Can Real Estate and Out-of-State Properties Be Included in the Trust?
Trusts have become an essential tool in estate planning, allowing individuals to manage their assets effectively while ensuring their wishes are honored after they pass away. A common question that arises in the context of trusts is whether real estate, particularly out-of-state properties, can be included in them. What is a Trust? In a fiduciary […]
What Assets Can Be Included in a Revocable Living Trust?
A revocable living trust is a vital estate planning tool that allows individuals to manage and protect their assets during their lifetime and ensure a smooth transfer to beneficiaries upon their death. Unlike other types of trusts, a revocable living trust offers flexibility as it can be altered or revoked at any time by the […]
What Are Fiduciary Duties?
If you have been assigned trustee of a trust administration, you now have fiduciary duties to follow. Fiduciary duties describe the duties to act in someone else’s best interests. In this case, a trustee must always act in the best interests of the trust and its beneficiaries. The primary fiduciary duties a trustee has are […]
What is a Grantor Retained Annuity Trust (GRAT)?
A grantor retained annuity trust (GRAT) is an estate planning tool used to minimize taxes on large gifts between family members. In a GRAT, an irrevocable trust is created for a specific period of time, and an annuity is paid to the grantor every year. When the trust expires after the last annuity payment is […]
What is a Family Limited Partnership (FLP)?
A family limited partnership (FLP) is a business partnership between family members. Each family member puts in money to run a business project. Typically, every family member who wishes to participate buys units or shares and can profit from the business. Details of a family limited partnership are outlined in a partnership operating agreement that […]
What is Estate Tax?
Estate tax is a tax paid on the total value of a deceased person’s estate. The assets that can make up an estate include money, real estate, property, financial accounts, collectibles, and other assets. This value is calculated after the person passes away, and other factors like debts or credits can reduce the estate’s total […]
What Are the Biggest Challenges After Receiving a Sudden Windfall?
Receiving sudden wealth can come from many different sources. From winning the lottery to inheriting money from a distant relative, a sudden windfall can bring as many challenges as it does opportunities. Many people who come into sudden wealth aren’t sure how to manage it, which can lead to that money running out much faster […]
What is a Dynasty Trust?
A dynasty trust is a type of long-term trust created to pass wealth down to multiple generations. The main advantage of a dynasty trust is that it can avoid transfer taxes, like the estate tax, gift tax, and generation-skipping transfer tax (GSTT). Individuals choose to create dynasty trusts to pass on their wealth for many […]
What is a Living Will?
Despite their similar names, a living will and a last will are two vastly different legal documents. A living will, also known as a healthcare directive, dictates an individual’s wishes about the medical treatments they would like or would not like to receive. For instance, an individual could specify that if they become brain dead, […]
What is a Testamentary Trust?
A testamentary trust is a trust created in a last will and testament. The creator of the trust, also called the grantor, leaves instructions in their will about how their assets should be managed by a trustee and distributed to beneficiaries. After the grantor’s death, the trust establishes itself, hence the name “testamentary.” Many individuals […]
