Organizing Will and Testament
The Testament and Last Will should always be in place to make it clear that a person’s wishes for the future of their possessions and acquisitions in the case of their demise are taken care of according to their deepest desires and wishes. Making a Testament and Last Will is essential in protecting one’s real property and other personal assets.
Types of Estate Planning include the following:
Setting up a trust could help to navigate specific tax law concerns, protect from creditors and protect wealth. This support protects assets and family lineage by transferring assets to heirs.
Testament and Last Will –
An individual should consider having a Testament and Last Will to communicate their final wishes concerning the interest in the property and valuables they possess. The Testament and Last Will should address heirs and the allotments to be passed down, along with the caretakers of their children, their spouses if it applies, or other loved ones. Also, the Testament and Last Will should address the deceased Estate Planning and all other legal affairs. A person may wish to record their Testament and Last Will, or they may record a legal document specifying any particular items granted or handed down to the desired persons in their life.
Living Trust – based on how one wishes to manage their asset and designate.
Irrevocable Trust/Testamentary Trust – This Trust cannot be changed without the beneficiaries’ consent.
Irrevocable Life Insurance Trusts/ILIT – used to set aside funds for estate taxes or useful if one owns a family business to remain part of one’s estate after their passing. As explained by law, “the business could remain in the family despite estate bills when gifting the premium of this type of insurance each year.” This policy is forwarded to the trustee(s).
Trustor Retained Annuity Trusts(GRATs) – This irrevocable Trust is intended to last for a specific term of years. Further explained, these trusts are funded with the contribution of assets and receive annuity payments regularly. However, the asset would rise and fall in value.
Qualified Personal Residence Trusts (QPRTs) – Setting up this Trust applies to transfer assets to beneficiaries, such as real estate. This Trust usually is ten years. However, if one remains in their home during the period of the Trust but passes during the term of the Trust, the estate goes to their heirs.
Revocable Trust: This Trust can be changed by its creator.
Beneficiaries and Heirs – To manage written into one’s Trust
Will and Trust Counsel – Understanding types of wills and Trust
Living Trust – Initiating plans and care for one’s assets.
Asset Protection Trust– To assure and protect those assets for oneself, family, or any charity.
Advance Directives – Second Marriages and Protecting One’s assets for their children and lineage.
Ethical Will: This is a Will one creates to communicate one’s values, experiences, spiritual values, memories, wishes, and life lessons to family members. This is a personal Will created.
Bill of Transfer for Living Trust: Take the weight off one’s shoulder by planning how to transfer property when no longer here. This includes how land, jewelry, and all personal items would be distributed and to whom they were assigned as trustees. By law, the Bill Transfer cannot transfer property with titles such as estate property or vehicles without considering filing a Quitclaim Deed. Quitclaim Deed – a tool to transfer or divide property/assets without warranties. They are transferring released property ownership rights to family or others.
Charitable Trust: This Trust could be assigned to the beloved one’s children after passing, would receive an income, or a charitable contribution would go to chosen charity organizations.
Special Needs Trust: This Trust is set up for individuals who require special needs and are eligible for government benefits due to their disability.
Tax By-Pass Trust: “The bypass trust is an unalterable trust used to avoid gift tax to limit the taxation of assets following the Death of a married spouse. Similar names for this Trust are A.B. or Credit shelter trust, which helps minimize or eliminate the federal estate tax.”
A domestic asset is a self-settled trust to protect assets from future creditors. Thus, protecting one’s assets for their children and from a divorce (so that a spouse would have claims on assets.) Please note that this Trust may not be available in every state or country.
Generation Skipping Trust/GST – this Trust may protect one from estate taxes. Skipping a generation and leaving Trust to grandchildren, not directly one’s children, prevents hardship on those direct inheritance of assets. Make sure that those assets continue to grow for generations.
Constructive Trust – filing of this Trust imposed by a court to benefit one wrongfully deprived of their rights due to unjust enrichment or breach of fiduciary duty. Constructive Trust could be used as a tool in estate planning.
Business Asset – applies when starting a trust for business purposes. Planning for these assets (stocks, asset trust, etc.) should understand all applicable tax laws applied, including state and national laws and any other legal matters.
Land Trust – applies to the ownership of the land where the business stand. If someone sues the business, the land will be safe if held in a trust.
Subscribed members should file legal documents based on their countries’ laws, codes, and regulations. All legal documents should coincide with the laws and guidelines within their country of residence where it needs to apply.