What Happens to My House When I Die in Virginia?
If you are an adult in the United States, you may have taken the time to have an estate plan prepared. If so, then your estate planning attorney may have set up a trust and placed your home in the…
Are You Too Young for an Estate Plan in Virginia?
Even though you may feel that you don’t have an “estate,” it’s clear that everyone needs estate planning. And though you may be young and healthy, and not really thinking about your mortality, this is the time to “get your…
Pet Trusts…What Happens to My Pet After I’m Gone?
Your dog, cat, bird, horse, rabbit, guinea pig… are all important members of your family. As part of the estate planning process, pet owners need to consider who will care for their pet(s) when they no longer are able to…
Is an Irrevocable Trust the Right Option?
As the word irrevocable implies, an irrevocable trust is a trust that cannot be revoked, modified, amended, or terminated by its creator, also known as the grantor, with very limited and specific exceptions. Once an asset has been transferred into…
What is the Difference Between a Special Needs Trust and a Revocable Living Trust?
Once you have made the decision to do some necessary estate planning, you may be a little lost as you try to determine which documents you need, as well as the differences between them. If you are including a trust…
Revising Your Estate Plan after a Divorce
If you are going through a divorce, revising your estate plan may be one of the last things you think about. Yet, not doing so could cause serious, unwanted consequences down the line. In other words, if you don't want…
5 Things to Know About a Revocable Living Trust (RLT)
Although a will may still be the first choice for many who want to pass their estate to their heirs, it is not the only choice. Among baby boomers, the living trust is fast gaining popularity. The reasons baby boomers are choosing a revocable living trust over a simple will are varied, but the primary reason may be to avoid the probate process. In fact, living trusts offer many before and after-death advantages. Five things you should definitely know about a living trust include the following:
- What is a living trust, and is it revocable? A living trust is a written document created by an estate planning attorney, which can be funded during your lifetime. A living trust is revocable because so long as you are mentally competent, you are allowed to make changes or even dissolve the trust any time you choose. You reserve the right to amend the trust, revoke the trust, alter the trust or change the trustee however you please. While the trust is the legal owner of it’s assets, the IRS treats you as the owner because you have not given up asset control.
- Why would I choose a living trust over a will? Both a will and a living trust contain your instructions as to who will get what when you die. The difference is that a will needs to go through a Probate Court process before the contents can be distributed to the intended beneficiaries.
New Law Helps Financial Planning for Special Needs Families
Rick Hodges, father of a special needs daughter, attended a financial planning seminar when his daughter was four. Mere minutes into the seminar, Hodges realized the seminar would be of little use for his particular situation. Most financial plans are predicated on the assumption that the children will grow up, go to college, become self-supporting, and then make their own financial plans for their own children. Hodges knew this would likely not be the path his daughter Audrey’s life would follow. Audrey has Downs Syndrome, and amid uncertainty regarding Audrey’s future, her father is certain she will require long-term financial support.
How the ABLE Act Came About
A group of Northern Virginia parents were instrumental in getting the Achieving a Better Life Experience (ABLE) Act through the House and Senate in December 2014. This bill reflects an increasing public awareness and acceptance of intellectual disabilities. The ABLE Act allows the person with mental disabilities to accrue a savings account with tax advantages worth up to $100,000, while keeping federal benefits. Individuals are allowed to keep Medicaid coverage no matter how large the account grows. Interest on the savings account is tax-free. Money in the savings account may come from family or friend contributions or from what the disabled person’s own earnings.
Benefits of a RLT According to Consumer Reports
A "revocable living trust" sounds very official, and even a bit confusing. What is it? Why have one? What is all of the "hype" by such financial celebrities as Suze Orman? Even official consumer organizations like “Consumer Reports” have gotten…
Can You Modify A Revocable Living Trust in Virginia?
Change is just a part of life. From changing the laundry detergent that we use to changing the kind of car we drive, the possibilities really are endless when it comes to change. But what happens when we need to…
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