What is a Lifetime Beneficiary Protection Trust and is it Right for You?

Typically, when your loved one sets up a trust and you are the beneficiary of that trust, you will mourn the loss of that loved one when the time comes and then you will receive a call from the Trustee of that trust notifying you that you are to receive an inheritance of a certain amount. That Trustee will simply write you a check after all the assets are liquidated, and you will deposit it in your bank account. Is this the best way to receive an inheritance though? Is there a Better Way? Your loved one could have left the assets for you in a Lifetime Beneficiary Protection Trust. These trusts are designed to protect your inheritance. Many events happen over the course of someone’s lifetime

I Received an Inheritance. Do I Need to Update my Estate Plan?

If you have recently received an inheritance, you might need to update or create an estate plan. It depends on many circumstances. In this article I will discuss a few ways that receiving an inheritance can effect your estate so that you can better determine whether it is necessary for you to make changes. No Estate Plan, Will, or Trust If you do not have an estate plan in place and have recently received an inheritance, you should discuss creating a plan with a professional right away. Receiving an inheritance can subject you to new types of taxes and administrative fees. Likewise, you need to make good investment decisions. While an estate planning professional is an attorney and typically

Beware: Creditors can Inherit from You, Unless…

Most people do not know that a retirement account that you leave to a child, grandchild, or other beneficiary is accessible by creditors. If your loved one receives an inheritance from you in the form of an inherited IRA or 401(k), they will not have the same protections that you did from bankruptcy, lawsuits, or creditors. What can you do? Here are Three Choices for your Surviving Spouse: When it is time for your surviving spouse to make a choice about the retirement accounts they inherit from you, these are the options: They can take the cash. They can forget about tax planning or creditor protection and just cash everything out. This does not give creditor protection and it can result in

Beware: Recent Case Law Says Creditors Can Get to Inherited IRAs

Many of you may believe that IRAs are creditor protected and you are half right. An IRA or 401(k) and 403(b)s have creditor protection. This is not the whole story though. Due to a Supreme Court decision in the last decade, creditors can now get access to Inherited IRAs. If you are going to receive an inheritance and a significant portion is from an IRA or other tax deferred type of asset, you should talk to the grantor about possibly reviewing their estate plan. What can a review of their estate plan do to protect Inherited IRAs? Inherited IRAs can still be protected from lawsuits, divorces, and creditors by creating what is known as a Standalone Retirement Trust. This type of trust is set

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