10 March 2014 0 Comments

Financial Planning Options

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iStock 000001334173 Medium 300x200 Financial Planning OptionsSome people believe that estate planning is only for the wealthy. This could not be farther from the truth. In fact, it is often more important for persons who are not so wealthy to have a plan.

Choosing to draft a will is one of the most important and loving gifts that you give to those who are important to you.

Usually, spouses leave their estate or the largest part of their estate to their spouse. There can be good reasons to leave assets to a trust for the benefit of your spouse. A trust for your spouse can be created in a will or a revocable living trust.

Assets in a credit shelter trust are not considered for estate tax purposes when the surviving spouse dies. This allows a married couple to double the amount they can leave – free of state and federal estate taxes.

In another type of trust, a special needs trust – assets will not be considered when determining the eligibility of the surviving spouse of Medicaid long-term coverage. This kind of trust allows protecting assets against the risk of the surviving spouse requiring long-term care.

In addition, assets place in a trust for the surviving spouse can also be used to ensure a later inheritance by others even if the surviving spouse remarries or changes his or her own estate plan. This can be especially important if your current spouse is not the parent of your children.

Estate planning – whether a will or a trust – is a mechanism for handling your probate assets after your death. If you are considering creating one or the other, but don’t know what is best for your situation, contact the experienced attorneys  of Holstrom, Sissung & Block family law firm. We can help you determine whether a trust for your spouse is appropriate in light of your wishes and needs. Find out more about our representation in estate planning and probate matters.

We are conveniently located in Riverside, San Bernardino and Orange Counties.

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