Estate Preservation: Understanding Documents & Taxes скачать в хорошем качестве

Estate Preservation: Understanding Documents & Taxes

Did you know that a beneficiary is the most powerful designation at time of death? This designation overrides what a trust says and also what a will says. Make sure you get it right! Follow along to ensure the appropriate beneficiary designations for you. List the beneficiaries full name, date of birth and social security number. This information leaves no room for error or confusion and ensures the beneficiary can move, marry, or divorce without any confusion. This designation allows you to bypass probate and have your assets sent directly to the beneficiary. BENEFICIARY MISTAKES: Mistake #1: Leaving the beneficiary designation blank thinking your will will cover it Mistake #2: Naming your estate as your beneficiary. This is like volunteering to sit in a traffic jam versus taking a shortcut. Again, list your beneficiary by name, social security number and date of birth. Mistake #3: Naming a beneficiary by relationship only. For example, listing "my living, legal, lawful children." Now your children need to prove they are your children. If you don't have kids or are not finished having kids, then make sure to update this as soon as you can. This mistake leads right into the next mistake! Mistake #4: Setting and forgetting your beneficiary designation. For example, listing your parents before you get married. If this happens then your assets will go to your parents and not to our spouse. If your parents are deceased then your assets go to the heirs of your parents, most likely your siblings and more specifically your sister, not your spouse - regardless of what your will says. Mistake #5: Leaving an ex-spouse on as your beneficiary. Mistake #6: Designated beneficiary gets lost during a merger or acquisition, usually during a bank merger. If your bank or financial institution changes names, simply ask to redo your beneficiary paperwork. TRUSTS The next most powerful documents at time of death, after the beneficiary designation. A trust is like a pocketbook that holds your assets. There are two basic types: #1: Revocable Trust - This trust can be changed, cashed out, and over or under-funded. This type of trust uses your social security number to generate a tax ID# so it's the same as you. It is sometimes referred to as a "Living Revocable Trust" and can offer restrictions on how assets are used overtime. #2: Irrevocable Trust - This type of trust is separate from you, offer creditor protection and has a separate tax return. Because it's separate from you it generates a unique tax ID or EIN number. This type of trust is no longer your asset so a creditor cannot go after it if you have financial hardship. This is a powerful tool in estate planning. Keep in mind that ALL TRUSTS are still overridden by all beneficiary designations. WILLS This is the weakest of estate planning documents but is still important. It doesn't matter what your will says about a particular asset if a trust owns it or there is a beneficiary designated on file for said asset. A will names the executor (a male) or the executrix (a female) who acts as the boss or the person in charge of your estate at time of death. This is an important role. Things to keep in mind when preparing your will: 1. Your will should be signed by a witness and should include an extra page called an affidavit that self-proves the will and the witness(es). This paper validates it. 2. It is best NOT to list individual assets in your will because this is a public document filed for whomever to see. Any assets included become probatable and will need to be appraised and taxes will be assessed based on your state's inheritance tax. If you include assets, you are basically listing items for the government to tax on behalf of your heir(s). Leave this type of stuff (#2) up to the executor. Write them a "letter of instruction" but do not attach it to your will. Also, do not sign it. Simply initial it and date it and as things change or get added to this letter of instruction make notes, cross things out or add things and re-initial and date. Items that should be included in a letter or instruction are things like jewelry, silverware, antiques, even cars. But mainly smaller household items and heirlooms. You can control assets after you're gone by using a "Restricted Beneficiary Designation" this uses a formula for asset distribution, such as stating "you can withdraw 20% of these funds annually over a five year period until asset becomes liquid." This designation is like a trust but without the expense or complexity of a trust. If you are interested in learning more about Taylor Retirement Services, call us today at 1-800-482-4720 or visit us online at: https://TaylorRetirementServices.com/ For more great content and our ongoing video series, subscribe to our YouTube Channel:    / @taylorretirementservices   Lastly. like us on Facebook:   / taylor-retirement-services-inc-13882430287...