estate planning Archives
Why professionals often may make the best trustees
A trust can be a powerful estate planning tool for a Connecticut resident. It can protect assets from creditors as well as minimize estate taxes owed. However, it is important that the right person is chosen to oversee that trust. In many cases, a spouse is not going to be the ideal choice to act as a trustee. This could be especially true for those who are in a blended family.
Passwords and estate planning
One element of estate planning some people in Connecticut may overlook is sharing passwords with an executor or family member so that online accounts can be accessed after a person's death. This issue does not just affect family or other heirs. As one example, the founder of a cryptocurrency exchange died suddenly in December without sharing the necessary password to access clients' investments, and there may now be $190 million of inaccessible cryptocurrency.
Estate planning for parents of kids with special needs
Parents of special needs children in Connecticut may wish to take special care when it comes to making their estate plans. There are certain types of plans that can help to provide support and protection for people with special needs throughout their lives. This can be especially important because kids with special needs may become eligible for different types of benefits that allow them to receive the care that they need. Some people may be unsure about how to plan for the future because they are unsure of the amount or type of professional support their children may need in the future.
Estate planning tips for single adults
Many single Connecticut residents without children neglect to create an estate plan. However, estate planning is important for all adults. Two of the most important items in an estate plan are a power of attorney and a health care proxy. These function while the person is still alive to ensure that agents are appointed to take over financial and medical decision-making in cases of incapacitation.
People may delay estate plans due to family concerns
Connecticut residents with substantial amounts of wealth are often concerned about how to navigate sensitive family relationships when making an estate plan. In many cases, the more complex details of estate planning reflect family concerns rather than difficulty dealing with the funds themselves. This was reflected in one survey conducted by Key Private Bank of its clients with at least $2 million in assets for investment.
How digital assets have affected estate planning
The law has always had to evolve to keep up with the times, and estate planning is no exception to that. In fact, estate planning has had to adapt to the recent rise of digital assets, particularly cryptocurrencies, and to change from a relatively straightforward process to one that that is trying to cope with the intricacies that come with a new type of assets.
Overcoming potential problems in an estate plan
There could be hidden problems in the estate plans created by Connecticut residents. In most cases, the most common hidden problem is the person who creates the plan. This is because that person may not name the appropriate people to fill roles related to executing the plan.
Art collections and estate planning
It's not uncommon for Connecticut art collectors to fail to make adequate estate plan provisions for their collections. In some cases, neglect may simply happen because of procrastination. This can lead to significant taxes on the collection at the owner's death, or it can result in family conflict. If a collection is not divided fairly among heirs, the family might end up in litigation.
Estate planning after remarriage
After the divorce or death of a spouse, it isn't unusual for people in Connecticut to remarry. While finding love again is often a source of great joy, it also brings some legal concerns. If one or both spouses have children from a previous relationship, estate planning is critical. When parents of adult or minor children get married again, they should immediately update their wills and estate planning documents, including those that govern insurance policies, retirement accounts and investment plans. In addition, end-of-life planning documents such as living wills, powers of attorney and advanced directives should also be updated to reflect the estate planner's wishes.
The characteristics that make wills and trusts different
Connecticut residents could choose to use a will or a trust as part of their estate plan. While either document can be effective in meeting a person's estate planning needs, there are many differences between the two. For example, a will needs to be filed with the court having jurisdiction and is only effective after a person dies. Furthermore, assets that are transferred through a will need to go through the probate process.
