property. In general, if your assets are worth $100,000 or more, you will likely not qualify for simplified probate and should strongly consider creating a trust. Considering the cost of probate should also be a factor in your estate planning as creating a trust can save you both time and money in the long run. Moreover, if you own property in another state or country, the probate process will be even more complicated because your family may face multiple probate cases after your death, one in each state where you owned property – even if you have a will. Beyond the cost and time of probate, this court proceeding that includes your financial life and last wishes is public record. A trust, on the other hand, creates privacy for your personal matters as your heirs would not be made aware of the distribution of your assets knowledge of which may cause conflicts or even legal challenges.

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Why Should I Create a Trust

A common reason to create a trust is to provide ongoing financial support for a child or another loved one who may not ever be able to manage these assets on their own. Through a Trust, you can designate someone to manage the assets and distribute them to your heirs under the terms you provide. Giving an inheritance to an heir directly and all at once may have unanticipated ancillary effects, such as disqualifying them from receiving some form of government benefits, enabling and funding an addiction, or encouraging irresponsible behavior that you don’t find desirable. A trust can also come with conditions that must be met for the person to receive the benefit of the gift. Furthermore, if you ever become incapacitated your successor trustee – the person you name in the document to take over after you pass away – can step in and manage the trust’s assets, helping you avoid a Guardianship or conservatorship (sometimes called “living” probate). This protection can be essential in an emergency or in the event you succumb to a serious, chronic illness. Unlike a will, a trust can protect against court interference or control while you are alive and after your death.

Trusts are not simply just about avoiding probate. Creating a Trust can give you privacy, provide ongoing financial support for loved ones, and protect you and your property if you are unable to manage your own assets. Simply put, the creation of a Trust puts you in the driver’s seat when it comes to your assets and your wishes as opposed to leaving this critical life decision to others, like a judge. To learn more about trusts – and estate planning in general, including which type of plan best fits your needs – contact us today.

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Picking a Guardian for Your Minor Child(ren)

We know it’s hard. Thinking about someone else raising your children can stop you in your tracks. It feels crushing and too horrific to consider. But you must. If you don’t, a stranger will determine who raises your children if something happens to you. Your children’s guardian could be a relative you despise or even a stranger you’ve never met. That’s why it’s crucial you are picking a guardian for your minor children.

No one will ever be you or parent exactly like you, but more than likely, there is someone you know that could do a decent job providing for your children’s general welfare, education, and medical needs if you are no longer available to do so. Parents with minor children need to name someone to raise them (a guardian) in the event both parents should die before the child becomes an adult. While the likelihood of that actually happening is slim, the consequences of not naming a guardian are more than intense.

If no guardian is named in your will, a judge – a stranger who does not know you, your child, or your relatives and friends – will decide who will raise your child. Anyone can ask to be considered, and the judge will select the person he or she deems most appropriate.

Families tend to fight over children, especially if there’s money involved – and worse – no one may be willing to take your child; if that happens, the judge will place your child in foster care. On the other hand, if you name a guardian, the judge will likely support your choice.

How to Choose a Guardian

Your children’s guardians can be a relative or friends. Here are the factors our clients have considered when selecting guardians (and back up guardians).

  • How well do the children and potential guardians know and enjoy each other
  • Parenting style, moral values, educational level, health practices, religious/spiritual beliefs
  • Location – if the guardian lives far away, your children would have to move from a familiar school, friends, and neighborhood
  • The age and health of the guardian candidates:
    • Grandparents may have the time, but they may or may not have the energy to keep up with a toddler or teenager.
    • An older guardian may become ill and/or even die before a child is grown, so there would be a double loss.
    • A younger guardian, especially a sibling, maybe concentrating on finishing college or starting a career.
  • Emotional preparedness:
    • Someone who is single or who doesn’t want children may resent having to care for your children.
    • Someone with a houseful of their own children may or may not want more around.

 

WARNING: Serving as a guardian and raising your children is a big deal; don’t spring such a responsibility on anyone. Ask your top candidates if they would be willing to serve, and name at least one alternate in case the first choice becomes unable to serve.

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Who’s in Charge of the Money

Raising your children should not be a financial burden for the guardian, and a candidate’s lack of finances should not be the deciding factor. You will need to provide enough money (from assets and/or life insurance) to provide for your children. Some parents also earmark funds to help the guardian buy a larger car or add to their existing home, so there’s plenty of room for extra children.

Factors to Consider

  • Naming a separate person to handle the money can be a good idea. That person would be the trustee in charge of the assets, but not the guardian of the children, responsible for the day-to-day raising of the children.
  • However, having the same person raise the children and handle the money can make things simpler because the guardian would not have to ask someone else for money.
  • But the best person to raise the children may not be the best person to handle the money and it may be tempting for them to use this money for their own purposes.

Let’s Continue this Conversation

We know it’s not easy, but don’t let that stop you. You will be glad that you are picking a guardian for your minor children now. We’re happy to talk this through with you and legally document your wishes. Know that you can change your mind and select a different guardian anytime you’d like.

The chances of needing the guardian to actually step in are usually slim (we always hope this is the one nomination that’s never actually needed); but, you’re a parent and your job is to provide for and protect your children, so let’s do this. Contact us or call our office now for an appointment and we’ll get your children protected.

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Top 3 Estate Planning Myths to Know About

Like any other complex subject, estate planning has its share of myths and misconceptions.  Understanding the top three estate planning myths will help you to create and maintain a plan that will work the way you expect it to work when it’s needed.

Estate Planning Myth #1

You Don’t Need an Estate Plan Because Your Spouse Will Inherit Everything

A common belief is that if you’re married and you don’t have a will or a trust, your spouse will still inherit everything.  Unfortunately, this is not always the case.

Who will inherit your estate even if you’re married depends on many different factors, including how your property is titled, who you have named on your beneficiary designations, and the laws of the state where you live and any other state where you own property.  

The only way to ensure that your spouse will inherit everything is to sit down with an experienced estate planning attorney who will help you create an estate plan that will meet all of your goals.

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Estate Planning Myth #2 

You Don’t Need an Estate Plan Because Your Family Knows Your Final Wishes

You’ve shared your final wishes with your family and you’re confident that they’ll “do the right thing” after you die.  Unfortunately, without having these wishes written down in a valid will or a valid trust, your family may not be able to fulfill your intentions for several reasons.  

First, how your property is titled will determine who inherits it, not who you’ve told your family you want to inherit it.

In addition, if you fail to complete or update the beneficiary designations for assets such as bank accounts and life insurance policies, your family won’t have any authority to tell the bank or insurance company who should inherit the proceeds.  

Finally, without an estate plan, the laws of the state where you live and any other state where you own property will dictate who inherits your probate estate, not your family. The only way to ensure that your property will go to your intended heirs is to sit down with an experienced estate planning attorney who will help you create an estate plan that will meet all of your goals.

Estate Planning Myth #3 

Once You’ve Created Your Estate Plan, It’s Done

Suppose that you’ve taken the time to sit down with an experienced estate planning attorney and create an estate plan that meets all of your goals.  You may think that now you can sit back and relax because your estate plan is done.

While this attitude may seem reasonable, unfortunately as the years go by your life and the laws governing wills, estates, probate, trusts, and death taxes will continue to change, which means that eventually, your estate plan will become out of date.  

The only way to ensure that your plan will work the way you intend it to work is to pull it out of the drawer every few years and have it looked over by your estate planning attorney.

Final Thoughts About Estate Planning Myths

These are only three of the top estate planning myths.  Unfortunately, there are many more. The only way to separate the myths from reality and get a plan that will work for you and for your family is to retain the services of an experienced estate planning attorney.

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Declare your Independence from Court Interference!

While the rest of the nation celebrates its independence on July 4th, you can rest assured that you too can declare independence for your family — from court interference. Life can be unpredictable. Whether it is a financial issue, the birth or adoption of a child, sickness, or incapacity, it is important to be prepared with proper estate planning. In fact, failure to put together a comprehensive estate plan can leave you and your loved ones at the mercy of the court when it comes to distributing assets or caring for a minor or sick family member.

Estate Planning Basics

Simply put, estate planning addresses how to manage your property in the event of your death or incapacity. Some estate planning tools you have likely heard of before including last will and testaments, living wills, trusts, powers of attorney, and healthcare directives. Estate planning is a great method not only to plan your family’s financial security, but to use tools to keep your family’s personal business outside of the courtroom.

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Avoiding Probate

When someone passes away without a will it is referred to as being intestate. A person who dies intestate will have his or her assets distributed according to local intestacy rules. Probate is the legal mechanism by which your assets are distributed upon your death. The process of probate takes time, costs money, and can be a hassle and burden for the family you left behind. One important estate planning tool that will help avoid a drawn-out legal process includes a fully funded trust with up-to-date beneficiary designations. By having a fully funded trust and/or up-to-date beneficiary designations when you die, there are no assets in your estate, and therefore no need for probate.

Death is not the only time a court may become involved in your and your family’s personal lives. The court may also intervene in the event you become incapacitated. The court may appoint a guardian or conservator to handle your personal and financial matters, essentially pushing out your loved ones and stripping their ability to help and make important decisions on your behalf. There are several estate planning tools that can help you determine who you want to be in charge of should you become incapacitated. These include using a power of attorney, a fully funded trust, as well as a healthcare directive to appoint and give instructions to those you trust to make these difficult decisions for you when you need it most.

Protecting Your Loved Ones

Another important benefit of a solid estate plan is protecting those who are most precious to you — your minor children. It is important to understand that simply naming guardians in your will for any minor children you may have is not enough in and of itself. While a will does ensure your children will be properly cared for in the long term, often there are significant lapses of time between when the need arises to care for your children and when your wishes are actually carried out. Making sure your estate plan accounts for this gap is vital in preventing the state from taking over and allowing someone you do not want to raise your children from having a chance to take control of their lives and inheritance.

Declare Your Family’s Independence

There are many moving parts to a concise estate plan that must be considered in order to properly protect yourself and your loved ones. An estate planning attorney can explain your options under applicable law and craft a plan that best suits your family’s needs. There is no need to wait and leave your family’s future to chance. Contact us today so we can get you on the road to independence.

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Designating Beneficiaries in Blended Families

Whether you are in your first marriage or have remarried after a divorce, blended families are a common part of modern society. That being said, it is important to understand that blended families and subsequent marriages create important and unique issues when it comes to estate planning. This comes into play mostly with blended family beneficiary designations.

You may need to account for a prior spouse who is still caring for minor or disabled children, and also possibly make sure your current spouse and any children you had together – and any stepchildren – are also taken care of after you pass away. The good news is that estate planning can take all of these factors into account. This is true whether you are putting together your estate plan for the very first time or if you need to update your current estate plan due to a change in your circumstances.

Setting Up a Trust For A Blended Family

It is common for married couples to leave everything to one another in their wills, or list their spouse as the sole beneficiary of any assets that allow for this designation. The result is that if one spouse passes away before the other, the surviving spouse will own all of the assets left behind outright. While this may work for some families, when it comes to blended families this strategy may inadvertently disinherit children or spouses from a prior marriage.

One way to provide for a current spouse without leaving out children from a prior marriage is to place some or all of your assets in a trust that the spouse can use during his or her lifetime. Once the spouse dies, all of the property in the trust can go to the children from your current and prior marriage, or to other intended beneficiaries.

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Beyond Simple Beneficiary Designation

The plain and simple beneficiary designation on assets (like life insurance, bank and investment accounts, etc.) that allow for outright distribution to the surviving spouse can inadvertently wreak havoc on an estate plan when a blended family is involved. These complications can apply to a couple who has children from prior marriages, someone who remarries late in life, or someone on their second or third marriage and beyond.

For example, you may purchase a large life insurance policy and designate your current spouse as the sole beneficiary and pass away shortly thereafter. Since the beneficiary designation takes precedence over your estate planning documents, the proceeds of the life insurance will not be placed in that trust and will be distributed outright to your current spouse. If you had instead named the trust as beneficiary, you could have determined when and how the funds would be spent for the benefit of your heirs.

As an example, the funds could be used to provide support for your surviving spouse during his or her lifetime while also allocating a portion to help your children to pay for college, finance a down payment on a first home, and pay for a wedding, or start a business. The key is that the money can be available for your spouse, but not with unfettered control, and still available for your children.

Ensuring Your Wishes Are Followed

While you hope that a surviving spouse with honor your wishes even if they are not in writing, you may accidentally disinherit your children. Instead, a knowledgeable estate planner will use your trust as the centerpiece of your estate plan and make sure to coordinate and align the beneficiaries on your assets so that your intent will become the reality once you have passed away.

We can explain all of the options available to you and put together a plan and beneficiary designation that best suits your family’s needs. Contact us today to schedule a free consultation.

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Exploring 10 Different Types of Trusts in Las Vegas

Considering the myriad of trusts available, creating an estate plan that works can seem daunting.  However, that’s what we, as estate planning attorneys, do every day. We know the laws and will design a plan which addresses your specific situation.  

Here’s a look at the basics of ten different types of trusts in Las Vegas to provide a general understanding. There will not be a quiz at the end. All you need to do when we meet is share your goals and insight into your family and financial situation. We will design a plan that incorporates the best documents for your situation. 

Bypass Trusts

Commonly referred to as Credit Shelter Trust, Family Trust, or B Trust. Bypass Trusts do just that: bypass the surviving spouse’s estate to take advantage of tax exclusions and provide asset protection.  

Charitable Lead Trusts

CLTs are split-interest trusts, which provide a stream of income to a charity of your choice for a period of years or a lifetime. Whatever’s left goes to you or your loved ones.

Charitable Remainder Trusts

CRTs are split-interest trusts. They provide a stream of income to you for a period of years or a lifetime and the remainder goes to the charity of your choice.  

Special Needs Trusts

SNTs allow you to benefit someone with special needs without disqualifying them for governmental benefits. Federal laws allow special needs beneficiaries to obtain benefits from a carefully crafted trust without defeating eligibility for government benefits.

Generation-Skipping Trusts

GST Trusts allow you to distribute your assets to your grandchildren, or even to later generations, without paying the generation-skipping tax.

Grantor Retained Annuity Trusts

GRATs are irrevocable trusts. They are used to make large financial gifts to family members while limiting estate and gift taxes.

Irrevocable Life Insurance Trusts

ILITs are designed to exclude life insurance proceeds from the deceased’s estate for tax purposes. However, proceeds are still available to provide liquidity to pay taxes, equalize inheritances, fund buy-sell agreements, or provide an inheritance.

Marital Trusts

Marital Trusts are designed to provide asset protection and financial benefits to a surviving spouse. Trust assets are included in his or her estate for tax purposes.

Qualified Terminable Interest Property Trusts

QTIPs initially provide income to a surviving spouse and, upon his or her death, the remaining assets are distributed to other named beneficiaries. These are commonly used in second marriage situations and to maximize estate and generation-skipping tax exemptions and tax planning flexibility.

Testamentary Trusts

Testamentary Trusts are created in a will. These trusts are created upon an individual’s death and are commonly used to provide for a beneficiary. They are commonly used when a beneficiary is too young, has medical or drug issues, or may be a spendthrift. Trusts also provide asset protection from lawsuits brought against the beneficiary.

Which is the Best Option for You?

There are many types of trusts available. We’ll help you select which trusts, if any, are a good fit for you. Contact us today to schedule an appointment.

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