When you visit a savings institution in the United States, you'll often see a "Member FDIC" seal on the door. The Federal Deposit Insurance Corporation (FDIC) was established in 1933 as a response to the Great Depression's bank runs. The FDIC provides each person with up to $250,000 of insurance for funds in that bank in case of bank failure. However, applying this limit to trusts has been complicated until recently, as trust beneficiaries' names had to appear in the bank's records, and … [Read more...] about Trusts Can Help Protect from Bank Failure
Complete Asset List is the Starting Point
A complete list of your assets is an essential starting point in making any decisions about those assets, whether financial portfolio decisions, or estate planning decisions. Without a complete list of your financial assets, a financial planner cannot know how to change your assets to achieve the proper asset allocation to meet your risk, return, and diversification objectives. Without a complete list of all of your assets, your estate planning attorney cannot advise … [Read more...] about Complete Asset List is the Starting Point
What to Do after a Loved One Dies
The death of someone near and dear can be a stressful and confusing time. Your life is disrupted emotionally and logistically by the loss and your grief. Who will take care of everything? Who has what responsibilities? Let’s look at the different roles involved after someone’s death: Executor—The Executor or Executrix, also known as the Personal Representative, has the duty of safeguarding and collecting and managing assets which the decedent owned at death, in accordance … [Read more...] about What to Do after a Loved One Dies
Why Do So Many People Use Living Trusts?
The most commonly utilized estate planning device other than a last will is the revocable living trust. If you have always assumed that you will be using a will, you should understand the benefits that living trusts provide so you can make an informed decision. Consolidation of Assets When a will is used, the executor is the estate administrator. Imagine the situation that the executor will step into after the passing of the testator. Everything that the deceased party owned will be … [Read more...] about Why Do So Many People Use Living Trusts?
What’s Probate and Should I Care?
“Probate” is one of those words that we all have heard, yet few of us really know what it means. We know it has something to do with dying, but that’s about it. When an individual dies owning assets, there is a process to change the title from the (now deceased) owner, to the new owner. This process is called “probate.” The new owner to whom the assets are passed might be a creditor, a beneficiary under a Will, or (if the decedent dies without a Will) a beneficiary from a slate of “intestate … [Read more...] about What’s Probate and Should I Care?
What’s Important in Your Life?
Facing difficulties in life sharpens our focus. When tragedy strikes, we recognize what’s important in our lives: Our family, our friends, and our values. Henry Wadsworth Longfellow, the famous 19th century American poet, said “Into each life some rain must fall.” We have all had “rain” in our lives. Our tragedies typically are quite personal: the death of someone close to us, a life-threatening illness, or a violent crime. Sometimes our tragedies are shared by countless others: … [Read more...] about What’s Important in Your Life?
To My Dog, Lucky, I Leave $10,000
Since the dawn of time, pets have held an important place in our hearts and our homes. Ancient Egyptians used to mummify faithful pets and have them buried with themselves. This was a dubious honor for the pet. Even in modern America, people have attempted to take their pets with them. For example, Mary Murphy died in 1979, leaving $200,000 to Pets Unlimited, a shelter for pets. However, the more controversial provision in her Will was her command that her pet collie, Sido, be euthanized. The … [Read more...] about To My Dog, Lucky, I Leave $10,000
Things to Know About Trust Administration
If your time as a trustee has come, you will be faced with a variety of responsibilities in the near future. As the days, weeks, and months go by, it is imperative that you complete all the necessary tasks at the appropriate time. You are not expected to get to work the day that the person passes on. However, you don’t want to put this off too long either. Once you have everything in order, once you are ready to take on this responsibility, it is time to get started. Tip: if for any … [Read more...] about Things to Know About Trust Administration
Gifting to Children
Most people with substantial assets are interested in benefiting those around them. The fruits of success are best when shared with those close to you. In 2022, each person can give up to $16,000 per year to any other person without any gift taxation. It’s important to note that you can give $16,000 to each and every person you wish. With most friends and relatives, this is not much of a problem. However, gifting to minor children presents unique issues. Minors do not have the legal … [Read more...] about Gifting to Children
What is a Revocable Living Trust?
If you’re in the process of creating your first estate plan or updating what you already have in place, you may be familiar with a revocable living trust. But if you’re not, there’s no better time than now to learn more. Here’s how we describe a living trust on our website: A trust is a relationship wherein property is held by one party for the benefit of another. A trust is created by a Settlor (also referred to as a Maker or Grantor), who transfers property to a Trustee. The Trustee … [Read more...] about What is a Revocable Living Trust?
