Articles Tagged with Revocable Living Trust

People often ask us to explain the difference between a revocable and an irrevocable trust. That’s a tough one because there are so many kinds of trusts and even irrevocable trusts can, within the Trust-300x225terms of the trust, allow certain things to be revoked or amended. But here’s our answer.

Most people who consider forming a trust like the concept of a “revocable” trust. The word “revocable” implies that you can amend, undo, change, alter, or revoke the trust. When someone hears that a trust is “irrevocable,” they often get concerned because that implies that things are rigid, fixed, inflexible, and control is lost.

The typical “avoid probate” trust is a revocable trust. There is no requirement that the typical “avoid probate” trust be irrevocable. Your home and other assets must simply be titled in the name of your trust when you die.

Not all of a deceased person’s property has to go through probate. If the property had a properly designated beneficiary, such as an insurance policy, an IRA or a 401(k), those do not go through probate.
Additionally, because of Wisconsin’s marital property law, everything owned jointly by a married couple easily transfers over to the surviving spouse. However, if real estate is only in the deceased spouse’s name there may need to be a probate. Continue reading

Over half of American adults and approximately 92 percent of adults under the age of 35 have not written a will. Most assume they do not need a will because any assets left behind will automatically be inherited by family members. Although assets may be distributed according to state intestacy laws, the process can be lengthy. With proper estate planning, however, you Designating a Guardian for Your Childrenmay be able to avoid placing any additional emotional or financial burden on your family after your death.

It is a good idea to create a will once you begin acquiring assets or start a family. In addition to designating how your assets will be distributed upon your death, your will designates an executor who will manage them until they are distributed. If you are a parent, you should also select a guardian who is likely to survive until your minor children reach the age of majority in the event both parents pass away.

Other useful estate planning documents include a durable power of attorney and a healthcare proxy. A durable power of attorney will allow your designee to make financial and legal decisions on your behalf if you become unable to do so. Similarly, a healthcare proxy allows a designee to make medical decisions for you if you become incapacitated and cannot do so yourself. By designating a power of attorney or healthcare proxy, you may save your family from being required to take the matter to court in the midst of an unexpected healthcare crisis.

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When talking about families and inheritance, studies show that while financial assets are important, family values and family history take the driver’s seat. Most people treasure family stories and life lessons regardless of their age, financial situation, or race. A simple case would be comparing the reactions of siblings on two topics: a family legend or a new car. Chances are, the stories of the new car will stop after one month while the family stories will continue to be told and enjoyed for decades. This is because family stories, family values, and life lessons learned by members of the family are integral to its legacy.

safeDepositBoxA very recent study though shows that millennials think of inheritance as a “bonus” but expect to get that bonus – and are expecting large sums of up to $100,000. However, they are willing to lower that figure because many parents are already helping their adult children financially with student loans and other expenses.

An article published on www.Marketwatch.com reported that one in three Americans will “blow their inheritance” because they are not prepared to handle it. In fact, those who inherit money tend to spend it quickly and one-third end up with negative savings two years later.

Parents have a responsibility to teach their children money management so any windfall they get will be spent wisely. Inheritance, while a “bonus,” should not be just “fun money.” In today’s economy, a $1,000,000 inheritance does not even guarantee a comfortable retirement for a couple beyond their fifties. Continue reading

Traveling? The Eight Estate Planning Must-Dos before Departure

airplaneIn 2014, the World Health Organization revealed that globally, there were 1.24 million road deaths, 1,320 deaths from airplane crashes, 78 deaths from train crashes, and over 4,000 deaths from motorcycle accidents. Statistically, though, motorcycle travel is the most dangerous, while train and air travel are safer.

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If you are a farmer or a rancher, you are hardworking and dedicated. Your farm or your ranch is more than just a way to make a living — it is your legacy. You have spent your life building something that you can be proud of and that you want to pass down to your children so that they can preserve what you have built and they can continue to provide for themselves and their families. Unfortunately, if you do not make an estate plan, your land and your assets may be liquidated cutting your legacy short and ending your family’s unique lifestyle choice.
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Estate planning is important for everyone but especially for those who own their own business such as farmers and ranchers. If you avoid making or updating an estate plan, your assets will be subject to state intestate laws. Instead of you deciding how your estate will be settled upon your death, the courts will make that decision for you. Below are three common estate planning mistakes farmers and ranchers make and how to avoid them.
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Yes, they fit the broad definition of a blended family, but the story of the “lovely lady” and a “man named Brady” was, of course, simply that. A story. When turning off the TV and looking at today’s blended families, a first observation is how very unique and different they all are. (Or as one estate planner remarked: “If you’ve seen one blended family, you’ve seen one blended family.”)
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A coherent strategy for the transfer of assets is, of course, crucial to the success of any estate plan. But the best-laid plans will fall far short of expectations if the trusts so carefully drafted are never properly funded.

TrustIf the trust is the car, the funding is the fuel. Without gas in the tank, that beautiful sedan with the precision engine is just metal on four wheels. It’s not going anywhere. The same holds true for an estate plan . Until it’s properly funded, the “plan” is just a plan – a plan that can’t be executed. Like the car with the needle on empty, it’s not going to take you anywhere.

With basic wills, most of the funding happens after death through the probate process. By contrast, a trust can – and should – be funded while the trust maker is still alive. With proper trust funding we can assure that the client’s designated assets will be governed by the terms of the trust agreement. Without it, assets not properly transferred to the trust will generally fall to probate.

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estate planEstate planning is an important topic for everyone. Accidents and serious medical conditions can arise suddenly and it is important to be prepared. The need for effective end-of-life planning impacts everyone, even the rich and famous. Celebrities help highlight the need to prepare your Wisconsin estate planning documents.  Take for example Stieg Larsson, author of the highly successful Girl With the Dragon Tattoo trilogy. Hollywood’s recent movie adaptation of the novel grossed more than $140 million. Unfortunately, Larsson died suddenly at age 50 from an unexpected heart attack. The author never prepared a living trust or will. Consequently, a lengthy legal battle over his $40 million estate ensued between his girlfriend of 32 years, with whom he shared a residence, and his family. Larsson’s estate was eventually awarded to his relatives.

Years later, Larsson’s family is still engaged in a court battle with his girlfriend over an unpublished novel that is allegedly in her possession. Larsson could have avoided the legal battle between his loved ones simply by preparing a living trust or will that clearly expressed how he wanted to divide his assets. By creating your Wisconsin living trust or will, you decide who receives your property and other assets upon your death. If you fail to provide for your loved ones in a trust or will, Wisconsin courts will distribute your estate according to Wisconsin intestacy laws, which may exclude certain people you would have wanted to include.

It is also crucial to create a health care power of attorney and a financial power of attorney well before any medical issues arise. If you are unexpectedly incapacitated, a health care power of attorney allows the individual you select to make any necessary medical decisions for you without heading to court. Making end-of-life medical and financial decisions can be tough on family members and often results in fighting. For example, although the late Etta James prepared a financial power of attorney that designated one of her sons as her decision-maker in 2008, her husband of 42 years challenged the document and claimed it was created after she became incompetent from dementia. Eventually, her husband and her sons reached an agreement regarding James’ care, but this does not always occur. You can protect yourself and your loved ones from legal battles by appointing medical and financial decision-makers well ahead of unexpected medical situations.

1221950_to_sign_a_contract_1 sxchu notify.jpgEstate planning is an essential tool to ensure your money and other assets are transferred pursuant to your wishes upon your death. If you are bequeathing money to a loved one in your will, it is important to keep in mind that large sums of money can be quickly and easily squandered. Financial advisers who work with individuals who suddenly receive a windfall say the money often vanishes quickly. Proper estate planning and the use of wealth transfer tools can ensure the financial well being of your family is protected. Continue reading