Es­tate Plan­ning … are you ready? - Liv­ing Trusts

Bayview Post - - Ask The Expert -

Dean Con­stand - Char­tered Pro­fes­sional Ac­coun­tant CPA, CGA, LPA Do you want to give some of your es­tate away to­day dur­ing your life­time by way of a liv­ing trust while you still have le­gal con­trol of those as­sets? Here are some ad­van­tages of a liv­ing trust: • Pro­vid­ing For Ben­e­fi­cia­ries Who Can’t Man­age As­sets On Their Own – With a liv­ing trust, you can pro­vide for de­pen­dants with spe­cial needs, for ben­e­fi­cia­ries of a com­pli­cated es­tate who don’t have the ex­per­tise to man­age it, for man­age­ment of a mi­nor’s in­her­i­tance to be re­ceived in a lump sum when he or she reaches 18 (by spac­ing the in­her­i­tance out) • Pro­vid­ing For Your­self And Your Spouse If Too Old Or Sick – You can pro­vide for your­self, or you and your spouse, dur­ing your life­time with a liv­ing trust called an Al­ter-Ego Trust, or Joint Spousal Trust, re­spec­tively, al­low­ing le­gal con­trol of those as­sets in the trust to rest with a trustee, who man­ages the prop­erty in ad­vance of your or your spouse’s death or dis­abil­ity, thus act­ing as a power of at­tor­ney – you must be 65 years of age to cre­ate or be the set­t­lor of an Al­ter-Ego or Joint Spousal Trust • Sec­ond Mar­riages – You can pro­vide for your spouse from a sub­se­quent mar­riage dur­ing his or her life­time with a liv­ing trust called a Spousal Trust, af­ter which the as­sets from the trust pass to the chil­dren of your first mar­riage • Es­tate Freezes – If you own an in­vest­ment (other than your home) or a busi­ness that has grown in value over the years and will con­tinue to grow, you can pass the fu­ture growth to the hands of your With over 30 years of ac­count­ing ex­pe­ri­ence, Dean Con­stand CPA, CGA, LPA is ded­i­cated to small busi­ness needs and tax plan­ning. Dean of­fers a client-cen­tered fo­cus that achieves cost-ef­fec­tive re­sults. Dean is a Li­censed Pub­lic Ac­coun­tant pro­vid­ing both au­dited and unau­dited fi­nan­cial state­ments. Other ar­eas of ex­per­tise in­clude cor­po­rate and per­sonal in­come taxes and es­tate plan­ning. ben­e­fi­cia­ries now, and still main­tain con­trol, by way of a liv­ing trust that owns a cor­po­ra­tion, which al­lows you to es­tab­lish or “freeze” your taxes on that growth now, but pay those taxes later when you die, thus re­duc­ing a po­ten­tially higher tax bill if you waited to trans­fer your grow­ing as­sets when you died • As­sets held in a trust are pro­tected as they are owned by the trust and are not ac­ces­si­ble to cred­i­tors of an in­di­vid­ual • There are no pro­bate or es­tate ad­min­is­tra­tion fees on the as­sets held in a trust • The trust doc­u­ment re­mains con­fi­den­tial, whereas a will be­comes a pub­lic doc­u­ment if it is pro­bated, dis­clos­ing the value of the es­tate as well to the pub­lic

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