by sanch1_admin | Jul 25, 2019 | Interest
Planning for the future is not always an easy task and may have you confused and worried about whether you covered everything.
An estate planning lawyer can walk you through the entire process and help you plan for your future and the future of those in your will too.A study conducted in 2013 by HSBC found that US retirees expect to leave a sizable inheritance to their loved ones.
The study found that the average inheritance was about $175,000.While money is usually part of an inheritance, it is not the only thing that can be passed down to loved ones. Below, our estate planning lawyer in NYC will discuss some of the considerations baby boomers should keep in mind as they plan.
Health care needs
It should come as no surprise that the cost of health care continues to rise. With that said, it is wise to plan NOW for your health care future.
As you write your will, you can include long-term care costs that will help you reap Medicaid benefits and take care of assisted living or nursing home costs without completely dwindling your bank account.
Family Heirlooms
Everyone loves family heirlooms and you would be surprised to find out that most individuals would rather have keepsakes than money.
With that in mind, you want to make sure that personal keepsakes and your heirlooms are distributed the way you want them.
Often, estate attorneys will recommend that you speak with your children or family members and find out which items mean the most to them to help give you an idea of what they would cherish.
Special needs care
If you have a dependent who is special needs or disabled, it is important to have it spelled out clearly in your will what you want to happen such as their future care and assets.
One way to ensure your loved one will be well cared for when you are gone is to setup a special needs trust for them
by sanch1_admin | Jul 25, 2019 | Interest
Whether you have a life insurance plan now or you were planning to get one soon, our estate planning lawyer recommends that you do it sooner rather than later.
When thinking about a life insurance plan, you likely think of it as a means for your family if you were to pass in an unexpected death.
While this is one of the benefits, it is not the only benefit.In fact, life insurance policies are more than just cash when you pass away – they are an essential part to any estate plan.
STOP OVERLOOKING LIFE INSURANCE – GET AN ESTATE PLANNING LAWYER
You never know when you may need a life insurance policy and it is ALWAYS better to have one established and in place as opposed to needing one and being without it.
Below, our estate planning lawyer will discuss some considerations to keep in mind.
1. A life insurance policy is a great idea for young people as they secure their future. The money from the policy can be used to replace lost income should someone unexpectedly pass away. In addition, the money can be used to pay for college, take care of children, or even pay off a car loan or mortgage.
Life insurance that is purchased by someone young is a wonderful way to help secure their family’s future – just in case.
2. Life insurance money can be used to pay off any state or federal estate taxes that may have accrued or been owed by the deceased.
When you pass away, your heirs inherit your debt along with the inheritance. Without a life insurance policy, they will need to pay off the debt first. A good policy will help prevent this from happening and cover any debts owed.
3. You never know what unexpected adventures will come your way in life. If you have re-married, a life insurance policy is a good idea as it can help keep any disputes between your children, ex-spouse, and new spouse away.
One of the many ways that individuals can make the life insurance policy work for them is to name their children as the heir to their assets and place their new spouse as the beneficiary. This way, it is clear, and your wishes are being followed
by sanch1_admin | Jul 25, 2019 | Interest
Trusts are a great way for you to make sure that someone receives money or wealth that you want them to have. A trust is a type of legal arrangement in which the assets or property is held by a deemed third party. A trusts and estates attorney can assist you in navigating what a trust is and how to set one up.
Should you find yourself in a position where you are thinking about creating a trust, here are some common reasons why others create them:
- Avoid probate court
- Maintain control of assets
- Save money on estate or federal taxes
- Avoid a declination in federal benefits (i.e. SSI if you have a disable dependent)
A trust can accomplish a variety of goals that you have in mind and is a great idea for anyone who wants to protect the assets they wish to pass down.
If you would like to learn more about a trust or if you would like to schedule a consultation with our trusts and estates attorney at Morgan Legal Group PC, call our office today at 212-561-4299.
Trusts and Estates 101: Tell Me About a Trust
When looking at a trust, there are several components to it, which include:
- Grantor: this is the individual who sets up the trust
- Trustee: this is the individual(s) who are assigned to hold the assets or property
- Beneficiary: this is the individual(s) who will receive the assets or property within the trust
- Principal: this is the assets or property themselves, such as money, home, car, etc.
Often, one of the questions that trusts and estates attorneys see is, “when will the beneficiary receive the money?” The date of distribution for a trust is set at no longer than 80 years. The trust must have a date on which it finishes, and this is when the assets would be distributed to the beneficiary.
Another common question we receive is, “how do you get money out of the trust?” It is up to the trustee to determine when payments are made and what type of money comes out of the account. The trustee will also determine which beneficiary is to receive them as well.
A trust is an excellent way to safe harbor assets or property until the intended beneficiary can receive them. Assets can be added into a trust at any time. There are specialized trusts, which allow anyone to contribute to them as well, which is ideal in a situation where multiple family members want to contribute.
Get in Touch with a Qualified Trusts and Estates Attorney Today
Trusts can be complicated to navigate if you are not familiar with them; however, with the help of a skilled and qualified trusts and estates attorney, you can have one in place quickly and with little hassle.
As the guarantor to a trust, it is your responsibility to make sure there is a beneficiary and a trustee who oversees the account.
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