Estate planning is an important process that many people may not be familiar with, or may be intimidated to begin preparing for. Estate planning is the process of documentation that you arrange to protect your property and assets in the event of your passing. These documents include certain trusts, wills, and deeds. The estate planning process is different for everyone, so it’s essential to know more about it and how you can start drawing up the special documents you might need.
Types of Trusts
There are a few types of trusts that you should know about while beginning your estate planning. One trust to know about is a Family Needs Trust, or FNT. You can place any excess assets into this type of permanent trust, which means that by doing this, you and your family are able to protect the money you are saving to take care of yourselves as you age. Another trust is an Intentionally Defective Grantor Trust, or an IDGT. This is a type of grantor trust that has a deliberate flaw that ensures your family member continues to pay income taxes. You can also set up a Special Needs Trust if your family member has a disability.
There are three different types of wills: pour-overs, stand-alones, and living wills. If you would like more information on these two types of wills, and which one might work best for you, read this blog post.
What are Deeds?
Deeds are documents that transfer ownership of property. These documents contain the names and information of new and old owners of property, and a legal description of the property itself. The deed would be signed by the person receiving the transferred property.
If you’re interested in getting started with your estate planning, and you want more detailed information on the documents and processes that will be required, contact the attorneys at Beyer, Pongratz & Rosen.