Estate Planning Isn’t Just for the Wealthy
|
|
Pour-over Will: This document simply says that any assets you own that are not titled in the name of your trust (perhaps your car, or your daily checking account) are moved into your trust at your death Irrevocable Life Insurance Trust: Unlike the Living Trust, this trust is used to hold title to your life insurance policies, allowing the proceeds to go to your beneficiaries, without becoming part of your taxable estate. Important: Have the trust purchase a new policy on your life, assuming you are still insurable. And remember there is a two-year contestability provision on that new policy. If you transfer an older policy, and die within two years, it could be brought back into your estate. Health Care Power of Attorney: Name someone you trust to make medical decisions when you are incapacitated. Living Will: The “pull the plug” document expresses your wishes about being kept alive in a vegetative state. There are other kinds of trusts that can be used to protect marital assets, and to distribute your wealth to future generations. But you need expert advice to work through this process. More : thestreet.com |