Category: Estate Planning
Simona Ondrejkova, CFP
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May 29, 2024
Buy-Sell Agreements: Why Your Clients Need One
If you have clients who own a business, it’s important to be familiar with the buy-sell agreement. This type of contract can act as both a business succession tool and an estate planning tool. Putting a buy-sell agreement in place can avoid potential threats to the continuation of the business that your clients have worked so hard to build or help avoid liquidity issues to ensure their loved ones are taken care of. If a partner in a business dies or exits the business because of a disability or other reasons, a buy-sell agreement provides the method for transferring that...
Madison Eubanks
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May 22, 2024
Is a Medicaid Trust Right For You or Your Clients?
Typically, we think of an estate plan as an arrangement to maximize wealth transfer and minimize taxes after a person passes away. However, there are some elements of estate planning that can take effect while a person is still living—like a Medicaid trust. In this article, you’ll learn what trusts and Medicaid have to do with one another, the advantages and disadvantages of Medicaid trusts, as well as when it may be appropriate for your clients to set one up. What is a Medicaid asset protection trust (MAPT)? [embed]https://justvanilla.wistia.com/medias/prx1k9xyba[/embed] A Medicaid asset protection trust—also known as a Medicaid trust or...
Madison Eubanks
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May 14, 2024
The Roles and Responsibilities of a Trustee
There are many different types of trusts that can be used in estate planning to achieve a range of various purposes and goals. One common element among all trusts is the appointment of a trustee to manage its assets. What exactly does a trustee do? This article will cover everything you need to know about trustee responsibilities, how a trustee should be chosen, and more. What is a trustee? [embed]https://justvanilla.wistia.com/medias/lzt8tzm231[/embed] A trustee is a person or entity that holds and administers a trust’s assets or properties for the trust’s beneficiaries. In general, a trustee is tasked with managing a trust’s...
Madison Eubanks
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May 08, 2024
Retirement Trusts: Are They Right for Your Clients?
The retirement accounts you've built over decades represent more than just numbers on a statement. They embody years of work, sacrifice, and planning for a secure future. While most people focus on growing these accounts during their working years, fewer consider what happens to these valuable assets when they're no longer here to manage them. This oversight can leave your financial legacy exposed to risks you never anticipated and beneficiaries unprepared for managing sudden wealth. Retirement trusts offer a level of protection and control that goes well beyond simply naming beneficiaries on your accounts. By creating specific instructions for how...
Simona Ondrejkova, CFP
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Apr 29, 2024
Survivor’s Trusts: Everything You Need to Know
Of the many different types of trusts out there, some are designed specifically to help married couples transfer their assets according to the wishes and needs of each individual within the marriage. These trusts can be structured to provide for the surviving spouse while also being mindful of estate tax considerations for the surviving spouse and future beneficiaries. What is a survivor’s trust? [embed]https://justvanilla.wistia.com/medias/fsmtiu16us[/embed] A survivor's trust is an estate planning tool used by married couples to ensure that after one spouse passes away, the surviving spouse will have access to a portion of the assets to provide for their...
Simona Ondrejkova, CFP
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Apr 15, 2024
Section 6166: How You Can Defer Estate Tax
Do you have clients who own a business or have just recently inherited one? When it comes to estate planning for business owners, understanding section 6166 of the US tax code could make a big difference in ensuring continuity of the business after the owner passes away. While there are several estate planning strategies that can help clients reduce their overall estate tax bill, those who own a business should also be aware of strategies to defer payments on estate taxes to keep their heirs from having to do a fire sale of the business just to pay taxes. So...
Simona Ondrejkova, CFP
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Apr 04, 2024
Schedule K-1 Forms: Managing Your Client’s Estate Income
When helping clients with their estate plan, taxes are one of the key components to take into account as part of the planning process. And while there are several estate planning strategies that can be used to minimize or eliminate estate taxes for clients, here we’ll talk specifically about taxes that an estate or a trust incurs on its income. One of the forms that clients should be familiar with if they are trustees, administrators, or beneficiaries of an estate or a trust is schedule K-1. Since there are a few different types of K-1 forms, it’s important to understand...
Madison Eubanks
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Apr 02, 2024
Letter of Testamentary: What It Is & Why You Need It
Creating a last will and testament is one of the most fundamental efforts in estate planning, and a key component is naming an executor to carry out the will’s instructions. The executor is the person who will administer the estate, sees it through the probate process, and settles the decedent’s final affairs—in short, it’s a big responsibility. Before the executor can begin administering a deceased person’s estate, though, the executor needs to obtain a Letter of Testamentary (also called letters testamentary). In this article, we’ll explain what a letter of testamentary is, why you might need one, how to get...
Simona Ondrejkova, CFP
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Mar 28, 2024
Should you use a transfer on death account (TOD)?
When it comes to estate planning, each individual’s needs dictate the simplicity or complexity of the solution that will best fit their goals. For those who care about avoiding probate, ease of distribution to beneficiaries, and simplicity of set-up, a transfer on death (TOD) account could be a great option. A TOD account provides a simple way to transfer assets to beneficiaries without the need for complex legal structures like trusts. Here, we’ll explain what a TOD account is, its main benefits and drawbacks, and how it can be used as part of an estate plan to transfer wealth quickly...
