What Is Estate Planning?
What is Estate Planning?
Estate Planning is making plans to leave property to your spouse, your children or other beneficiaries at the time of your death. The traditional estate plan simply leaves your property to your beneficiaries without any control over what the beneficiaries do with the property later.
If you have a child who will never be able to live independently without assistance, it is important to plan for the care of your child after your death. Depending on your wishes and your child's limitations, you have several ways to plan this protection in your will. The least restrictive alternative is to name an advisor for your child. This happens many times again but without resolution but good things could come out of it.
The Trusts of Estate Planning
Other estate planning tools that are useful in insuring financial security for your child is a trust . A trust names a trustee who manages property for your child and pays the child's expenses or gives him or her money according to guidelines specified in your trust. A support trust may be instituted while you are still alive. The good advantage of this type of trust is that there will be no interruption in the financial support of the disabled child while your estate is being probated. But this type of trust can also be set up in your will, which means it will not go into effect until you are deceased.
Your trust must be flexible to account for future changes in both the needs and abilities of your disabled child and the statutes and regulations that may affect him or her. Your trust should be written to allow the trustee wide discretion to use assets in the trust and income from those assets in different ways at different times to meet your child's changing needs.
Another type of trust is the special needs trust, also known as supplemental needs trust. This type of trust is used when a child is receiving or may receive need-based governmental benefits. Mainly to qualify as a special needs trust the trust document must state that the principal and income are to be used only to provide extra and supplemental care, maintenance, support and education in addition to the benefits the child otherwise receives as a result of his or her disability from any local, state or federal government, or from private agencies. However if wording is in the trust, the state will claim the resources in the trust to pay for the cost of maintaining the disabled person.
Be sure to read your states laws and advice on this matter. All will go well without family issues if planning is right! Visit FirstGov.Gov for more information for better understanding of your estate planning options. Estate Software >> Estate Planning >> Estate Planning Forms >> Estate Planning Trust >> Living Trust Probate >> Missouri Living Trust >> Wills >> Probate Attorney >> Probate Tax >> Oregon Probate Law >> Vancouver Bc Real Estate >> Trust Lawyers >> Trusts Law |
