A recent post here discussed the generation-skipping trust and how it may be beneficial to those engaging in the estate planning process. This is just one of the many trust types available to those who create estate plans. Each trust type has its own benefit, and one or a combination of a number of trusts can help bring a vision for an estate plan into reality.
As we have discussed previously on this blog, there are many estate planning vehicles that can be utilized to dictate how an individual's assets will be distributed upon his or her death. While wills are quite common, trusts can, in some instances, be much more effective when used in combination with a will. There are a wide variety of trust types available to estate planners, each serving its own purposes and carrying its own benefits. Knowing the ins and outs of each trust is critical to developing a holistic and effective estate plan.
Last week on the blog we discussed the estate of famed movie star Burt Reynolds and how he utilized a trust to protect his assets for his son. Although it may seem a bit unconventional to write someone out of your will like Burt Reynolds did to his son, it can serve a purpose. In fact, there are a number of decisions you can make during the estate planning process to protect yourself, your assets, and your heirs and beneficiaries.
Many of you probably heard about the recent passing of acting superstar Burt Reynolds. While news stories are peppered with remembrances of his best film roles and his contributions to Hollywood, some reports are shining a light on another aspect of the actor's life: his estate planning.
There are a number of legal vehicles that you can use to better position your estate for distribution upon your passing. One effective way to save money on taxes and increase an estate's income is to create a charitable trust. This type of trust isn't tax exempt and is meant to benefit one or more charities. However, the assets in a charitable trust can be subjected to a charitable contribution deduction, which can significantly decrease the size of a taxable estate.
Estate planning is often viewed as the process through which a plan is devised to address property distribution upon one's death. While this certainly makes up a large portion of estate planning, dealing with assets is not the only matter that needs to be addressed. As part of their estate plan, California residents should also think about what they need to do in order to ensure that they can afford long-term care costs, should the need arise.
Recently on the blog we discussed the blind trust. This type of trust is just one of the many trust options available to those who engage in estate planning. Fully understanding the benefits of each type of trust is critical to allowing an individual to make fully informed decisions with regard to what is best for them, their estate and their heirs.
We've spent a considerable amount of time on this blog discussing the various trust options available to Californians. Deciding on trust options that are right for you can be critical to the success of your estate plan, including the financial well-being of your heirs and the trust beneficiaries. This usually means that you and your heirs want to keep a close eye on how these trusts are managed, but sometimes that's not in your best interests. Sometimes, in fact, it might be wise to have absolutely no idea about how a trust is being managed.
Sacramento readers of this blog are familiar with the basic concepts of estate planning. They also likely recognize the important role that trusts can play in this planning process. Depending on one's unique set of circumstances, specific types of trusts can prove beneficial in furthering one's goals with regard to asset distribution upon death.