Archive for April, 2009
Common Types of Trusts
Trusts fall into two categories; revocable and irrevocable. Revocable trusts are often called living trusts, and they can be canceled or revoked at any time. Irrevocable trusts are permanent, once created and funded they cannot be canceled or modified.
Revocable Living Trusts
These common trusts are normally used to avoid probate. [...]
Estate Planning for the Chronically Ill
A recent Wall Street Journal article (4/5/2009) cited some prudent extra steps and some good ideas for individuals with chronic illness when they prepare their estates. Here is a quick summary:
1. Power of Attorney
This document allows others to act on your behalf - paying bills, filing taxes, etc. A ‘durable power of attorney’ [...]
Inheriting Debt
Can you inherit your parent’s bills when they pass away? Generally not. Careful planning can make sure you don’t fall prey to “Negative Inheritance”.
Normal secured debt (like car loans and mortgages) are backed by the asset, and by the people who signed or co-signed the loan documents. If you didn’t sign the loan documents on [...]
Irrevocable Life Insurance Trusts - 5 Reasons
First - what is an Irrevocable Life Insurance Trust (ILIT)? This special type of trust is set up to keep life insurance proceeds out of the estate. But there are other benefits; a recent article on JD Supra by the attorney John C. Martin covered ILITs (Irrevocable Life Insurance Trusts) and described key [...]