While end of life decisions may be a topic most people want to avoid, having these conversations with your family members can actually do more good than harm.
In a previous blog on Revocable Living Trusts [REVOCABLE LIVING TRUSTS- Practical Management & Transfer of Assets, posted July 9, 2015], I mentioned the use of Irrevocable Trusts as a tool for certain tax planning, which included reference to a “Charitable Remainder Trust”. This blog will discuss what a Charitable Remainder Trust is, how it’s created, and whether it is something you might or should consider putting into place as part of your estate plan.
There are many reasons for considering the use of a Revocable Living Trust as part of your estate plan, which involves the creation and funding of a stand-alone trust agreement during your lifetime (a/k/a “inter vivos trust”) instead of creating trusts after your death by including trust provisions in your Will (a/k/a “testamentary trust”).
Statistics show that we are living longer than previous generations and that we are more likely to experience a disabling mental or physical condition prior to our death.
The only income tax assessed in Tennessee is the Hall’s Income Tax, which is a 6% tax on earnings from stocks and bonds.
Problems can arise after the death of one spouse who has failed to plan or made no plans for the division and distribution of their assets, particularly if both spouses have adult children from a prior marriage.