A lot of people think that estate planning is a term that is used to describe the creation of a will. In fact, there are many ways to facilitate postmortem asset transfers. You do not have to settle for an imperfect solution and hope for the best. There are a lot of tools in the estate planning toolkit, and they provide targeted solutions. With this in mind, we will look at four scenarios that can be effectively addressed with the proper planning.
Many seniors experience loneliness late in their lives. They no longer have regular interactions with coworkers, and they have fewer social opportunities. In some cases, a person will be widowed, and this contributes to the dynamic as well.
There is no substitute for a loved one or friend, but a pet can make a world of difference according to experts. If you have a dog or a cat, you have a dependent that is relying on you for everything. You have a renewed sense of purpose, and in general, pet ownership can elevate your mood on a consistent basis.
Of course, there may be longevity concerns, but there is an estate planning solution. A pet trust can be utilized to set aside resources to care for a pet if it becomes necessary. The trustee that is named will be legally compelled to follow the instructions in the trust declaration. They would make sure that the pet is provided for in accordance with the wishes of the grantor of the trust.
A human beneficiary that is named in the trust would inherit any remainder that may exist after the passing of the pet.
Remarriage After Divorce
If you are getting remarried as a parent, you may be concerned about the inheritances that you intend to leave to your children. At the same time, you want to make sure that you provide for your new spouse appropriately when you are devising your estate plan.
This can be addressed through the utilization of a qualified terminable interest property trust. To implement this strategy, you fund the trust, and you name a trustee. If you die first, the trustee will distribute the trust’s earnings to your surviving spouse. They can also benefit from assets that are owned by the trust.
Your surviving spouse would be comfortable, but they would not be able to change the terms of the trust. After their passing, your children will inherit the assets that remain in the trust.
Let’s say that you are in a position to bequeath a life-changing amount of money to a young family member. Under these circumstances, you may have concerns. What if the inherited wealth removes their motivation?
An incentive trust can provide an answer in these situations. As the name would suggest, the beneficiary will receive distributions as long as they comply with certain terms that you dictate in the trust declaration. For example, the trust could match every dollar that is earned on the job by the beneficiary.
Special Needs Planning
Many people with disabilities rely on Medicaid and Supplemental Security Income (SSI). These are need-based programs, so you are ineligible if you have significant assets in your name. With this in mind, if you leave a large direct inheritance to someone that is in this position, they could lose the benefits.
To preserve them, you could make the person the beneficiary of a supplemental needs trust. They would not have direct access to the resources, and they would not own them in a legal sense. As a result, benefit eligibility would not be impacted. However, the trustee that you name would be able to use the assets in the trust to improve the beneficiary’s quality of life in many different ways.
We Are Here to Help!
As you can see, there is an appropriate response to a wide range of different scenarios. For this reason, personalized attention is key. This is exactly what you receive when you choose our firm.
If you are ready to set the wheels in motion, you can schedule a consultation at our Memphis, TN estate planning office if you call us at 901-763-2500 or 866-997-6325. To send us a message, fill out our contact form and will get back in touch with you promptly.
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