Consider Your Alma Mater in Your Estate Planning
January 3, 2008 | 1 Comment
Think close to home and close to your heart. Planned gifts provide an individual with the opportunity to combine their personal charitable interests with long-range financial and estate planning.
Making a charitable gift to your Alma Mater, be it your college or highschool, is a satisfying and fulfilling way for you to personally see the benefits of your philanthropic efforts.
Charitable Remainder Trusts. In the right circumstances, this plan can increase your income, reduce your taxes, unlock appreciated investments, rid you of investment worries and ultimately provide important support.
You can fund a Charitable Remainder Trust with cash or appreciated property. You received income from assets for your lifetime or for the lifetime of a named beneficiary, qualify for a charitable deduction, and save capital gains and estate taxes. After your lifetime and/or that of a loved one, the trust assets are distributed to your Alma Mater.
Charitable Lead Trusts. Make a donation now while reducing the tax costs for your heirs in the future.
In a Charitable Lead Trust, you transfer assets to a trust that makes payments to your Alma Mater for a specified number of years, after which the assets are transferred back to you or your heirs. The Charitable Lead Trust allows you to pass assets on to your children and grandchildren with little or no estate tax.
Charitable Gift Annuities Planned gifts that pay
A Charitable Gift Annuity is a legal contract between you and your Alma Mater that allows for assets to be transferred to your Alma Mater. In exchange, your Alma Mater agrees to pay you a lifetime income. You get an immediate tax deduction and a portion of your annual income us tax exempt. Pay-out rates can be attractive and estate taxes and probate costs are eliminated. After your lifetime and/or that of a loved one, the remaining assets are distributed to your Alma Mater.
For more information contact your Alma Mater’s Office of Development and/or Alumni Giving.
Living Trusts vs. Wills - Part 5 (final)
December 17, 2007 | 1 Comment
It seems that a lot of you have enjoyed the series on living trusts vs. wills from viewing the amount of traffic that these posts have seen. I hope that all of my subscribers will enjoy the final post in this series. Soon I’ll have the entire list up on the resources page so that you can have everything in one place and be able to go there and download the full list in word format if you’d like.
I want to add that this list isn’t a conclusive list but just some things that you should keep in mind when doing your estate planning. As an estate planning lawyer I highly believe that living trusts are among the most efficient and best estate planning instruments available. However, they are right for everyone. When making important estate planning decisions that will effect your family for decades make sure to talk to your lawyer.
Okay, with that out of the way. Here is the conclusion to the list.
Living Trusts vs. Wills - Part 5 (final)
19. Is a living trust expensive?
Not when compared to all the costs of court interference at incapacity and death. How much you pay will depend on how complicated your plan is.
20. How long does it take to get a living trust?
It should only take a few weeks to prepare the legal documents after you make the basic decisions.
21. Should I have an attorney do my trust?
Yes, but you need the right attorney. A local attorney who has considerable experience in living trusts will be able to give you valuable guidance and peace of mind that your trust is prepared properly. In some states, qualified paralegals can now also prepare trust documents; however, they cannot give you legal advice.
22. If I have a living trust, do I still need a will?
Yes, you need a “pour-over” will that acts as a safety net if you forget to transfer an asset to your trust. When you die, the will “catches” the forgotten asset and sends it into your trust. The asset may have to go through probate first, but it can then be distributed as part of your living trust plan.
23. Is a “living will” the same as a living trust?
No. A living trust is for financial affairs. A living will is for medical affairs; it lets others know how you feel about life support in terminal situations.
24. Are living trusts new?
No, they’ve been used successfully for hundreds of years.
25. Who should have a living trust?
Age, marital status and wealth don’t really matter. If you own titled assets and want your loved ones (spouse, children or parents) to avoid court interference at your death or incapacity, consider a living trust. You may also want to encourage other family members to have one so you won’t have to deal with the courts at their incapacity or death.
26. Summary of Living Trust Benefits
- Avoids probate at death, including multiple probates if you own property in other states
- Prevents court control of assets at incapacity
- Brings all your assets together under one plan
- Provides maximum privacy
- Quicker distribution of assets to beneficiaries
- Assets can remain in trust until you want beneficiaries to inherit
- Can reduce or eliminate estate taxes
- Inexpensive, easy to set up and maintain
- Can be changed or cancelled at any time
- Difficult to contest
- Prevents court control of minors’ inheritances
- Can protect dependents with special needs
- Prevents unintentional disinheriting and other problems of joint ownership
- Professional management with corporate trustee
- Peace of mind
ABA Releases it’s Free Estate Planning Guide
December 11, 2007 | Leave a Comment
What should everyone in Memphis and Mississippi look at before going to their estate planning lawyer? The new ABA Estate Planning Guide. It’s a great source of information for all of your questions about wills, trusts, power of attorneys and probate both for here in Memphis, Tennessee and Mississippi.
I’ve included a link to each chapter that you can click on to download and view.
Ch. 1: Getting Started
Ch. 2: Transferring Property without a Will
Ch. 3: Making a Will
Ch. 4: Trusts
Ch. 5: Living Trusts
Ch. 6: Common Estate Planning Situations
Ch. 7: Special Considerations
Ch. 8: Death and Taxes
Ch. 9: Changing Your Mind: Changing, Adding to, or Revoking Your Will or Trust
Ch. 10: Choosing the Executor or Trustee
Ch. 11: Planning Now to Make Things Easier for Your Family
Ch. 12: When You Can’t Make the Decision: Living Wills, Powers of Attorney, and Other Disability Issues
I’d like to give thanks to Attorney David Goldman over at floridaestateplanninglawyerblog.com for bringing this to my attention.
