For many people, the most important part of estate planning is protecting the future of loved ones. A recent article offers four estate planning tips to do just that.
The first tip is to create a living trust. The creator of a living trust can put his or her assets in the trust to benefit his or her beneficiaries down the road. When setting up a living trust, the trust creator designates the person or entity that will be responsible for operating the trust, and also lays out his or her wishes for the management and distribution of the trust. When you pass away, the assets within the trust will pass to your beneficiaries according to your instructions.
Another tip is to own property in joint tenancy. Joint tenancy allows two or more people to own an asset in equal shares. When one of the tenants dies, his or her share of the asset automatically passes to the other tenants. Joint tenancy is a popular form of ownership for homes, securities, and bank accounts. This automatic transfer of ownership often helps to alleviate stress on family members at an already difficult time.
Another tip is to have payable-on-death accounts. A person can create a payable on death account by opening a regular account, then designating the person who should revive the remainder of the account upon his or her death. At the account owner’s death, the account automatically passes to the designated person.
For assistance in creating an estate plan that protects your family, contact us at (626) 696-3145.
