Estate Planning
You would be surprised at the number of people who don't have a Will, but what is even more remarkable is how many people have a Will and think that it protects and preserves their assets and wealth for their heirs.
Revocable Living Trusts
With a Living Trust, you are in complete control of all your assets. You can be the sole trustee or there can be more than one trustee such as you and your spouse. You designate who your beneficiaries are, what they will receive and how they will receive it. You can also designate another trustee to take immediate control of your trust upon your death, eliminating the need for probate and any other court involvement.
Pour Over Will
A Pour Over Will takes your assets after death pours them over into your living trust. Assets like furniture, artwork, jewelry - things that don't normally carry a title, would go into the Pour Over Will. By assigning these assets to the Living Trust or having the Pour Over Will pick them up, we have an organized method of distributing assets to heirs while avoiding probate.
Durable Power of Attorney
A Durable Power of Attorney is a document designating an individual, which can be a family member or friend, to manage your assets or your healthcare needs in your absence. Should you become incapacitated then the individual you have chosen would automatically be able to manage your assets until such time as you were able to do this yourself once again.
Life Insurance Trusts
Many people do not realize that the value of their life insurance upon their death is a taxable event. With a Life Insurance Trust, your insurance policy becomes an asset of your trust and the premium to be paid upon your death would be designated as "gifts." Upon your death the proceeds of the life insurance would then go tax free to your children and you could also provide for your spouse and other family members as well.
Children's Trusts
A Children's Trust can be set up to gift part of your estate to future generations. This can be done while still maintaining some control over how your children will be able to spend that money. With a proper trustee handling the wealth, you can avoid having these funds disappear or have them fall into the wrong hands, and goals like college, healthcare, and basic support can be achieved.
Steven Sears, CPA, Attorney
18 Truman ~ Irvine, CA 92620
Phone (949) 262-1100 ~ Fax (949) 262-1202