Transfer Wealth through Trusts

Sunday, October 4th, 2009

Transferring wealth to the next generation is a very noble goal.  However, you may be hesitant to transfer wealth through a trust because you think that it may be expensive.  But if you think about it thoroughly, you will realize that simply handing it over to your children or grandchildren have a lot of risks, especially if the beneficiaries are still minors. 

Let’s face it - kids may sometimes be impulsive and easily influenced.  So how do you give inheritance to someone who’s not mature enough to handle their own money?  One way is through trusts.  You will have full control because you’ll be the one to establish its terms and conditions.  For example, you can make it restrictive and give the money to the beneficiary only when the right time or reasons come.

Of course you need to do a cost-benefit analysis for this purpose.  It doesn’t make sense for you to create a trust if you intend to fund it with only $500.  It’s not to say that $500 is not a lot of money, but just don’t make the mistake of spending three times as much in setting up a trust if you will only put $500 in it.  It’s best to consult an attorney regarding this concern if you want a sound advice.

Tags: advice, attorney, beneficiary, children, control, grandchildren, inheritance, kids, trust, trusts, wealth
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You Need a Basic Will

Thursday, June 18th, 2009

It’s a pretty good advice to say that “if you are not doing anything to care for your legal affairs, then you should write a will.”  It’s a known fact that if you don’t create a will before you pass away, the state law will determine who will get your property.  Also, a judge may be the one to decide who will take care of your children.  It’s scary to think that their choice may not be whom you will choose.

You might think that it’s a daunting task to write such an important document.  However, you can confidently purchase software or use a self-help book to create a legal binding will that will:

• -Name a guardian to take care of your children (minors)
• -Name someone to manage the property that you will leave to your children
• -Leave your property to organizations or people you choose
• -Name your executor, or the person authorized to carry out the terms of your will

The safest way for you to make a will is to consult an attorney experienced in helping people create it.  The rule of thumb is that if you’re below 50 years old and don’t expect to pass on valuable assets subject to estate tax, then you can probably have a basic will.  However as you acquire more property in your old age, you’ll most likely engage in a more sophisticated planning.                                                                                                                                               

Tags: advice, attorney, basic will, estate tax, executor, property, state law, valuable assets, will
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