. . . “Now that the government has increased the estate-tax exemption to $5 million, do we still need a Living Trust?” The answer depends on what you want to happen to your estate (house, savings, life insurance money, retirement accounts, investments) if you die unexpectedly.
A mainstream Living Trust can still provide:
- Protection for some (or possibly all) assets in the event of a lawsuit
- Safeguards so that children/grandchildren do not inherit too much, too soon
- Incentives so that a child/grandchild will more fully appreciate the inheritance you leave buying “earning” the right to receive it
- Protection so that the inheritance doesn’t get tangled up in the child’s/grandchild’s Divorce, Lawsuit, or Creditor Claims
- Provisions to keep the inheritance of a “special needs” child/grandchild from making him/her ineligible for government benefits such as Social Security disability benefits and Medicaid
- Protection so that a child/grandchild will not lose his (her) inheritance if he (she) develops gambling or substance abuse addictions
- Tax planning should the government suddenly take away the $5 million estate-tax exemption it gave you in December
In short, there are a lot of reasons for families and individuals to utilize Living Trusts — as well as other types of estate-planning tools. With the busy holidays behind us, this could be a good time for you to consult with your estate-planning attorney to make sure that all of the things you want are covered in your current estate-planning documents.
Randall Holmgren
Randall “Randy” Holmgren’s practice focuses exclusively on estate planning, asset-protection planning, and business succession planning.
Randy has presented hundreds of lectures, seminars and workshops on estate planning, asset protection and business succession.He is a frequent presenter at colleges, universities, conventions, financial institutions and church and social groups.
Randy has presented hundreds of lectures, seminars and workshops on estate planning, asset protection and business succession.He is a frequent presenter at colleges, universities, conventions, financial institutions and church and social groups.
Latest posts by Randall Holmgren (see all)
- 6 Important Estate Planning Considerations – Part 4: Beneficiary Designations - June 1, 2018
- Retirement: It’s not Just About the Money - May 1, 2018
- Estate-Tax “Portability” — Oasis or Mirage for Larger Estates? - March 19, 2015
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