Charitable Remainder Trusts: Preserving Your Estate

Writen by Frank Amato

Most people would not dispute the value of financial and estate planning, but studies show that relatively few people actually adopt such a plan. Too bad, because in its present form financial and estate planning ensure that a person’s assets and property will be put to the greatest use during life, and to the beneficiary’s best use after death. Planning tools can be as simple as a will, or as complex as a trust. And many times, life insurance can play major role in a trust.

Although most people equate the need for an estate plan with the very rich, it doesn’t take much these days to exceed $600,000 in accumulated assets, the amount at which federal estate taxes kick in. An estate includes virtually anything of value:” real estate, stocks and bonds, savings, pensions, collectibles, jewelry and more. Proper estate and financial planning can help to lessen the eventual tax bite, which ranges as high as 55% of an estate, and preserve or even increase the value of an estate. Trusts can help accomplish those goals.

The definition of a trust is simple enough: an agreement in which a person, bank or trust company manages your assets for the benefit of your beneficiaries. Assets placed in a trust are no longer owned by the person who placed them there, but by the trust. Estate, gift and income taxes are naturally reduced on the individual’s shrunken estate.

The one notable exception is a revocable trust, one of the few that doesn’t offer estate tax advantages, but it does offer flexibility. As the name implies, the trust can be revoked or revised at any time. Assets in these trusts bypass the costly probate process, but are subject to full taxation since full ownership of the assets can be regained at any time.

An irrevocable trust doesn’t offer the same flexibility or control, but it does keep assets out of an estate until death — thus there’s less to levy taxes upon. Once an irrevocable trust is established, it can’t be changed without adverse estate tax implications.

Many planners will suggest that all or part of an irrevocable trust be funded with life insurance. Such an agreement can provide beneficiaries with the necessary liquidity to take care of estate taxes and administrative costs without having to sell off assets.

A Crummey Trust is one popular tool in this situation, allowing for the purchase of an insurance policy with gift-tax-free dollars.

Another type of irrevocable trust is the Charitable Remainder Trust, a vehicle in which assets, including life insurance, can be gifted to charity, allowing for tax deductions during the donor’s lifetime or upon dispersal of the estate.

A variety of other trusts can be used to pass assets to minors or dependents of any age, to spouses who are not U.S. citizens, and to ensure the orderly continuation of a business.

With the assistance of qualified financial advisors, a property structured trust can ensure that future plans can be carried out. Many times, life insurance makes those plans a financial reality.

Frank Amato is a Chartered Financial Consultant and the Managing Member of Arizona ESOP Group, LLC in Scottsdale, AZ. He is receptive to any comments and/or questions at (480)222-0199.

Visit message from Frank A. Amato at:
http://www.arizonaesopgroup.com/index.php?page=about

How to Close the Best Deal in Spokane Washinton

Writen by Groshan Fabiola

Spokane Washinton is a very good place for real estate investment! This region is the administrative center of the county with the same name and in recent years it has developed into a prosperous, lucrative region. Spokane is the commercial center of Washington and can offer many benefits to investors. This territory is rich in natural resources and it is considered to be the perfect place to start a business from scratch. Judging by the fact that branches like the mining industry, agriculture, horticulture have developed considerably lately, investors have a multitude of options in choosing a new direction for their business.

Furthermore, Spokane Washinton is a very good place for real estate investment, as the region is under continuous expansion and development. Despite the fact that in the past investors used to ignore this region, unaware of its true potential, today real estate investors are constantly battling for closing the best deal in Spokane. Whether you own a house or real estate in Spokane and you wish to sell it, or you want to expand your business in this area and therefore you are interested in buying, it is very important to be properly informed!

If you are the owner of a real estate in Spokane, why would you rush to accept the first offer you get? You should take your time and make a careful examination of the real estate market before closing the deal. On the other hand, if you are an investor in real estates and you are interesting in buying a house or a real estate in Spokane, how can you get the best out of your deal? Only solid investment strategies, latest information, good negotiation skills and perfect timing can place you one step ahead of competition in closing the best real estate deal. The trick in real estate investment is to come up with the best offer at the right time!

Let’s say that you want to expand your business and you are interested in buying a real estate in Spokane Washinton. What would you do? Closing the best deal is time consuming and it is very difficult to know exactly where, when and how much to invest! Is it? Not if you turn to the Internet for help. There are thousands of real estate investment web sites that offer business owners the opportunity to get the most out of their transactions. Good, reliable real estate web sites are powered by business professionals that offer subscribers tips, strategies, latest information, and prompt feedback. These web sites can save you a lot of time, money and effort by frequently providing with you a solid evaluation of the real estate market!

If you are a real estate investor and you are interested in closing the best deal in Spokane Washinton, but simply don’t have the time to perform an evaluation of the local real estate market, find a professional web site that can take care of business for you! Choose the real estate investment web site that suits you best and you won’t be disappointed!

So, if you want to find out more about spokane washington real estate, or if you need some giudance making a real estate investment we are recommending these links.

Retirement Planning for the Future

Writen by Frank Owen

Many people make the mistake that retirement is only something that older people need to worry about. Unfortunately, this way of thinking can longer be acceptable, because those in their 20’s and 30’s who do not plan for their future now will end up with very little come retirement age. If you engage in planning for retirement now, you’ll be able to rest assured that you can continue to live the lifestyle you’ve always dreamed about. Remember, it’s never too early to start planning for the future, and you want to make sure you have enough to support yourself by the time you can’t work anymore.

The first option when planning for your retirement is to open a Roth IRA. Your current employer may have this option available to you, and you might be able to open one for you and for your spouse. This type of IRA will grow for many years tax-free, and you don’t have to do anything to it. Once you’ve reached age 59 and a half, you can withdraw whatever money has accumulated or leave it there to continue to develop until you really need it. Because you never have to touch the IRA, this type of investment is a great way to plan for the future.

Alternatively, if your company has any sort of retirement fund program you can choose to participate in, it would be wise to do so. Many employers match the money you contribute to your fund, so if your company offers a retirement program it would be a good idea to take advantage of it. These are just a couple of simple things you can do to plan for the future, and if you start while you’re young that gives you more than enough time to build up a tidy nest egg you can live off of when you can’t work anymore.

Estate Planning – Protecting Your Will’s Integrity

Writen by Ronald Hudkins

In the not overly distant past, the writings of the testator were the only evidence of his or her intentions and mental capacity. Undue influence was harder to defend against when the only evidence was the testator’s writings and the recollection of those around them. Imagine the scene, the packed court room (perhaps I have a flair for the dramatic), the testimony as to the deceased’s mental health and the influence exercised over them by their final caretakers and close family members made the testator’s mental health and the influence of others over them a matter of the testimony of the living and those often involved in contesting or defending the will.

But new options exist today that make it far easier for the testator to present evidence after they have passed away. The first question to be asked in a contest involving mental capacity is that of mental deficiency. Mental deficiency is demonstrated by the testator not being able to comprehend what he/she owns, to whom he/she is giving it, and how it will be transferred in addition to the overall impact such transference will have on their estate as a whole. Previously this could only be done in writing and it was often suspected that the attorney representing the deceased might have helped that writing have all the necessary components, rendering the doctrine more flexible and open to jury or judicial interpretation than a clear matter of fact.

However, today the process can include having the testator explain on video tape what the asset is, how it is to be transferred and to whom, and the overall implications of that transfer to the overall estate. It is easier to see the deceased, to see whether he or she seems to understand all the implications and to see whether or not he/she is the type of person who is weak willed enough to be susceptible to undue influence. In addition, protecting your client by having them explain it in their own handwriting and, on a couple of different occasions, on video tape alters the essential landscape of the court room proceedings by making the deceased a witness.

In addition, it is often useful to send a client to a psychiatrist to verify their mental health and acuity on an ongoing basis. This is evidence that those contesting the testamentary instrument will not easily be able to counter, because they will not have their own psychiatrist who has had access to the testator. This is another excellent card to have in your arsenal as an attorney in order to protect your client’s interests which again alters the landscape of the proceeding if the will is contested.

Questions as to whether a client is mentally capable of understanding his/her bequests, the implications of those bequests, and the relation of those bequests to the rest of his/her estate as well as questions regarding to what extent, if any, their own personality was waning and susceptible to undue influence can be answered in different way. The more the judge and jury are able to see the testator, how they behaved, and how lucid and in control of their faculties they appeared to be, the more the trial regarding wills shall depend on a more direct perception of the testator rather than one provided by second hand accounts. The wise estate planner will use video tape in conjunction with psychiatry and standardized psychiatric tests to show that the testator knew exactly what he/she was doing and will not be hamstrung, as in days past, by the perception of others.

About Ronald E. Hudkins; Ronald Hudkins is a retired U.S. Army Military Police member that was assigned as a staff researcher. He has coordinated with military and criminal investigators, set on court marshals and worked closely with the Staff Judge Advocate Generals Office (JAG). He has a keen sense of legal matters – their interpretation, initiatives and guidelines. For imperative financial planning needs he suggests his book “Asset Protection and Estate Planning for All Ages.” Additionally, he offers a Free Newsletter at his web site: http://www.AssetProtectNow.com

Protecting Your Child: Setting Up a Special Needs Trust

Writen by LJ Stewart

Parents of children with special needs, such as those with cerebral palsy should visit a lawyer and set up a Special Needs Trust. A special needs trust is set up allow use of property for the beneficiary without losing access to essential government services and benefits. As it stands now a person who is disabled cannot inherit more than $2,000- it will interrupt his or her government benefits. Especially important are long-term care and nursing home benefits under the Medicaid welfare program.

Government benefit programs are now recognizing that family contributions can only improve a disabled person’s life. As long as the family’s contributions are supplementary and do not duplicate government benefit programs, they are allowed. Some current government benefit programs do let the family to provide some supplementary income and resources to the person with a disability. However, government regulations are very strict, and they are carefully monitored for abuse.

Special Needs Trusts are frequently used as a way to receive an inheritance or personal injury settlement proceeds on behalf of a disabled person in order to allow the person to qualify for Medicaid benefits.

A special needs trust can be used to buy such things as:

• uninsured medical and dental expenses, eyeglasses
• Maintenance of vehicles
• Insurance (including payment of premiums)
• Transportation (including buying a vehicle )
• Athletic training, gym membership or competitions
• Personal care attendant or escort
• Rehabilitation
• Essential dietary needs
• Purchase materials for a hobby or recreation activity
• Purchase a computer or other electronic equipment
• Pay for trips or vacations,concerts,outings
• Buy things that add to quality to life: movies,video games, books, crafts , etc.

It is strongly advised if you are a parent of a special needs child that you speak with an attorney regarding the set up of a special needs trust.

Estate Planning and Your Pets

Writen by Thomas McNally

You have diligently outlined what should become of your children in the event of your death or disability. You’ve planned your estate, appointed guardians and possibly even shared your estate plan with family members and trusted caretakers. But doesn’t something feel as if it’s missing? Perhaps you need to plan provisions for what should become of your pets once you are no longer able to care for them.

Unfortunately, thousands of Americans overlook their pets when they plan their estates each year. When these people die, family members or friends might adopt their pets. But, many times, the pets are left to fend for themselves s. Your pet doesn’t have to be left behind. Include your pet in your estate plan to assure that your pet receives the kind of care you would give if you could.

Most states allow you to include provisions for how your pets will be taken care of in your estate plan. These provisions can include instructions, such as who will take care of your pets, and funds so that your pet’s caretaker can give your pet the proper treatment, nutrition, and recreation that you have provided during your life.

Either an appointed trustee or a guardian of your choice will control the funds allocated for your pet. If you name a guardian, make sure you have discussed his or her role in your pet’s life prior to signing the estate plan. Your guardian should have a safe, welcoming home for your pet. He or she should be free from allergies and should take an active role in the care of your pet. The funds you leave behind can be used to pay for things such as veterinarian bills, toys, and food for your pet. But, your guardian will need to give the pet loving care and attention that you have.

If you choose to leave your pet in the hands of an appointed trustee rather than a guardian, then you are electing to appoint an individual who will either adopt your pet(s) as his or her own, or your trustee will be charged with the task of finding a suitable home. Many times, animal shelters are the trustee. They work hard to find friendly homes for the animals so that the pets don’t end up on the streets.

Take a few moments to assign a guardian or trustee to care for your pet. It’s a simple task that will give you peace of mind that you’ve protected the companion with whom you’ve shared mutual love and affection.

Thomas McNally is the staff writer at the National Directory of Estate Planning, Probate & Elder Law Attorneys. McNally stresses the importance of finding a qualified estate planning attorney to ensure that your estate passes to whom you want, when you want, and is carried out in the manner you’ve chosen.

Three Advantages a Roth IRA May Offer Your Estate Plan

Writen by Cristina Callegari

Many may not consider the possibilities that a Roth IRA can offer an estate plan. But, there are three advantages that a Roth IRA can offer if your estate value is under the Applicable Exclusion Amount ($1.5 million in 2005, and $2 million in years 2006 & 2007) and if one of your planning goals is to leave as much money as possible to your heirs.

Defining The Roth IRA

Simply stated, the Roth IRA is an IRA that individuals make contributions to on an after tax basis (contributions to a traditional IRA may be made with pre-tax money). When qualified withdrawals are taken1, they are totally free from federal income tax (state income tax treatment may vary depending upon your state of residence).

Estate Planing Benefits of a Roth IRA

There are three.

1.) Passing income tax-free money to an heir. The estate planning benefits begin with the Roth IRA’s ability to pass money to a beneficiary income tax-free on qualified distributions at your death, provided the Roth IRA satisfies a five-year holding period.

2.) The Roth IRA avoids forced depletion at old age. Due to minimum distribution requirements (forced distributions at age 70

Private Trust Companies

Writen by Jon Dow

A Private Trust Company is, essentially, a company formed for the specific purpose of acting as trustee of a single trust, or a group of related trusts. It is not uncommon for settlors to wish to retain a degree of control over assets they settle into trust and this is sometimes achieved by reserving specific powers under the terms of the trust. Such a course has risks, however, and in some cases Courts have ruled that the trusts are a sham. This can have unwanted fiscal consequences and may expose the assets to claims by creditors. Another means of retaining influence might be to appoint members of the settlor’s family or his financial advisors as trustee. This is not always possible as the trust may be treated, in consequence, as tax resident where these persons live.

With a Private Trust Company, the settlor, members of his family or his advisors can be appointed to the Board of Directors and in this capacity they are in a position to influence the manner in which the trust is administered. The composition of the Board can be changed from time to time to bring in members of succeeding generations and in this way involve them in the management of the family affairs. The company itself will generally be administered by a fiduciary in the chosen offshore location and which will be represented on the Board.

A professional trust company will often not be in a position to offer the settlor the degree of flexibility and the speed of response he is looking for and its employees cannot be expected to be as familiar with the business of companies owned by the trust as will be family members. Decisions may have to be referred internally and independent advice taken before they can be put into effect. If a change of trustee is desired it can be a lengthy and expensive process. With the Private Trust Company however, problems such as these can be largely avoided. People familiar with the business make the decisions and a change of direction for the management of the trust can be achieved by changing the Board of the Private Trust Company.

Although it all sounds simple there are some other considerations, which must be taken into account. All the major offshore locations now have a licensing regime for professional trustees and the Private Trust Company may have to apply for a license. This means that, not only will its owners and officers have to qualify, and proposed changes be approved in advance, but also that the ongoing compliance formalities could be onerous. The directors will also have to remember at all times that when they are taking decisions in relation to the trust; it is the interests of the beneficiaries as a whole, which must be considered. They should not be unduly influenced by their personal circumstances, something that is not always easy. The Private Trust Company is nevertheless the right solution in the appropriate circumstances.

Ref: CO270406

Chesterfield provide offshore trust consultancy, management and administrative services covering offshore company and trust formation and offshore partnerships and management for trading, investment holding, asset management and estate and tax planning. For more information on these services and buying a property in the UK visit http://www.chesterfield-offshore.com

Trust Deeds – Breath A Debt Free Life at Easy Terms

Writen by Linda R Davis

Trust deeds are considered as a convenient settlement of debts a debtor is no more able to pay off. The trust deeds are a method used in Scotland for easy clearance of debts. Usually elsewhere for lessening and time bound pay off of debts, debt management program is sought by the debt ridden person. But trust deeds are quite different from any debt management. While in debt management there is complete payment of the debts in a certain period and usually involves a fresh loan, in trust deeds the emphasis is on making an accepted debt clearing plan legally binding to the lenders.

Usually trust deeds are opted for when a debtor has come to worst financial situation where he can no longer pay for the clearing debts. In such a case the debtor usually files for bankruptcy. But trust deeds enables in avoiding bankruptcy. In other words trust deeds are a respectable alternative for bankruptcy.

Under trust deeds, the debtor makes a proposal to his creditors for paying off the debts in an agreed duration. But the preparing of the proposal requires a careful calculation of debtor’s financial position. The proposal is sent to the creditors for their suggestion and on the base of various suggestions if any, the proposal is redrafted and is sent again to creditors. When the proposal is accepted and signed by the creditors, it becomes a trust deed and is legally binding on all creditors.

The advantage of trust deeds is that lenders can not impose any interest rate anymore on the debtor as the main aim of trust deed is to clear the debts and not to take interest. Another big advantage of trust deeds is that for clearing debts a certain duration which usually is of three years is agreed upon and after the duration if the debts are still remaining then rest of the debts are written off. This way actually, the debts are cleared easily and with lesser amount.

Trust deeds allow debtors a free of worry life as far as apprehensions of legal action from creditors are concerned. Creditors can not take a legal action against the debtor after they have signed the proposal. All the queries of creditors are handled by the licensed insolvency practitioner who assisted in forming trust deed. In fact it is necessary that trust deed is drafted with the assistance of licensed insolvency practitioner.

While drafting the proposal, licensed insolvency practitioner makes it sure that the amount of debts mentioned in the proposal is payable for the debtor. To do this, the practitioner ensures that after paying debts, the debtor still has enough amounts left for meeting routine expenses.

Trust deeds are done despite bad credit of the debtor. The borrower is not allowed to borrow money till the duration the debts are cleared. So there are no risks involved. Trust deeds can be rejected only by the creditors who hold 33 percent of total debts. But usually there is no rejection as main aim of creditors is to get back the loaned amount anyhow. Moreover a notice of rejection or objection has to be issued by the creditor within five weeks of getting the proposal. So if no objections are issued by the creditors, trust deed completes its term successfully.

An Estate Planning Primer

Writen by Bill Willard

An estate plan can be designed by clients and their professional advisors to achieve the client’s personal and financial objectives. Or, it can be an arrangement imposed upon survivors by state intestate succession laws if someone dies with