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I have a will. Do I need anything else? In addition to
a will, most experts recommend that you have a durable power of attorney, which
allows another person to act on your behalf should you become incapacitated. Also,
a living will is helpful to your heirs in that it directs at which point you do
not want your life artificially supported. Can bequests be handled
in a living trust? Certainly. You may wish to consider a living
trust as an estate planning tool. More information
is available. Living trusts may be either revocable or irrevocable and there are
advantages and disadvantages to consider in both. What happens to
my personal possessions? Personal possessions are best distributed
through a tangible personal property memo in which you list the personal items
you wish to give to specific people. Your will must mention the existence of this
memo and you should keep a copy of it with your will. If a trust agreement
is established as irrevocable, it means that it can't be revoked (broken) except
under unusual circumstances. Why would anyone want an irrevocable trust? There
are always specific reasons for making an irrevocable trust agreement. Perhaps
it involves a family business where some of the family members are getting on
in years and the family wants to make certain that management continues to run
smoothly even if hindrances, such as senility, enter the picture. Many
times the reasons for an irrevocable trust involve estate and/or income tax avoidance.
In order to be successful in such avoidance, the trustor must not have any direct
or indirect power or control over the trust property or income. The regulations
on this subject, set out in the Internal Revenue Code, must be carefully followed.
What is the difference between a charitable remainder unitrust and
a charitable remainder annuity trust? The major difference is
in the valuation of the assets of the trust, which establishes part of the calculation
for the determination of the amount of income received by the income beneficiary(-ies).
The annuity assets are valued at the time the assets are placed in the trust and
are never revalued. Annual payments remain the same, whether the assets appreciate
(increase in value) or decline (lose value). The assets in the unitrust
are revalued annually. If the trust assets appreciate, the payment to the income
beneficiary(-ies) will increase. If the trust assets depreciate, the payment will
decrease. >>back to top What happens
to my assets in a trust for a charity if the charity goes out of business before
the expiration of the trust? Your trustee is authorized to name
a substitute, if that is the sole charity. Should I name a charity
as trustee of my charitable remainder trust? This is often done
if the organization is qualified to so act under local law. The organization's
representatives can satisfy you in that regard. Often they will serve without
fee, which is an additional incentive. How often should I update my
will or trust? These documents should be updated any time your financial
or your family circumstances change. As laws vary from state to state, if you
move you should have an attorney licensed in and familiar with the new state's
laws review your will or trust agreement. It is always wise, even if there are
not any significant changes in your circumstances, to periodically review these
important documents. A good rule of thumb is to review your will every three years. Can
I use my insurance to benefit charitable organizations? Yes.
This is an area overlooked by many. You can name one or more charities as alternate
or as primary beneficiary. Furthermore, if you no longer need the policy proceeds
in your estate for use now, you can transfer ownership of the policy to the charity
or charities. If the policy has cash loan value, the charity can draw this out
and use it. In this case, you not only receive a charitable gift deduction, but
any additional premiums you pay are tax deductible for you now. And, on your death,
the charity receives the balance of the policy proceeds and none of it is included
in your estate for tax purposes. >>back to top | 
