Do I need a trust? Even if one’s financial life is fairly uncomplicated, whether you are 28 or 88 years old, everyone should have an estate plan for their stuff. But do you need a trust? Paul Fain, certified financial planner at Asset Planning Corporation, answers some questions about estate planning.
WHAT IS IN OUR ESTATE?
- Home and person property
- Bank accounts
- Retirement accounts
- Life insurance
WHEN WE DIE, WHAT DETERMINES WHO GETS WHAT?
- Last will and testament
SO HOW DO YOU KNOW WHEN YOU NEED A TRUST?
- Living Trust or Testamentary Trust
- Management: Living and Death – assists with management of financial and business affairs
- Avoids Probate
- Generational Planning – especially helps transfer assets to minors and beneficiaries with special needs
DO YOU NEED AN ATTORNEY TO DRAFT A TRUST?
- Consulting a legal expert is always preferred
- Consider the cost of errors rather than just the cost of an attorney
- Review estate plan regularly
FAST MARKET FACT: Estate Taxes
- Federal: $11.4 million exemption
- State: no estate tax
- Baby Boomers – $30 trillion
QUESTION FOR OUR MONEYMAN?
Want to learn more about living trusts, testamentary trusts, or other areas of estate planning? Do you have other general questions about financial planning? Send them to our Knoxville financial planner Paul Fain or directly to Paul@assetplanningcorp.com!
Bonus! As a thank you to our readers, if you contact us before July 1, 2019 saying that you have seen this post, you will receive a free Asset Planning Corporation gift!