Estate planning helps you and your loved ones attain more peace of mind for the future. If you wish to leave funds to your children or other heirs in case of your death, you may want to set up an education trust for them. Here are some things you should consider about an education trust.
Setting up an education trust to cover costs
Trusts are one of the ways you can leave relatives or non-relatives money to be used for education when they come of age. Funds can be allocated for tuition costs and living expenses.
There are a variety of choices here. Funds can be set up that only deliver money if school is attended. If your kids, grandkids or other beneficiaries do not attend school, they don’t receive the funds. If you are concerned that the inheritance you leave may be spent on items you don’t wish to support (vehicles, credit card debt, traveling) than setting up an education trust is a more specific option that will ensure the money goes where you want and it will also serve as an enticement for the potential recipients to continue their schooling.
Skip probate hassles
If you redistribute your wealth and keep certain items out of your probate estate, you may be able to avoid the numerous privacy concerns and costs associated with traditional probate.
Setting up an irrevocable life insurance trust is one of the most common tax-savings trusts to set up. Upon your death, life insurance policy proceeds regarding the death benefit amount are re-deposited back into your estate. This can transform an estate that is not subject to federal estate taxes into one that ends up owing the IRS money. The flaws in this system are obvious.
Establishing an irrevocable life insurance trust acts to shelter life insurance death benefit proceeds from being taxed by the estate. Once this trust is set up, life insurance is still active. Beneficiaries can receive policy proceeds after your death without worrying about estate taxes. This can free up extra money that may also be used for education purposes.
The gift that keeps on giving
Leaving your loved ones money to further their education will help them carve out a life for themselves. So many graduates are inundated with debt upon graduating. They often have to take mediocre jobs while attaining relevant work experience to secure their career. Setting up a trust to cover their expenses will not only pay for their advanced schooling but it will also allow them to enter the workforce with far less or possibly even no debt. This is a major burden lifted for young graduates just getting started in the world.
Choose an attorney who specializes in estate planning
Protecting your assets after you are deceased is one of the main reasons estate planning is so vital. Speak with a reputable lawyer who specializes in setting up trust accounts for covering educational costs and more. They will be able to discuss the benefits and the things to be aware of when drawing up your legal documents.
Share your plan with loved ones
While some may prefer not to discuss the details of their estate planning, it is often a wise idea to let those who are involved know your plans before it is revealed in your will. This can provide a delicate platform for discussing your wishes while you are alive and answering any questions or concerns your executor or family members may have.
The goal of financial planning is to achieve peace of mind and have a checklist to follow in the event of your death. Discussing options and sharing your wishes during your lifetime can be an informative part of your decision making process.
Attorney Jonathan Meek has helped many individuals with their estate planning needs and he is ready to assist you as well. Contact him at Meek Law Firm today to discuss your options. Call (704) 848-6335 or use the contact form on the right of this page to schedule a consultation appointment.
All loving parents are concerned with securing their children’s financial futures. To this end, many of them will set money aside to see to it. However, they also want it to be dispersed in the right time and in the best way. There may be concerns that the children will receive the money before they have the maturity to make sound financial decisions. Plus, some parents want the money to be available to the child only for specific and critically important uses, like for healthcare or education.
Trusts are an important part of your estate plan when you want to leave money to your children. They can be complex to establish and once they are it’s best to have someone provide administrative oversight of them. For these reasons it’s best to work with a trusts attorney who can create trusts that meet your needs and offer services for ongoing administration. The following are some of the benefits of creating trusts for your children.
Provides educational funds
Trusts can make funds available to your children and grandchildren and other relatives of your choosing. In the event of your untimely death some of these relations will need money to continue their education. The trust fund you have established will allow for this purpose. Thanks to your wise financial planning there will be money for tuition fees, books and other education related expenses. A trust is one of the best means of guaranteeing that your offspring achieve their educational goals.
You set the terms for dispersal
The trust fund money you set aside will be administered by your attorney. You can designate that it be doled out according to a variety of benchmarks. These could include reaching a certain age, achieving a goal like school graduation or meeting a life milestone like getting married or having a child. Your estate planning lawyer will make sure that the terms of the trust have been met before distributing the funds. This means that even though you are no longer here, your wishes will continue to be respected with regard to your financial gifts.
Protects your children from sudden wealth
Some people question why it’s more beneficial to set up a trust for one’s children than to simply let them inherit everything. They reason being that “they’re going to get it all anyhow.” The fact is that the benefit depends on the heirs in question. The difference might be slight in some cases, but in others it will be huge.
Suppose you pass away and half a million dollars is immediately inherited by your 18-year-old child. Will they have the maturity to make sound financial decisions and ensure their future? Or, will they spend the money you accumulated on luxury cars, electronics and the guys or gals who catch their eye. The answer will vary from case to case. But if you have any concerns, you can establish a trust that will parcel out funds in the amount and on the schedule you deem best. This allows you to protect your children from their own financial inexperience even when you aren’t here to guide them.
Teaches the importance of saving
Creating a trust for your children not only enables you to put money away for their future, but also teaches them an invaluable life lesson on the proper way to handle financial matters. They will learn the importance of saving money for the future from growing up in a household where this principle is put into practice. The financial wisdom you are imparting to your children will become increasingly critical as they grow older.
As noted above, if you are interested in establishing a trust account for your children or grandchildren you should work with an experienced trusts attorney who understands this area of estate planning. Meek Law Firm would be happy to assist you in creating and administering your trust. For more information, contact attorney Jonathan Meek today. Call (704) 848-6335 or use the contact form on the right of this page to schedule a consultation appointment.
If you’re like many people, you probably feel like you have a long time to figure out your will and other estate planning matters. However, the unfortunate fact is that many people wait until it is too late, and the result is problems for them or their loved ones later on. Now matter how young or old you might be, now is the time to hire a good lawyer to handle your estate planning. These are a few reasons why you should get your affairs in order today.
Plan for your future
Estate planning isn’t just about planning what will happen when you die. It is also important if you want to make plans for your retirement, such as where you will live and how you will take care of yourself. You can also assign future power of attorney to a family member, who can take control of your finances and legal situations if you are no longer able to do so.
Many people don’t plan for their futures, and their loves ones don’t know how to handle things later on. If you work on planning for your future now, however, you can help ensure that things go as smoothly and as well for you as possible.
Ensure that your wishes are followed
Most people have certain final wishes that they would like to have followed when they get older and when they die. For example, you might not want to be resuscitated in an emergency medical situation, or you might prefer to be cremated rather than buried. With estate planning, you can put together a list of all of your final wishes, including where you would like to be buried and which funeral home you would prefer to take care of such matters.
You can also add your division of assets to your will. If you have certain family members or friends in mind to whom you would like to bequeath any or all of your assets, you can detail these things in your will. Although thinking about such matters right now can be tough, it’s important to do if you want your wishes to be known and to ensure that your belongings and property end up in the right hands.
Prevent family disputes later
Although it is sad, a lot of families get torn apart because of disagreements over wills and property. If it isn’t made clear now about who you would like to receive all of your belongings when you die, your loved ones could end up arguing over it for years. This is obviously upsetting for any family to go through, and you probably want to prevent as many of these problems as possible.
Luckily, a will can help. By putting everything into writing now, you can help make these things clear to prevent any problems later on. Then, your lawyer can distribute everything as you have directed when the time finally comes.
As you can see, there are many reasons to see a good lawyer to start talking about estate planning. It doesn’t matter if you are young or old, now is the time to get started. Attorney Jonathan Meek has extensive experience with all aspects of estate planning and can easily guide you through the process of putting your affairs in order.
Contact Meek Law Firm today to discuss your estate planning needs. Call (704) 848-6335 or use the contact form on the right of this page to schedule a consultation appointment. We look forward to working with you.
Many people don’t like change in their lives, which means that separations of any kind can be difficult. When the separation is between married partners, the emotional toll is even greater. If you are separating from your spouse, having the right counsel to guide your legal separation is a vital component of protecting your interests. Here are some important things to think about if you are considering a legal separation.
Save yourself stress
Not everyone handles stress in the same way. We all have different coping mechanisms, and this is a natural time for some people to experiment with different methods. Unfortunately, some of the more common coping behaviors will often make the situation worse. Here are some of the practices to watch out for:
One of the best ways to protect yourself from making bad decisions during your separation is to hire an experienced and reputable attorney who will consider your best interests when your own judgment might be clouded by overwhelming emotions or external factors. It’s also not uncommon for the two opposing parties to completely stop talking to one another during legal proceedings. Having a good lawyer to field any questions and address any concerns will keep the separation process moving forward and enable you to sleep much better at night.
The division of assets can be an extremely emotional and exhausting ordeal to discuss. It is common for couples to fight and disagree on what seems fair. This is particularly true when retirement funds, workplace investments, stocks, bonds and other financial considerations come into play. Allowing your lawyer to step out front and guide you through this difficult process can help you attain a fair agreement while lessening your exposure to the conflicts.
Placing your children
One of the most important issues that must be settled during your legal separation is determining the best placement for your children. Each parent’s ability to create a healthy home environment, time availability and financial ability to meet the children’s needs will be reviewed. Based on the findings, temporary child custody and visitation agreements will be drawn up. If the separation leads to divorce, either parent may move to have the children’s placement changed by the court.
Paperwork to show your lawyer
Getting prepared in advance will help you maximize your time with your attorney and streamline the process. The following documents are a good idea to have on hand when you show up for your first meeting:
An experienced lawyer will help you fine tune any of the above points and further define your goals. More importantly, your legal counsel will support you through this potentially traumatic time, ensuring that your emotions don’t lead you to make decisions you will regret later.
Attorney Jonathan Meek has guided many individuals through the legal separation process and he is ready to bring his education and experience to bear to assist you as well. Contact Meek Law Firm today and schedule a consultation to discuss your needs. Call (704) 848-6335 or use the contact form on the right of this page to set an appointment.