We introduced you to Jane and her biological children, Joe, Mary, and Tony. Jane’s father, the children’s grandpa, bequeathed a sizable estate to her. After Jane and the children’s father split, and Jane remarried Harry, who had three children of his own, we started to consider the possibility that Joe, Mary, and Tony might be unwittingly disinherited if Jane died before Harry. We witnessed how Jane’s family riches may disappear, cutting her children off from their grandfather’s legacy and putting the money in the hands of another, unrelated family – Harry and his children, and, sadly, Harry’s creditors.
The good news is that this tragic event does not have to occur. Excellent and expert estate planning may safeguard Jane’s family and guarantee that her fortune is finally passed to her three children and, if suitable, to their offspring. Jane should consult an expert estate planning attorney to ensure her desires are reflected in her estate plan.
What will Jane’s estate plan entail? It will be a trust-based plan, which means that Jane’s wealth/property will be transferred into a revocable living trust throughout her lifetime. This trust will enable Jane to control her money and define how and when the assets will be transferred to the beneficiaries, her children. Jane can set up this legal arrangement so that the trust assets remain accessible during her lifetime while naming who the remaining assets will pass to after her death, especially given her complicated situation, which includes a second marriage and children from multiple marriages.
Jane may even set up a spousal maintenance trust to care for Harry if she dies. To generate income for Harry, her trust may entail the establishment of a Qualified Terminable Interest Property (QTIP) trust. Upon Harry’s death, the QTIP assets will be distributed to Jane’s specified beneficiaries, which include her three children. Jane may even leave money to Harry’s children, but only in the amount and way she chooses. Jane has kept control of her inheritance, her father’s legacy has been handed on to his grandchildren and their children, and the family money has remained in the family. One may argue that it is Jane’s responsibility to carry out her father’s desires and that drafting her own purposeful and careful estate plan does
Jane’s estate preparation has resulted in extra excellent news. Since trusts often skip probate court processes, her beneficiaries may have access to these assets sooner than if her assets were passed through a will. There are also possible tax benefits that might be put into Jane’s trust contract, enabling her children and heirs to decrease or postpone payment of any inheritance tax that Jane’s estate may owe.
Building trust may provide peace of mind, knowing that the care you’ve given to the people and things you care about will continue. Understanding which trust suits your requirements and where to begin may be intimidating. We provide essential information to assist you in your financial and estate planning journey. Please let us know how we can assist you.