Not everyone is always honest. This is an unfortunate fact of life. But betrayal by a close friend or family member is all the more painful. The story of Danny Tate is not a pleasant one, but it illustrates an important but often understated benefit of having a good revocable living trust.
One of the most critical areas of life and estate planning is providing protection for special needs children and beneficiaries. In supporting the needs of children and adults dealing with physical and mental challenges, the U.S. government is pretty good when compared to many other nations. However..
A recent Wisconsin Supreme Court ruling provided a big blow to “simple” Wisconsin probate avoidance plans and reinforced the need for a good revocable living trust by overturning a long-standing state and federal estate tax assumption. The court ruled that anyone receiving an inheritance through a “pay upon death” (POD) or “transfer upon death” (TOD) designation is not responsible for paying their fair share of state or federal estate taxes. Instead, those estate taxes are paid out of the residue of the estate. (http://bit.ly/ax3qLr)
One of the most critical areas of life and estate planning is providing protection for special needs children and beneficiaries. In supporting the needs of children and adults dealing with physical and mental challenges, the U.S. government is pretty good when compared to many other nations. However, the government is also very stringent in making sure that the person receiving support has no other means of support. This often leads to a quandary because parents and other relatives want to provide support in their estate planning documents, but parents know all too well that this well-intended support can quickly lead to a benefits being cut off until all of the inherited money is spent.
Are we really better off without the estate tax?
Don’t just assume that the law will take care of you. Be prepared and plan ahead to ensure your loved ones are provided for should something happen to you.