Understanding FDIC Coverage on Trust Accounts: A Crucial Aspect of Estate Planning
When it comes to estate planning, ensuring the protection and distribution of assets is paramount. Trusts are a popular tool utilized to safeguard assets and dictate their allocation according to the grantor's wishes. However, understanding the nuances of Federal Deposit Insurance Corporation (FDIC) coverage on trust accounts is crucial to safeguarding these assets for beneficiaries. At Botti & Morison Estate Planning Attorneys, we recognize the importance of comprehensive estate planning, which includes navigating the complexities of FDIC coverage. In this blog post, we'll delve into the critical aspects of FDIC coverage on trust accounts and how it impacts estate planning ... Read More
Understanding Trusts and Their Benefits to Vulnerable Seniors
The elderly are highly vulnerable to financial abuse and scams. Sadly, the elderly are often taken advantage of by strangers — and sometimes even their own family members. That’s why it’s important that planning is in place to help seniors protect themselves and their assets. As we age, it can become increasingly difficult to manage our assets. Most of us will, at some point, need assistance with these details to help ensure that our financial and other assets aren’t depleted. If you or an aging loved one are looking for ways to safeguard assets, a Trust is often the best ... Read More
To A/B, or Not To A/B, That is the Question
Most revocable living trusts for married couples, established prior to 2018, require that the trust be divided into two or more “sub-trusts” upon the death of the first spouse. This is for federal estate tax or “death tax” planning purposes. These trusts are known as A/B or A/B/C Trusts. They were designed primarily to reduce or eliminate estate taxes by preserving the federal estate tax exemption (the value of assets which can pass free of tax) of the first to die. An A/B Trust works like this: Upon the death of the first spouse the B Trust is funded ... Read More
Blended Family Estate Planning
In many cases, couples bring children into a marriage from a prior marriage or union and then have children together. This is often referred to as a blended family. Blended families highlight the need for careful estate planning to make sure the needs of each spouse are met, as well as the needs of each parents' children. If one spouse is significantly younger, this sometimes means that the older spouse’s children are close in age to the younger spouse. There can also be sibling rivalry between children of a parent and step-children. These relationships can cause more than friction between ... Read More
Factors to Consider When Naming a Trustee for Your Estate
Naming a trustee is a crucial step in estate planning. This individual or entity will be responsible for managing your assets and distributing them according to your wishes after you pass away. In the state of California, there are specific considerations and guidelines to keep in mind when selecting a trustee. Following is essential information about naming a trustee for your estate in California. Understanding the Role of a Trustee A trustee is an individual or institution appointed to administer a trust on behalf of the grantor (the person who creates the trust) and the beneficiaries. The trustee has fiduciary ... Read More
Estate Planning: Joint Revocable Trusts
Trusts can form an essential part of estate planning. Not only do they provide privacy, but they also set parameters for how and when your assets will be used and distributed. Unfortunately, with so many different types of trusts, it can get confusing. If you’re a married couple desiring to integrate a trust into your estate plan, consider adding a joint revocable trust. A joint revocable trust is a single trust document that covers two married people who have either joint or individual property. This type of trust helps to simplify the administration of assets upon death or incapacity. How ... Read More
Benefits vs Disadvantages of a Living Trust
Similar to a will, a living trust is a legal document that lets you distribute your possessions to people and organizations after you pass away. Unlike a will, though, assets held in living trusts do not have to go through an expensive court process such as probate before being distributed to your beneficiaries — the people you’ve named to receive your assets. It’s common for individuals to create a living trust so they can pass on their assets without court intervention. A living trust is often the preferred estate plan for many families in the state of California. If you’re ... Read More
Understanding FDIC Coverage on Trust Accounts: A Crucial Aspect of Estate Planning
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IRA Inheritance Trusts
Wealth management experts encourage people to put money aside for retirement. This works, as it allows you to take advantage of tax-deferred growth if you make contributions to employer-sponsored retirement plans or IRAs. By the end of your career, sizable wealth can be generated within your qualified accounts. When it comes to leaving your retirement assets to your loved ones, you have two options: 1) either designate them as beneficiaries outright, or 2) designate a trust as a beneficiary. Option one provides the designated beneficiaries with immediate access upon death without any strings attached. Option two typically uses either a revocable ... Read More
One Size Doesn’t Fit All
When we’re out discussing estate planning with folks, one of the most commonly posed questions is: “How do I know if I need a Trust?” And it’s a great question . . . one that deserves a bit of deeper analysis. In California, the California Probate Code serves as the “bible” governing the inner workings of Trusts and other testamentary instruments, and it dictates that “assets not held in trust must pass through probate.” (You’ll need to consult some of the previous blog posts on our website to gain an appreciation as to why it is so critical to avoid ... Read More
