Say you have an heir who may spend your money on things that you do not support. Can you create a trust that restricts how they can use their inheritance?
You may already know that Arizona does not have a state-level estate tax, setting it apart from other states that sometimes level some fairly heavy taxes on people when they pass away.
If you look up the term "spendthrift" in a dictionary, you'll find that it refers to someone who isn't good at saving their money or spending it wisely. These people are not "thrifty," but very much the opposite. If there's money in their pocket, they'll spend it without a care in the world.
Imagine you have spent your entire life working hard to save and earn your money. Nevertheless, you are now too old and infirm to care for yourself and you need to move into a long-term care facility to benefit from round-the-clock medical care. Unfortunately, if you have considerable assets at your disposal, you will need to spend these assets on your long-term care costs, which could exhaust the legacy you hope to leave for your children. That is, as long as you still continue to own the assets in your name.
Many people enjoy setting up a charitable remainder trust because it will ultimately benefit the charity of their choice. However, the primary reason why most estate planners create a trust like this is for the tax benefits.
You marry them, you love them, they are the source of your inspiration and happiness, yet spouses can also be a serious threat to your children's inheritance. Whether it's your husband or wife, or your child's husband or wife, this person could, in certain contexts, have the legal right to take some of the inheritance you want your child to have. This is why you need to prepare your estate plan in a way that protects your children's inheritance.
Do you have a considerable amount of money saved up as an inheritance for your family members? If you become incapacitated or require long-term care in a nursing home, you run the risk of spending all of your financial legacy on medical bills before you can qualify for Medicare benefits. Fortunately, you might be able to protect yourself from this kind of a situation with a strategically-planned trust.
Many people underestimate the true value of their estate. When they learn that the estate tax threshold in 2018 stands at $11.8 million per estate, they may believe that they stand no chance of owing estate taxes at the end of their lifetime.
If you are considering setting up a trust for your grandchild, you have likely considered several different options. You naturally want a solution that is financially efficient for you and still helps your grandchild to benefit financially.
When a person executes a will as the sole indication of their last wishes, their entire estate will go through the probate process at the end of their life. As many people know, there are certain disadvantages associated with the process of probating a will. It can take a lot of time and is also costly.