Sun City Estate Planning Blog

Most people who engage in estate planning simply want to make sure that their loved ones are financially cared for after their passing. There are many ways to do this, of course, which is why individuals who find themselves in the midst of this process should carefully and thoroughly consider which options further their interests and the interests of their loved ones the most.

One commonly used estate-planning vehicle is the marital trust, also known as an "A" trust. Here, an individual funds a trust, which is managed for the benefit of that individual's surviving spouse. This means that money earned from the trust will be payable to the surviving spouse. In some instances, a surviving spouse may even receive distributions of the trust's principal. The trust then details to whom the assets will be distributed upon the surviving spouse's death.

While it is important for everyone to create an estate plan as they grow older, doing so is particularly important for you if you have a disabled or special needs child who will require considerable care in your absence. Providing lifelong care for your disabled child can cost millions, and one effective method of making sure your child has access to what he or she needs involves creating what is known as a special needs trust.

Creating a special needs trust, which you can fund using life insurance, among other avenues, gives you an opportunity to provide for your disabled child without limiting his or her ability to obtain assistance through other methods.

Estate planning can be an enormously complex endeavor. This is especially true when an individual identifies a number of heirs and beneficiaries and there are significant assets with which to deal. However, while passing down retirement accounts and homes can be relatively easy, the matter can become even more detail-oriented when dealing with personal property.

One reason why dealing with personal property during estate planning can be challenging is because it is often hard to track. Property can be misplaced or lost, and family members can even snatch them up unbeknownst to the owner. In order to better track this property, individuals should consider keeping an inventory that includes appraisals and other property-related documents, such as letters of authentication. This way, the executor of an estate can easily identify property and its location prior to distributing assets in accordance with an estate plan.

The creation of a trust can have a profound impact on its identified beneficiaries. If handled correctly, these estate planning tools can provide financial resources for years to come. The assets contained within those trusts can provide money needed for a beneficiary's education, a beloved pet's care, to further a charitable purpose, or provide a beneficiary with some extra cash to spend on whatever he or she desires. Trusts don't last forever, though, which is why this week we'll briefly look at how trusts can end and what happens when they do.

There are a limited number of ways that a trust can end. One way, of course, is when the trust's assets are depleted. If a trust only contains cash and all principal and interest has been distributed to a beneficiary, then the trust has no further purpose and will end. The same holds true when pieces of physical property are held in trust. A trust containing a house, for example, will end when the house is no longer in existence, such as if it is destroyed in a fire or natural disaster.