Safeguarding Digital Assets in Estate Planning

April 12, 2023

The highly secure nature of crypto assets results largely from the lack of personally identifiable information associated with crypto accounts. Unfortunately, this makes identifying crypto assets impossible for heirs or executors, who must be made aware of their existence or provided with the information needed to access these new assets. Safeguarding digital assets in estate planning is critical.

The only way to access crypto accounts after the original owner’s death, as reported in the recent article “Today’s Business: Cryptocurrency and estate planning” from CT Insider, is to have the password, or “private key.” Without the private key, there is no access, and the cryptocurrency is worthless. At the same time, safeguarding passwords, especially the “seed” phrases, is critical.

The key to the cryptocurrency should be more than just known to the owner. The owner must never be the only person who knows where the passwords are printed, stored on a secreted scrap of paper, on a deliberately hard-to-find thumb drive, or encrypted on a laptop with only the owner’s knowledge of how to access the information.

At the same time, this information must be kept secure to protect it from theft. How can you accomplish both?

One of the straightforward ways to store passwords and seed phrases is to write them down on a piece of paper and keep the paper in a secure location, such as a safe or safe deposit box. However, the safe deposit box may not be accessible in the event of the owner’s death.

Some people use password managers, a software tool for password storage. The information is encrypted, and a single master password is all your executor needs to gain access to secret seed phrases, passwords and other stored information. However, storing the master password in a secure location becomes challenging, as information cannot be retrieved if lost.

You should also never store seed phrases or passwords with the cryptocurrency wallet address, which makes crypto assets extremely vulnerable to theft.

This information needs to be stored in a way that is secure from physical and digital threats. Consider giving your executor, a trusted friend, or relative directions on retrieving this stored information.

Another option is to provide your executor or trusted person with the passwords and seed phrases, as long as they can be trusted to safeguard the information and are not likely to share it accidentally.

Passwords and seed phrases should be regularly updated and occasionally changed to ensure that digital assets remain secure. If you’ve shared the information, share the updates as well.

A side note on digital assets: the IRS now treats cryptocurrency as personal property, not currency. The property transaction rules applying to virtual currency are generally the same as they apply to traditional types of property transfers. There may be tax consequences if there is a capital gain or loss.

Properly safeguarding seed phrases and other passwords for your digital assets is critical in estate planning. Include digital assets in your estate plan just as a traditional asset. If you are interested in reading additional posts regarding digital assets, please visit our previous posts.

Reference: CT Insider (March 18, 2023) “Today’s Business: Cryptocurrency and estate planning”

TODs can Derail an Estate Plan if not Coordinated

April 11, 2023

Transfer on-Death (TOD) and Payable-on-Death (POD) designations on financial accounts appear to be a simple way to avoid probate. However, TODs can still derail an estate plan if not coordinated with the overall plan, says a recent article from mondaq, “Transfer-on-Death Designations: A Word of Warning.”

Using a TOD or POD benefits the beneficiary and the account administrator, since both avoid unnecessary delays and court oversight of probate. In addition, designating a beneficiary on a TOD/POD account is usually fairly straightforward. Many financial institutions ask account owners to name a beneficiary whenever a new account is opened. However, the potential for undoing an estate plan can happen in several ways.

TOD/POD designations remove assets from the probate estate. If family members or trusts are included in an estate plan, but the TOD/POD designations direct most of the decedent’s assets to beneficiaries, the provisions of the estate plan may not be implemented. However, when thoughtfully prepared in tandem with the rest of the estate plan with an estate planning attorney, TOD/POD can be used effectively.

TOD/POD designations impact tax planning. For example, when an estate plan includes sophisticated tax planning, such as credit shelter trusts, marital trusts, or generation-skipping transfer (GST) trusts, a TOD/POD designation could prevent the implementation of these strategies.

If an estate plan provides for the creation of a GST trust, but the decedent’s financial account has a TOD/POD naming individuals, the assets will not pass to the intended trust under the terms of the estate plan. In addition to contradicting the estate plan, such a mistake can lead to unused tax exemptions.

TOD/POD designations can create liquidity problems in an estate. For example, suppose all or substantially all of an individual’s financial accounts pass by TOD/POD, leaving only illiquid assets, such as real estate or closely held business interests in the estate. In that case, the estate may not have enough cash to pay estate expenses or federal or estate taxes. If this occurs, the executor may need to recover necessary funds from the beneficiaries of TOD/POD accounts.

TOD/POD designations can undermine changes made to an estate plan. During the course of life, people’s circumstances and relationships change. It is easy to forget to update TOD/POD designations, especially if one’s estate planning attorney is not informed of assets being titled this way. An inadvertent omission increases the risk that a person’s wishes will not be fulfilled upon death.

Whenever considering putting a TOD/POD on a financial account, you must consider the impact doing so will have on your overall estate plan. Therefore, be sure the TOD is coordinated with your estate plan so you do not derail all the excellent planning that has been done to achieve your wishes. If you would like to learn more about TODs or PODS and how the interact with your planning, please visit our previous posts.

Reference: mondaq (March 15, 2023) “Transfer-on-Death Designations: A Word of Warning”

Protecting Inheritances in a Blended Family

April 10, 2023

Blended families have estate planning challenges differing from traditional families, explains a recent article from The Record Courier, “Estate Planning for Blended Families.” A blended family is one where one or both partners have children from a prior marriage. The details vary, but the concern is the same: the possibility for the children to be disinherited if after one spouse dies, the surviving spouse reduces or eliminates any provisions made for the deceased spouse’s children. Protecting inheritances in a blended family becomes a major priority.

A well-drafted estate plan, created by an experienced estate planning attorney, can address this issue to ensure that the deceased spouse’s children are protected and provided for after the death of their parent.

When creating the estate plan, consider what would happen if the surviving spouse remarried. This frames the drafting process in an optimal way for the children. Provisions should be made to protect them and a number of strategies may be used.

A simple last will and testament or even a revocable trust with no provisions typically won’t be enough to address the complex needs of a blended family. When the first spouse dies, the surviving spouse remains free to change the terms of their will, which could place the children of the deceased spouse at a disadvantage.

Designating an independent fiduciary can help ensure that the children of the deceased spouse have sufficient assets. The independent fiduciary can protect the children’s interests with no risk of self-dealing. An oversight by an independent fiduciary also minimizes the chances of conflict between children and stepparents.

A properly designed estate plan protects the children of both parents, regardless of which spouse dies first. One commonly-used strategy is to create a trust leaving the assets to the surviving spouse during the spouse’s lifetime but then passes the remaining assets to the children of the deceased spouse.

Another option is to divide the estate upon the death of the first spouse, with half the estate protected for the children of the deceased spouse. The surviving spouse has access to those assets for certain needs. However, limitations may be put into place. This is applicable if the two partners bring assets of equal size to the marriage.

In some cases, the strategy to ensure that children receive the assets intended for them upon their parent’s death is to leave them to the children outside of the trust, passing them directly by naming the children as designated beneficiaries on select accounts and/or life insurance policies.

If the children are minors, creating a separate trust may be an optimal means of protecting inheritances in a blended family.

A premarital or post-nuptial agreement is also used to clarify the rights and responsibilities of each spouse during the marriage and can also be used to specify the children’s living situation and expenses and require assets to be used to maintain their standard of living.

With mindful and comprehensive estate planning, couples can leave a financial legacy for all of their children, while still providing for surviving spouses. If you would like to learn more about blended families, please visit our previous posts.

Reference: The Record Courier (March 12, 2023) “Estate Planning for Blended Families”

Asset Protection Trusts can address Long Term Care

April 5, 2023

Asset protection trusts can address long term care costs. As the number of people aged 65 plus continues to increase, more seniors realize they must address the cost of long-term health care, which can quickly devour assets intended for retirement or inheritances. Those who can prepare in advance do well to consider asset protection trusts, says the article “Asset protection is major concern of aging population” from The News Enterprise.

Asset protection trusts are irrevocable trusts in which another person manages the trust property and the person who created the trust—the grantor—is not entitled to the principal within the trust. There are several different types of irrevocable trusts used to protect assets. Still, one of the more frequently used irrevocable trusts for the purpose of protecting the grantor’s assets is the Intentionally Defective Grantor Trust, called IDGT for short.

As a side note, Revocable Living Trusts are completely different from Irrevocable Trusts and do not provide asset protection to grantors. Grantors placing their property into Revocable Living Trusts maintain the full right to control the property and use it for their own benefit, meaning any assets in the trust are not protected during the grantor’s lifetime.

IDGTs are irrevocable, and grantors have no right to principal and may not serve as a trustee, further limiting the grantors’ access to the property in the trust. Grantors may, however, receive any income from trust-owned property, such as rental properties or investment accounts.

During the grantor’s lifetime, any trust income is taxed at the grantor’s tax bracket rather than at the much higher trust tax bracket. Upon the grantor’s death, beneficiaries receive appreciated property at a stepped-up tax basis, avoiding a hefty capital gains tax.

While the term “irrevocable” makes some people nervous, most IDGTs have built-in flexibility and protections for grantors. One provision commonly included is a Testamentary Power of Appointment, which allows the grantor to change beneficiary designations.

IDGTs also include clauses providing for the grantors’ exclusive right to reside in the primary residence. However, if the grantor needs to change residences, the trustee may buy and sell property within the trust as needed.

IDGTs provide for two different types of beneficiaries: lifetime and after-death beneficiaries. Lifetime beneficiaries are those who will receive shares of the total estate upon the death of the grantor. Lifetime beneficiary provisions are important because they allow the grantor to make gifts from the trust principal. Hence, there is always at least one person who can receive the trust principal if need be.

Asset protection trusts are complicated and require the help of an experienced estate planning attorney. However, when used properly, asset protection trusts can address unanticipated creditors, long-term care costs and even unintended tax liabilities. If you would like to learn more about asset protection, please visit our previous posts.

Reference: The News Enterprise (March 4, 2023) “Asset protection is major concern of aging population”

Photo by Karolina Grabowska

Qualified Disability Trust can reduce Tax Burden

April 4, 2023

A qualified disability trust can help reduce the tax burden associated with special needs trusts. A qualified disability trust, or QDisT, qualifies for tax exemptions and applies to most trusts created for an individual with special needs. In most cases, explains a recent article from Investopedia, “Qualified Disability Trust: Meaning and Tax Requirements,” the person receiving income from the trust must pay income tax. However, in 2003, the IRS added a section allowing some disability trusts to reduce this tax liability. This is another example of why reviewing estate plans every few years is important.

Trusts need to meet several requirements to be considered qualified disability trusts for tax purposes. However, if a special needs trust meets these criteria, it could save a lot in taxes.

Most special needs trusts already meet the requirement to be treated as qualified disability trusts and can be reported as such at tax time. For 2022 tax year, the tax exemption for a QDisT is $4,400. For tax year 2023, the amount will increase to $4,700. Income from a QDisT is reported on IRS Form 1041, using an EIN, while distributions to the beneficiary will be taxed on their own 1040 form.

The best way to fully understand a QDisT is through an example. Let’s say a child is diagnosed with a disability, and their grandparents contribute $500,000 to an irrevocable special needs trust the child’s parents have established for the child’s benefit. The trust generates $25,000 in annual income, and $10,000 is used annually for expenses from the child’s care and other needs.

Who pays the income tax bill on the trust’s gains? There are a few options.

The parents could include income from the trust as part of their taxes. This would be “on top” of their earned income, so they will pay their marginal tax on the $25,000 generated from the trust—paying $8,000 or more.

Alternatively, trust income spent for the child’s benefit can be taxed to the child—$10,000, as listed above. This would leave $15,000. However, this must be taxed to the trust. Trust income tax brackets are high and increase steeply. Paying this way could lead to higher taxes than if the parents paid the tax.

The QDisT was designed to alleviate this problem. QDisTs are entitled to the same exemption allowed to all individual taxpayers when filing a tax return. In 2012, for instance, the personal tax exemption was $3,800, so the first $3,800 of income from QDisTs wasn’t taxed.

The deduction for personal exemptions is suspended for tax years 2018 to 2025 by the Tax Cuts and Jobs Act, except the same law said that in any year there isn’t a personal exemption, the exemption will be allowed for a QDisT.

For tax year 2022, $4,400 is the indexed tax exemption amount for these trusts, including most special needs trusts. For tax year 2023, the amount will increase to $4,700.

To be reported as a qualified disability trust, specific requirements must be met:

The trust must be irrevocable.
The trust must be established for the sole benefit of the disabled beneficiary.
The disabled beneficiary must be under age 65 when the trust is established.
The beneficiary must have a disability included in the definition of disabled under the Social Security Act.
The trust must be a third-party trust, meaning all funding must come from someone other than the disabled beneficiary.

An experienced estate planning attorney can help set up a qualified disability trust that can help reduce the tax burden and allow you to enjoy the benefits the statute grants. If you would like to learn more about special needs planning, please visit our previous posts.

Reference: Investopedia (March 4, 2023) “Qualified Disability Trust: Meaning and Tax Requirements”

New changes to 529 Plans provide more Options

April 3, 2023

There are new changes to 529 plans that will provide more options to families. Forbes’ recent article titled “529 Plans Just Became More Flexible: Here’s Everything You Need To Know” explains that the Secure Act 2.0 changed 529 savings plans, which will make the funds easier to use when college expenses aren’t as high as planned. In addition, the law allows families to roll over up to $35,000 from a 529 plan to an IRA. However, the changes do not become permanent until 2024.

After 15 years in the plan, unused funds up to $35,000 can be rolled into a Roth IRA to save for retirement, subject to the annual IRA contribution limit. There’s also no penalty for using this money for IRA contributions instead of college expenses. Previously, a 10% penalty would have applied to the growth if funds were withdrawn for non-qualifying expenses.

There’s a 15-year waiting period, which might affect the benefit many people can get from this change. Therefore, you cannot open a 529 plan now, fund it and start moving money immediately. You have to wait at least 15 years.

The money transferred to an IRA goes to the account’s beneficiary or the student, not the account owner.

529 plan rules are created on the state level for each plan. Therefore, while federal law now allows529 plans to roll over to IRAs, your state may not conform to these rules. Currently, the 529 to IRA rollover is considered a “rollover” for tax purposes, and most states consider outbound rollovers taxable events. Therefore, states will need to update their state tax laws to conform with this new federal rule. Check your state’s law as well before you proceed with a rollover.

If you use up all the money for college, that’s super. However, if you don’t, you can transfer some money to your beneficiary’s IRA based on annual limits, until you reach the $35,000 cap. These new changes to 529 plans provide more options for families worried about saving too much money and like the idea of funneling that cash into their child’s retirement accounts instead. If you would like to learn more about college savings plans, please visit our previous posts.

Reference: Forbes (Feb. 20, 2023) “529 Plans Just Became More Flexible: Here’s Everything You Need To Know”

Take Care when using a Self-Directed IRA

March 29, 2023

For some people, a self-directed IRA could be a great vehicle in which to invest tax-advantaged retirement funds in real property. However, there are rules governing everything from property ownership and usage to how you cover expenses and take profits. If they aren’t followed, you can easily run afoul of the IRS. Take care when using a self-directed IRA.

Forbes’ recent article entitled “How To Use A Self-Directed IRA For Real Estate Investing” explains that a real estate IRA is just another name for a self-directed IRA that’s designed to hold investment property. You can own a wide range of property types in a real estate IRA. This includes land, single and multi-family homes, international property, boat docks, commercial properties and more. Because this is a type of self-directed IRA, the custodian—the company safeguarding your account and enforcing IRS regulations—allows you to hold alternative asset classes, like real estate.

First, find a custodian that allows or even specializes in real estate IRAs. Next, you need to fund your account—typically with a rollover from an existing IRA. With your cash in place, you can buy real estate and have it titled in the name of your IRA. You can finance real estate in your IRA with an investment property-specific mortgage. You can then pay the mortgage using additional cash from your self-directed IRA. When you sell a property held in a real estate IRA, the funds stay in the account. Depending on the type of IRA you’ve selected, those funds grow tax-deferred (traditional IRA) or tax-free (Roth IRA).

A real estate IRA allows you to diversify away from stocks and bonds. However, there are many rules governing this specialized type of account. Let’s look at some of the key rules you must know:

Property Title. Real estate that is held in a self-directed IRA is owned by the account, rather than by you personally. Therefore, the title documents that confirm ownership of the property are in the name of your IRA, rather than in your name.

Expenses and Income. All expenses and income flow into and out of your real estate IRA. All property taxes, utility bills and other expenses are paid by your account. All rental income or other income is paid back into your account.

Limitations on Use. Real estate held in a self-directed IRA can only be an investment property. You and any member of your family—plus any of your beneficiaries or fiduciaries—are referred to as disqualified persons. Since the purpose of an IRA is retirement investing, these disqualified persons can’t make use of the real estate assets.

No DIY. If you need to fix up or repair property held in a real estate IRA, the account must pay for the work. It can’t be performed by a disqualified person (you).

Prior Property Ownership. You can’t sell, lease, or exchange property you already own to your real estate IRA. That’s called “self-dealing,” which the IRS strictly prohibits.

Watch Out for the UBIT. If you take out a loan that’s secured by the property itself (a non-recourse loan), you will be required to pay unrelated business income tax (UBIT) on any profits related to the financed portion. However, you can use depreciation and operating costs to reduce your tax bill, which can allow you to reduce your UBIT or eliminate it altogether.

A self-directed IRA can be a wonderful tool to utilize retirement funds for real estate, but take care when using it. If you would like to learn more about retirement accounts and estate planning, please visit our previous posts.

Reference: Forbes (Feb. 13, 2023) “How To Use A Self-Directed IRA For Real Estate Investing”

There are Burial Benefits Available to Veterans

March 28, 2023

There are burial benefits available to veterans through the VA. Only about one in five veterans who died last year were buried free of charge in department or state-run veteran cemeteries. Less than half of individuals eligible for some type of burial or gravesite financial assistance took advantage of the benefit, says Military Times’ recent article entitled, “VA officials work to raise awareness of cemetery, burial services.”

“I want even more veterans and family members to know about and take advantage of the final benefits a veteran earns for their service,” said Matthew Quinn, undersecretary for memorial affairs at the National Cemetery Administration.

“They have the option to choose VA for their final wishes. And we will take care of them and their loved ones in a manner that mirrors their own dedicated service and devotion to our nation, in perpetuity.”

NCA officials are trying to emphasize VA burial services as the U.S. nears the 50th anniversary of the agency assuming control of national veterans cemeteries. There are now 155 such resting places managed by VA and another 121 funded by the department. However, the use of the burial benefits lags behind other well-known VA support services.

Quinn said several factors cause the low usage rate for burial services, including “family wishes” that multiple individuals be interred in the same plot. Only spouses and certain other dependents can be buried with a headstone alongside a veteran in a national cemetery.

However, other assistance — such as free headstones for veterans being interred at private cemeteries and free medallions for existing headstones to denote the deceased individual’s veteran status — are often overlooked because family members and funeral homes aren’t familiar with the benefits.

VA provided about 350,000 headstones for veterans’ graves last year, and another 12,000 medallions.

Quinn said while vets don’t have to use the services, those interested should consider applying before any of the services are needed to ensure they have the options ready.

“Applying for eligibility prior to the veteran’s death ensures that necessary service records are in order, so grieving family members do not have to search for military discharge papers while they are already under great stress,” he said. There are burial benefits available to veterans and your estate planning attorney can help you get the most out of these benefits as a part of your overall planning. If you would like to learn more about burial and funeral planning, please visit our previous posts.

Reference: Military Times (Jan. 24, 2023) “VA officials work to raise awareness of cemetery, burial services”

Planning to Protect your Pet after Death

March 27, 2023

Pet trusts and other options are now available to owners to provide for their animals when they can’t—and they’re not just for wealthy people. Planning to protect your pet after your incapacity or death is detailed in a recent article, “6 estate planning tips for pet owners” from Puget Sound Business Journal.

First, address your desired level of care and the annual cost of your pet. Depending on the type of pet, breed, health and diet, costs can vary dramatically. If you have multiple pets, consider which one is most likely to outlive you. What do you spend on food, pet insurance, vet care, medications and supplements? Will your pet require additional care as they age?

Create a list of your preferred veterinarians, groomers, daycare, pet walkers, food, sleeping preferences, treats, toys and any particular information you’d want someone to know if you are unable to tell them.

Name an appropriate trustee and caretaker and be sure they are willing to serve in these roles. Pets are considered property and legally may not own property of their own. If you leave an inheritance to them or name them as beneficiaries, state laws will determine who owns the assets. It won’t be the pet.

To ensure your pet is cared for, people typically designate a caregiver and a trustee. The trustee oversees the finances and is charged with ensuring that funds are used to care for the pet. The caretaker is similar to a custodial parent, and your pet will ideally live with them. Compensation for these roles is common, so factor this into your cost analysis.

Next, put it in writing. If you know your caregiver well and trust they will follow your wishes, you may put your request in your will. Your will disposes of all your property, including your pets, and leaves them to a beneficiary, who is your caretaker. It is important to understand that there is no guarantee or legal enforcement if you go this route. Informal agreements for pet care aren’t much better. If you give your pet to someone when you pass away, they can leave it at a shelter or give it to someone else.

Have your estate planning attorney create a pet trust. This is increasingly common, and not just for eccentric billionaires. Pet trusts were approved in 2000 under Section 408 of the Uniform Trust Code. The trust is a legal entity to plan for the care of your pet.

Make sure that your documents are reviewed every few years to be sure they reflect your wishes. This is especially true if you relocate or if caregivers pass away.

Fund your pet trust. This is the process of transferring assets into the trust, so the trustee can distribute them to the caregiver. Once the trust is created, it should be funded, even if you don’t expect to die tomorrow. Your estate planning attorney can discuss ways of funding the trust upon your death if you wish.

Provide directions for any remaining funds after your pet dies. If your beloved Woof passes shortly after you, what would you want to happen to the remaining funds? Beneficiaries could be an individual, a group, or an organization. It’s generally not recommended to leave the remaining funds to the caregiver or trustee—you don’t want to give them a reason to artificially shorten the pet’s life or provide bad care.

Estate planning for pets can easily be overlooked. However, if you are a pet parent, you’ll feel better knowing you’ve done the planning to protect your pet after your death, so they’ll enjoy a long and happy life, even in your absence. If you would like to learn more about pet protection, please visit our previous posts.

Reference: Puget Sound Business Journal (March 2, 2023) “6 estate planning tips for pet owners”

Trust can be Designed to be Millennial Friendly

March 22, 2023

If your named beneficiaries are Millennials—born between 1981-1996—you may want to consider three essential points about your trusts, as explained in the recent article “Trusts For Your Millennial Beneficiaries” from The Street. They’re different from their parents and grandparents, and disregarding these differences is a missed opportunity. Your trust can be designed to be Millennial friendly.

This generation’s distinguishing characteristics and traits include:

Valuing relations with superiors with a passion for learning and growth.
Desire to live a life with meaning and make a positive impact on the world and causes.
Creative and free thinking, looking for outside-the-box solutions and opportunities.

If your estate plan benefits Gen Y, some trust features recommended for Millennials may not be optimal for them. They’re different than their older Millennial counterparts.

Have your beneficiary serve as a co-trustee of their trust alongside an experienced advisor. Millennials appreciate the opportunity to ask for advice from a trusted advisor, secure positive reinforcement and get constructive feedback. Many heirs set to come into money are likely to work with an advisor once they inherit. For them, a co-trustee arrangement could be perfect. Consider naming a family member or friend with a background in finance as their co-trustee or naming a corporate trustee.

Consider giving your beneficiary a limited testamentary power of appointment to support their favorite charity. Millennials want to make a positive impact on the world, and there’s a trust feature you can build into a trust to support this goal: a limited testamentary power of appointment. In broad strokes, this gives the trust beneficiary the power to redirect where assets go upon their death. If the scope of power permits, they could redirect assets to charitable organizations of their choice.

Most people design trusts to last for the beneficiary’s lifetime and then structure the trust so assets remaining at their death will pass in trust to their children in equal shares. Trusts can also be created to change the distribution percentages between recipients. For instance, instead of a 50-50 split, the trust can redirect shares of 70-30 to better accomplish their personal objectives. You can also provide for new beneficiaries, like charities, if they weren’t part of the original trust.

Powers of appointment can be complicated and making them overly broad can have serious and adverse tax consequences. Therefore, speak with your estate planning attorney to make sure the scope of power is clear and properly designed.

Broadly define the standards for which distributions can be made to your beneficiary. Millennials think differently, so the commonly used trust distribution standards of health, education, maintenance and support (“HEMS”) may stop them from being able to tap into trust funds for philanthropic or entrepreneurial efforts. The HEMS standard only allows for distributions generally for purposes to align with the beneficiary’s current standard of living. If you want beneficiaries to be able to do more, they need to be given the ability to do so.

Another way to accomplish this is to allow a disinterested trustee (someone who is not a beneficiary) an expansive distribution authority. Having the ability to make a distribution of trust funds to your beneficiary for any purpose can be a little unsettling. However, naming a disinterested trustee you trust will ensure that funds are distributed responsibly.

Leaving assets in trust for beneficiaries can be part of an effective estate plan supporting planning goals and your loved one’s future. However, if the trust’s structure doesn’t meet their unique needs and talents, then their potential may be dimmed. Talk with your estate planning attorney about how a trust can designed to be Millennial friendly. If you would like to learn more about trusts and wills for younger adults, please visit our previous posts.

Reference: The Street (Feb. 24, 2023) “Trusts For Your Millennial Beneficiaries”

Photo by Tima Miroshnichenko

Blog Articles

Safeguarding Digital Assets in Estate Planning

TODs can Derail an Estate Plan if not Coordinated

Protecting Inheritances in a Blended Family

Asset Protection Trusts can address Long Term Care

Qualified Disability Trust can reduce Tax Burden

New changes to 529 Plans provide more Options

Take Care when using a Self-Directed IRA

There are Burial Benefits Available to Veterans

Planning to Protect your Pet after Death

Trust can be Designed to be Millennial Friendly

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