The world of trusts is fascinating, if not somewhat enigmatic. Trusts, in general, are an important part of estate planning because of the beneficial tax treatment of testamentary (arising as the result of a death) trusts. However, trusts are used by parents and others for a variety of specific purposes besides tax planning. Over the next few weeks, I will offer a brief introduction to some of the ways that trusts are used to protect a child’s inheritance. (more…)
Archive for the ‘Trusts’ Category
Protecting My Child’s Inheritance – Understanding How Trusts Can Help (Part 1)
Monday, March 1st, 2010
Avoiding Probate Fees on Insurance Proceeds
Thursday, January 14th, 2010If the deceased named a beneficiary on a life insurance policy on the deceased’s life, the surviving beneficiary receives the proceeds directly. The insurance proceeds are not included in the value of the estate for purposes of calculating probate fees. However, if the beneficiary has predeceased and no contingent beneficiary has been named, the insurance proceeds are payable to the estate and are included in the value of the estate for probate purposes. (more…)