29 August

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Asset Protection for Your Heirs

in Asset Protection, Avoid Probate, Estate Planning, Protective Trusts, Revocable Living Trust, Wills & Trusts

I am often asked whether the revocable living trust we use as the cornerstone of our estate plans provides asset protection – protection from the creditors of the person creating the trust. The answer is no. While the revocable trust is a great estate planning and probate avoidance tool, it is not an asset protection trust. When you create this trust, you still have full control over the assets in the trust. Because of this, the law recognizes that they are your assets, and your creditors can get to them in the same way as if they were in your...

08 August

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Estate Planning – Who Needs It?

Posted by Libby Banks

in Asset Protection, Avoid Probate, Estate Planning, Power Of Attorney, Revocable Living Trust, Wills & Trusts

Who Needs Estate Planning? Many people, when they hear the words “estate planning,” don’t think it applies to them. “I don’t have an estate to plan!” they may say. I think this comes about from the use of the word “estate.” The word is often used to refer to the mansions and real estate holdings of the rich and famous. But the definition of an estate is “all of the things that a person owns.” In other words, your estate is the sum of your stuff: your home, your bank accounts, your stocks and bonds, your retirement account, your cars and boat, and...

01 November

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Different Trusts Meet Different Needs in Your Estate Plan

Posted by Libby Banks

in Asset Protection, Avoid Probate, Estate Planning, Pet Trusts, Revocable Living Trust, Wills & Trusts

There are a number of different types of trusts we use when doing an estate plan. Here is a bit of information about a few of the most common trusts. The Revocable Living Trust The primary trust we use in estate planning is the Revocable Living Trust (“RLT”). It is the foundation of most estate plans and has many benefits. It contains instructions for managing the assets in the trust during your life, upon your death, and if you become incapacitated. The RLT will also avoid the need for a probate court proceeding on your death. You can select the person(s) who...

02 October

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Asset Protection for Your Heirs

Posted by Libby Banks

in Asset Protection, Revocable Living Trust, Wills & Trusts

I was asked recently by a client whether the revocable living trust we were creating for him would protect his assets from his creditors. The answer is no. While the revocable trust is a great estate planning and probate avoidance tool, it is not an asset protection trust. Because you still have full control over the assets in your revocable living trust, the law recognizes that they are your assets, and your creditors can get to them in the same way as if they were in your personal name and not in your trust. I went on to tell him that while...

01 August

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Estate Planning – Who Needs It?

Posted by Libby Banks

in Asset Protection, Avoid Probate, Estate Planning, Power Of Attorney, Revocable Living Trust, Wills & Trusts

01 July

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On The Road Again! Are You Ready for Vacation?

Posted by Libby Banks

in Asset Protection, Avoid Probate, Estate Planning, Power Of Attorney, Revocable Living Trust, Wills & Trusts

For many of us, it’s an exciting time. A whole year of isolation is coming to an end and travel is on the horizon. But are you truly ready for that trip? You may need to be sure your estate plan is in order before you hit the road. Here are some thoughts on getting things done before your trip. 1. Make sure you have guardians in place for minor children. If you have minor children, it’s crucial to have documents in place appointing guardians, especially if you are traveling without them. Don’t leave this to chance, or worse, to the...

04 June

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The Biden Tax Plan and Your Estate

Posted by Libby Banks

in Asset Protection, Avoid Probate, Estate Planning, Revocable Living Trust, Wills & Trusts

With the advent of a new administration usually comes change. President Biden’s tax plan may affect your estate planning adversely. Here are a few key points of the plan. Estate and Gift Taxes May Increase: Arizona has no estate taxes. On the federal level, each person has an estate and gift tax exemption – the amount you can give away during life and at death before being taxed – that is currently $11.7 Million. Biden’s plan would reduce the federal exemption to $3.5 Million for estate taxes at death, and $1 Million for gifts made during your lifetime. The plan also proposes to...

10 March

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Estate Planning for the Blended Family

Posted by Libby Banks

in Estate Planning, Revocable Living Trust, Wills & Trusts

In first marriages, a couple generally have identical goals for their estate planning: take care of the surviving spouse for as long as he or she lives, then distribute what’s left to their children. But second marriages can be different. The blended family – his children, her children and sometimes their children as well – makes for more complicated planning. Each spouse may have separate assets as well as their joint, community assets. Both usually want at least some of their assets to go to their own children after they die. At the same time, they want to make sure the...

18 January

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Out With the Old, In With the New

Posted by Libby Banks

in Estate Planning, Revocable Living Trust, Wills & Trusts

As we start the New Year, I wanted to talk about older methods of estate planning versus newer, more efficient and cost-effective means of planning. Your estate is simply what you own. For most reading this article, that at least includes a home, a retirement account, bank accounts and maybe a brokerage account. In the not-so-distant past, planning for your estate at death meant preparing a Last Will and Testament. Today, we use the Revocable Living Trust more often. There are many benefits to using the Revocable Living Trust, but often people think that only the wealthy need a Trust. I think...

13 August

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How the Revocable Trust Works for You

Posted by Libby Banks

in Estate Planning, Revocable Living Trust, Wills & Trusts

The Revocable Living Trust is valuable for many estate planning needs, but one of the most obvious is the avoidance of all the time and expense of probate. I like to think of your Trust as your treasure chest. Your assets, the things you worked and saved hard to have – go into your Trust – into your treasure chest. While you are alive and able, you are taking care of the treasure chest as the trustee. If you can’t take care of your treasure chest anymore, either because of your death or because you are incapacitated, you have named a...