DO I NEED A TRUST??
By: Daniela Lungu
Most people when faced with this question, or whether they have an "estate" get a blank look in their eyes, and say no, but would be surprised to learn that they do have an estate and would benefit from this important service.
General Rule: If you have an estate valued at over $100,000 you should have a trust.
"Estate" Includes:
- Value of all Real Property Interests
- Time Shares
- Boats, Cars, Other Personal Recreational Vehicles
- Business interests including partnerships, sole proprietorships, corporations, LLP and LLC interests
- Value of all Brokerage, Corporate Stocks, Corporate Bonds, Mutual Funds, Treasury Bills, and Savings Bonds
- Retirement Assets including: IRA, Keogh, 401(k), 403(b)Qualified Plan, Employer Plan, Deferred Comp, Annuity, Pension Plan, Roth IRA,
- Value of all Insurance Policies - Whole and Term
- Amounts in Checking, Savings, CD's, Money Market Accounts
- Value of Notes and Deeds of Trust
- All other personal property including clothing, furnishings and other household goods.
Reasons for Planning:
- Avoiding probate
- Minimizing estate taxes
- Self-directed distribution of wealth to heirs
- Proactive management of health and assets in the event of incapacity.
If you have considered any form of planning for the future, now is the time to speak with an Estate Planning Attorney to incorporate a Living Trust into your plan. Living Trusts allow you to control the transfer of your property and assets to your intended beneficiaries, assist in planning with significant tax advantages, and more. Using a properly prepared and funded Living Trust ensures that your beneficiaries can avoid the unpleasant and lengthy task of probate, which often fractures family relationships.
The preceding should not be considered tax or legal advice. Please consult with your financial and legal advisors for information appropriate to your specific circumstances.
