![]() You do not have any estate planning procedures in place. Imagine you are in a car accident and instantly slip into a coma. The most attractive reason to use a living trust is that the assets that are left do not pass through probate court, which is not only expensive, but your final wishes may not be carried out in the way you wanted. A trust will give direction as to where and how the remaining assets are dispersed once you pass away. Living trusts must be implemented for sound transfer of assets for those assets that do not have written designations in the first place. These designations are set when an account is opened, but how often are they revisited? It is critical to review these often, as family additions and separations can occur. The first would be to simply review beneficiaries on all assets that are able to have such designations, such as an IRA or 401(k). There are a few ways to direct your remaining assets. In addition to the importance of having all powers of attorney readily available in the event of you becoming incapable of making decisions, beneficiary designations should also be reviewed frequently to account for familial changes, additions and so on. This is a common mistake many couples make, but it is a simple fix if caught in time - prior to incapacitation. This would not be an issue if the stock was jointly owned or you had a durable power of attorney for finances. ![]() Technically, your spouse would not be able to sell the stocks to pay for your medical fees. You become incapacitated and require medical treatment that is above your available emergency fund or any other liquid assets you own jointly. The home is owned jointly, but the stocks were purchased in your name only. Say, for example, the major assets you and your spouse own are in stocks and your residence. By creating these documents, you will appoint a trusted individual to make decisions and take action on your behalf with matters relating to the above. The first of these is a durable power of attorney for property, finances and health care.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |