Estate Planning Strategies
There are several estate planning strategies that you can consider:
Revocable Trusts – these trusts are a good tool to protect from risks of aging, identity theft, financial abuse and other financial reasons. If you are considering a revocable trust discuss with your estate planning attorney a trust protector in the trust to oversee the trustee which allows the individual to monitor provisions in the trust.
Irrevocable Trusts – New rules in 20 states allow decanting of trusts, merging an old trust into a new trust; no longer assume that some unfavorable terms cannot be changed.
Insurance Trusts – include Crummey power, the right to withdraw gifts to the trust for a period of time. This enables the gift to qualify for the $14,000 annual gift exclusion.
Charitable Giving – consider gifting assets to children who are in a higher tax bracket and let the child make the charitable gift instead.
Long Term Care Insurance – As you age long-term care costs are ever more important. You should review LTC insurance before making any gifts. Key important provision is planning for cognitive decline in the policy. It is essential to have a durable power of attorney authorizing the agent to handle financial matters if you cannot do so for yourself.
As time goes by, things change so make sure your estate planning has changed too. Review your plan every three or so years.
Daniel Iuculano, AAMS CMFC
Accredited Asset Management Specialist
Chartered Mutual Fund Counselor