The following sections discuss three types of non-traditional trusts that function beyond financial considerations. They can help you address issues near and dear to your heart for extra peace of mind.
A spendthrift trust can alleviate your worries if you are concerned about a loved one with irresponsible spending habits. They restrict access to inheritances, allowing for controlled distributions over time or based on certain milestones. These trusts ensure responsible use of the funds and protect your loved one's financial security.
Pets hold a special place in families, and their future after you pass away can be a source of anxiety. Pet trusts offer solace by holding assets designated for their care. These funds cover expenses like food, vet bills, and even boarding, ensuring your beloved companion remains well-provided for, even in your absence.
Are you passionate about specific causes? Charitable trusts enable you to continue supporting them beyond your lifetime. They act as separate entities that hold assets for distribution among your chosen charities. A charitable trust can help you fulfill philanthropic goals, and you may also enjoy tax benefits.
With its favorable trust laws, Delaware can be an ideal location for establishing these estate planning documents. Consulting with a legal professional experienced in trust creation and applicable state laws can help to ensure your trusts are effective and fulfill their intended purpose.
]]>Your life will go through multiple phases that may bring significant changes. Here are some that may require you to revise your estate plan:
In addition to bringing joy and happiness, marriage also brings significant legal and financial considerations. Updating your estate plan to reflect your new status may involve including your spouse in your will and designating them as a beneficiary for retirement accounts or insurance policies.
The arrival of a new family member is another life event that should prompt a review of your estate plan. You will want to name a guardian for your child in your will and consider setting up a trust to provide them with financial security for their future.
A divorce can have a huge impact on your estate plan. You will likely want to remove your former spouse from your will and other documents. You may want to name someone else if they are your power of attorney. Changing the beneficiary designation on your investment accounts and insurance policies is also important.
The death of a spouse, child or other loved one is a devastating blow. It may also have profound implications for your estate plan. You may need to change beneficiaries, update trusts and name a different executor and power of attorney.
A substantial increase in wealth can affect your estate plan in several ways. You may need to implement strategies to minimize estate tax liability and avoid your estate going into probate.
Retirement is a major life transition. You may need to adjust your estate plan to reflect changes in income and potential long-term needs.
Estate planning is an ongoing process. An outdated plan may not accurately reflect your wishes and could lead to unintended consequences. Working with someone to review your plan can help ensure your documents are legally sound and continue to meet your goals.
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