There are many aspects of estate planning that are important parts of wealth protection and planning. Asset protection is one part of estate planning. People who engage in asset protection planning usually do so within the context of overall estate planning.
The most common estate planning tools are the will and the living trust which provide instructions to your family about what is to be done with your assets after your death. Most wills have to go through probate, whereas assets held in a living trust are not probated. Irrevocable trusts are used most often to give money to minor children or to own life insurance. Properly drafted estate planning tools minimize estate tax liability.
What is a Will? A last will and testament is a formal document where you express your wishes and desires concerning the disposition of your property (assets) after death. With a few limitations, you can give property to whomever you want and for whatever... Continue reading
What is a Living Trust? A revocable trust (or a “living trust”) is a popular estate planning tool. As with any other trust arrangement, a living trust is an agreement between three parties: the settlor (or grantor), the trustee, and the beneficiary. The... Continue reading
Probate is the legal process of administering the property of a decedent. The primary concerns of the probate court are: (i) determining the rightful heirs to property (whether such heirs or designated in a will or by laws of intestacy); (ii) making sure the... Continue reading
A probate administers that property considered part of the "probate estate." The probate estate includes all personal property, all real property other than homestead, and legal rights of action against third parties (i.e. existing or potential lawsuits).... Continue reading
During the probate administration of the estate the personal representative has possession and control of all of the assets of the estate. The personal representative's primary duty is to protect and preserve the assets and also to see that the assets are... Continue reading
What is an Insurance Trust? An irrevocable life insurance trust (an "ILIT") is an irrevocable trust created for the principal purpose of owning a life insurance policy. As with any other trust, the insurance trust is a contract between a grantor and a trustee... Continue reading