estate planning Archives
People living in Connecticut and elsewhere often prefer to not consider their own mortality as well the mortality of those whom they love. Unfortunately, this very understandable aversion to the topic of death can lead to negative consequences for individuals and families.
A trust is an appealing estate planning tool for individuals in Connecticut who want to pass assets along to children and other descendants. A trust fund can be set up in a way that carefully controls disbursements of money and other assets. The exact way disbursements are handled is largely dependent on preferences and a trust creator's (grantor's) knowledge of how their designated heirs are likely to handle such assets.
It is possible that an individual in Connecticut won't spend all the money in his or her IRA before passing. Therefore, individuals should create a plan to determine who would get the unspent funds. There can be many benefits to naming a trust as the beneficiary to an IRA account. For instance, the trust can designate who gets the funds and when they are to be distributed. That may provide a layer of oversight for those who may not manage their money properly.
A beneficiary generally does not need an attorney during trust or estate administration proceedings. Typically, the representative of a Connecticut estate will represent a person who stands to collect money or assets from a deceased individual. The trustee will represent the beneficiary of a trust, and both the executor and trustee have a fiduciary duty to an heir. However, an heir may want to hire an attorney for the peace of mind that legal counsel may provide.
Business owners in Connecticut and elsewhere may not have a plan for what happens to their companies after they die. This can be problematic if there are no family members or trusted employees who can step up and run the business. Even if someone is willing to run the company, it may take time and effort to convince employees and customers to remain loyal to the organization. In many cases, the owner of a small business is also the face of the brand.
Connecticut residents and others who are married should have access to financial records and other critical household data. In the event that a spouse passes away or becomes critically ill, it may be necessary to gain access to a computer or to an online bank account. Not having access to a device or an account may make it impossible to deactivate social media accounts or put a stop to automatic bill payments.
Many wealthy people in Connecticut have created key estate documents like wills and trusts. After all, the ability to pass assets on to benefit loved ones in the future is a major motivating factor for people to develop their wealth. However, creating an estate plan is often the first step in an ongoing process that can help people to make sure that their future vision is intact. While many people may want to avoid unpleasant conversations about death, open discussion about estate planning issues can help to prevent future disputes and family problems, especially when significant assets are involved.
Simply having a will on file doesn't automatically mean assets will be transferred as intended when the time comes to fully execute an estate plan. This is because assets need to be properly titled to ensure they'll be distributed as per desired wishes upon the death of an estate plan's creator.
In a perfect world, proactive Connecticut parents or grandparents with high-net-worth estate planning needs would have their wishes respected by designated heirs or beneficiaries when they pass. Unfortunately, the reality is that squabbling siblings, spendthrift heirs and antagonistic step-relatives can sometimes complicate matters and contribute to legal headaches or costly court battles.
Estate planning is not something that many people in Connecticut and elsewhere look forward to. Some people may lie to themselves to justify not creating a plan of their own. One lie that people common tell themselves is that they don't need a will because they don't have a lot of money. The truth is that a will can be helpful even a person does not have any money or assets of any kind. This is because a will can dictate who obtains guardianship of a minor child or whether an individual is cremated or buried.