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Estate Planning Archives | Page 3 of 3 | Wealthspire Advisors

dynasty trusts

A Primer on Dynasty Trusts

By Guides & Whitepapers
Why is it called a “Dynasty Trust”? Some are surprised to learn that most trusts are temporary. Unlike a corporation, partnership, or other artificial legal entity, most trusts cannot be perpetual. A rule of law called the “Rule Against Perpetuities” terminates most trusts automatically, and cuts them off at a few generations. As a result, even the most careful trust planning will eventually be unwound, because these temporary trusts will terminate and the property will be distributed outright into the hands of the trust beneficiaries. This limitation can be avoided by using a Dynasty Trust, because it is a perpetual…
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Often Overlooked Estate Planning Details

By Blog
Estate Planning is Still Important The recently passed Tax Cuts and Jobs Act raised the estate tax exemption to $11.2 million ($22.4 million for couples). While fewer families will now be subject to estate tax, estate planning, the process of preparing instructions for how your personal assets should be administered and distributed after your death, remains a necessary task. More than just the writing of a legal will, estate planning can provide legal clarity to final wishes, name beneficiaries of assets, and outline terms of care in the event of incapacitation. As the process of creating an estate plan can…
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decanting

Decanting – Not Just for that Bottle of Cabernet

By Blog
Trust “decanting” refers to the technique of transferring assets from an existing irrevocable trust to a new irrevocable trust, typically with more “favorable” terms. The power to transfer assets from one trust to another is commonly derived from the trustee’s broad discretionary authority to make distributions to, or for the benefit of, the beneficiaries of the original trust. Decanting has the effect of amending what was typically intended to be an unamendable irrevocable trust, by allowing the trustee to distribute trust property to a second trust with terms that may differ substantially from those of the original instrument. The concept…
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roth ira conversion

Important Changes to New Jersey Estate and Trust Law

By Blog
Repeal of New Jersey Estate Tax.  On October 14th, Governor Christie signed into law a bill eliminating New Jersey’s state estate tax.  Below are the highlights: Beginning January 1, 2017, the New Jersey estate tax exemption will increase from $675,000 to $2,000,000. This means that the increased exemption will be available for individuals dying in 2017. Beginning January 1, 2018, the New Jersey estate tax will be eliminated in full. The NJ inheritance tax still remains. The NJ inheritance tax is a death tax imposed on transfers to beneficiaries who are not charities or spouses, children, grandchildren, or parents of…
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disability planning

Basics of Disability Planning

By Blog
Currently over 37 million Americans are classified as disabled, statistically the average American worker has a 1 in 4 chance of becoming disabled during their career. Nearly everyone can benefit from the creation of a basic disability plan. A basic disability plan should allow your chosen representative to make financial and medical decisions on your behalf if you are incapable of doing so. It is a position of extreme power and you should consider many factors when choosing your representative. The basic building blocks of disability planning typically involve the signing of a power of attorney, health care proxy and…
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revocable trust

What is a Revocable Trust?

By Blog
A Revocable Trust – sometimes referred to as a “Living Trust” – is a lifetime trust that can be amended or revoked at any time during the creator’s life.  The creator (or “grantor”) of the trust typically also serves as trustee and is also a trust beneficiary during his or her life.   At the grantor’s death, the terms of the Revocable Trust direct how the grantor’s assets are to be distributed, essentially acting as a substitute for the Will. Nonetheless, the grantor still executes a Will.  This is because the grantor may have failed to transfer title of certain assets…
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planning

Basics of Estate Planning

By Blog
Lifetime and testamentary planning Contrary to popular belief, estate planning typically involves more than just signing a Will. It generally involves two sets of considerations: lifetime planning and testamentary planning. Lifetime planning may involve choosing decision-makers to make health or financial decisions on your behalf should you become incapacitated. For higher net worth individuals, lifetime planning may also involve establishing tax-efficient gifting strategies during life. A testamentary plan, on the other hand, will designate the individuals or charities who are to inherit your assets at death, and in what capacity (e.g., outright vs. in trust). In addition, a testamentary plan…
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POAs

New Connecticut Uniform Power of Attorney Act to Become Effective October 1, 2016

By Blog
Changes to Connecticut’s existing power of attorney law will take effect on October 1, 2016.  Under the new law, a power of attorney (“POA”) that was signed before October 1, 2016 in compliance with the law in force at that time will remain valid.  A POA signed on or after October 1, 2016 must comply with the provisions of the new law. The new law differs from existing law in a few key ways.  First, the new law requires that a third party, such as a financial institution, either honor a properly executed POA or request additional information/documentation within seven…
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