Often, as people grow older and pursue opportunities and interests, they move from one state to another. Of course, any time you move states, you suddenly must contend with a whole host of issues you might not expect — different taxation and different laws that govern everything from DUI penalties to building codes. But, does moving states affect your estate planning if you created a trust in one state and relocate to another?
Estate planning is a complicated endeavor, with many nuanced financial products available to meet a variety of needs in the marketplace.Trusts are some of the most interesting and complex tools available for estate planning, each with their own function and special rules, allowing them to use the law to your advantage when created properly and used wisely. While many estate plans focus on protecting assets from the probate process after a person passes away, an asset protection trust has a slightly different function.
As the new administration continues its tour of shaking up every corner of the country's establishments, the estate planning industry has been holding its breath, waiting to see what new laws may be passed soon that could have huge impacts on estate plans throughout the country. Many estate planners are concerned, and rightly so, that the administration's desire to repeal the estate tax may render years of hard work useless overnight. While it is certainly true that a drastic change in the law could have large effects on the industry, this is no reason to put off important estate planning completely.
Most of us have driven down the freeway and seen the billboards displaying one lottery jackpot or another, momentarily getting lost in the thought of what we would do with a sudden windfall. The reality of winning the lottery, however, is not as simple as it might seem. Those who do beat the odds must contend with complex taxation issues that most of us will never brush up against, while others prefer to take a number of extra steps to ensure they are able to maintain as much privacy as possible about their winnings.
Providing for the ones you love is an important privilege for those who have the means to do so, but this is often more complicated than just writing a check and being done with it. If you have a loved one who depends on government assistance to afford living with a disability, then you might inadvertently disqualify that person from the crucial government assistance by carelessly leaving them too much money at one time. Fortunately, there are options. By employing a special needs trust, you can provide for the one you love without disqualifying them from government assistance.
When crafting an estate plan that takes into account grandchildren, there is some extra care that must be taken to ensure that your loved ones are cared for without creating extra difficulty for them in the long run. Because grandchildren are often minors, and may still be minors when they become receiving beneficiaries of your estate, some extra steps must be taken to make sure that your wishes are fulfilled without incurring extra fines or violating laws governing ownership by minors.
For many who are venturing into the complex but worthwhile field of employing trusts in their estate plan, life insurance is an asset that presents some unique challenges. Without taking proper precautions, a life insurance policy can present just as many problems as intends to solve for the survivors of a policy holder.
Many people use various kinds of trusts to preserve their assets and ensure that their intentions are stated and followed regarding their estates. There are different concerns involving trusts — how to establish and use them, the pros and cons of each type — but it can be unclear how trusts are terminated.
Trusts come in many shapes and sizes, each with their own specific purposes, advantages and restrictions. The crux of making the most of any form of trust is understanding exactly what you need, and how each form of trust may be able to most help you achieve your goals. One form of trust with a very specific purpose is a special needs trust.
Creating a trust can take many forms, but in order for it to be honored by a court or government agency, it must be formed validly. California offers its residents several options for creating trusts that may be honored, depending on the nature of the trust being created and its intended use.