Wills

The will is the most basic document providing for the orderly passage of property upon death. A will is an appropriate tool for any size estate. It allows the client to designate beneficiaries, provide for care and guardianship of minor children and can eliminate some probate costs. Without a valid will, the estate passes according to the dictates of state law and may not meet the desires of the deceased.

Trusts

Trusts are used in tax planning for larger estates, and can provide for long term care and maintenance of minor children or incapacitated adults. Trusts may be used for those individuals who value the privacy of their personal financial affairs, and to avoid the probate process.

Revocable Living Trusts are lengthy documents. What is important to remember about them is that they delay the onset of federal estate taxes, and reduce those taxes on a great portion of the wealth. This preserves a greater amount to pass on to a surviving spouse or children.

Charitable Remainder Trusts can be used as a substitute for, or a supplement to a retirement plan. In the simplest case a client transfers highly appreciated property to a charitable remainder trust, reserving substantial payments for life and the life of a spouse. Upon the death of the last survivor the balance becomes the property of the charity. This arrangement can be attractive for 3 reasons:

• The gain on the appreciated property is not taxed,
• The value of the charitable remainder will generate some income tax savings, and
• The donor's interest in the trust is not subject to the tax on excess distributions.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

Copyright ©2002 by Bernard J. Simbole, Esq. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.