3 Common Estate Planning Issues

Charitable Trusts

The charitable trust has some serious tax incentives, but there is more to the popular trusts than a tax shelter. They are by there very nature a great way to provide support for a charity of your choice.

It has become in vogue for many young retirees to donate their time to several of their preferred charities. For many of these retirees a charitable trust them to give a little back, both monetarily and via volunteer work.

A trust essentially transfers assets from one desired entity to another of choice, and does so in a timely and efficient fashion. By utilizing a charitable trust, you can be provided with a stream of income, from the charitable trust holdings that you can't outlive. When the time comes that you do die, your remaining assets inside the charitable trust transfer directly to your established charity. This explanation is a very simple one, and only scratches the surface when it comes to charitable trusts. Make sure to work with a well-seasoned estate planning team so that you and your charity receive the best.

Living Trust

Setting up a living trust is one of the most essential steps on the estate planning process. Though anytime we deal with the certainty of our mortality its never something to get excited about. But we must, as it's one of the most important financial planning steps we can take. A living trust allows us to be remembered in a way we'd like to be remembered. Whether we want to support a particular charity or bequeath to our dearest heirs a living trust is the way to go.

In very simplistic terms, a living trust is legal way to transfer your assets or desires from one entity to another. The individual that puts the funds in the trust is called the trustor; the individual that manages the said trust is called the trustee. And lastly, the beneficiary, the one individual or entity that receives the assets upon the event of your death. You can set up a simple trust relatively easily and without much cost these days online.

Living Will

In addition to the obvious above, the living will plays an extremely important role in today's estate planning.

A living will is something that everyone, save for a minor, should set up, regardless of age. A living will provides your instructions, the way you want to be treated, in case you are unable to make those choices, due to accident or other medical issues. A living will describes exactly what procedures can and can't be done on you. Moreover, and most importantly it describes whether you would desire resuscitation if you were to enter a non-responsive state.

Anytime someone sets up a living will it's important to go over desires with family members. So, before you rush out to the estate planning attorney's office, talk to your family about what you want and why you want it. In fact, having your family meet with the estate planning attorney along with you can clear up many misunderstandings. This ensures that there are no surprises your family will have to deal with in addition to the heartache they'll be shouldering.

Setting up a medical power of attorney along with a living will can be relatively simple to very complex. The more involved the are the more your wishes will be addressed when the time comes. This will ensure a top level of comfort to family during the rough times come from making those major medical choices. Guidance from an estate planning attorney can be comforting when dealing with many estate planning issues, but it is especially true when dealing with medical power of attorney's or living wills.