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- You should consider using this type of trust if you are looking to protect against long-term care costs and estate taxes. But understand, just like the revocable trust, not every client needs this. Who does not need this trust? Someone who has: A large net worth and can self-insure against long-term care expenses.
www.kiplinger.com/retirement/estate-planning-who-needs-a-trust-and-who-doesnt
- The tax cuts are temporary. The $11 million federal estate tax exemption amount is scheduled to drop back to the $5 million range in 2026. If your estate is not subject to estate taxes now, it may be in a few years.
- Your state matters. Your state may impose its own state estate tax. This is true of Massachusetts which has a $1 million estate tax exemption. If you own real estate in another state, you may be subject to that state’s estate tax laws as well.
- Avoiding probate. If you fund your trust during your lifetime, you will avoid probate. Avoiding probate means your family will not have to go to court to authenticate your will after your death in order to access your assets.
- Planning for incapacity. Another benefit to funding your trust while you are alive is that your successor trustee can access the assets for your benefit if you become incapacitated.
Mar 6, 2024 · Four Reasons Retirees Need a (Revocable) Trust; Four Reasons You Don’t Need a (Revocable) Trust; Do You Have the Five Pillars of Retirement Planning in Place?
Oct 19, 2023 · A trust is a fiduciary arrangement that specifies how your assets are to be distributed, usually without the involvement of a probate court. They can be structured to take effect before death, after death, or in case of incapacitation.
Jun 11, 2024 · Putting a house in trust can ensure your home transfers to beneficiaries of your choice when you die. It also helps avoid probate and keep your affairs private.
- See where your money goes. Most people pass down money through a will. What fun is that? You can't see how your money's used or the benefit it has on family members.
- Do whatever you want with the assets. One of the benefits of a trust is that the settlor can instruct how his or her money should be distributed. A gift, which is another way people pass down money, doesn't come with any strings attached, so the people receiving the money can do whatever they want with it.
- Avoid probate. Assets in a trust are not subject to after-death probate taxes. While the trust will have to pay capital gains tax on investments or property that gains in value (either every 21 years or when an asset is sold), no other taxes have to be paid when the settlor dies.
- Pass down more than just money. While most trusts contain investments or cash, you can put pretty much anything in a trust. One common asset that gets the trust treatment is property, like a cottage.
Jun 11, 2019 · The first step is to determine whether you will fund a trust now, make periodic gifts over time to the trust or wait to fund it at your death. The most common choice is to use a revocable...
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Aug 16, 2018 · Below are nine things you can do with a living trust. Reduce estate taxes. If you are married, the trust can provide for estate tax savings.
