Advanced Estate Planning and Trusts
In advanced estate planning, setting up a trust may be an option depending on your situation. A trust is a legal entity in which your assets can be managed by a Trustee. A Trust can be created while you are living to manage your assets, or to assist your heirs in managing their inheritance after your death.
One type of trust, a Living Trust, is established while you are living. Typically, a person who creates a living trust will re-title his or her assets into the name of the living trust and will retain complete control of it. Your trust will provide instructions on how your assets are to be distributed when you die.
An Irrevocable Life Insurance Trust, is created specifically for the purpose of owning your life insurance policy. This will hold the policy outside of your estate and keep the proceeds from being taxable to your estate. The proceeds can then be used to provide your estate with liquidity to pay estate taxes, pay off debts and final expenses, and provide income to named beneficiaries.
Last Will and Testament
If you live in Pennsylvania, a A Last Will & Testament may be essential in your estate planning, even if you have a trust or other advanced estate plan. All adults should have a Will to specify his or her intentions regarding the estate upon death. A well-crafted will expresses your last wishes, instructing how your estate should be distributed and divided as well as choosing an Executor or Executrix who will be in charge. It also ensures clarity and assists in conflict avoidance…