LEGACY PLANNING OPTIONS
What type of legacy plan is right for you?
For many, the most familiar estate planning strategy is, of course, a WILL―a document created by you to inform the probate court of your wishes concerning your family, wealth, and possessions, after death. A will, while important, is the most basic estate planning tool, and only takes effect upon your death. But what happens to your family, wealth, and possessions if you’re only incapacitated? And is there something you can do to better protect them right now, while you’re still alive and well? What about passing on intangibles like your family history and values?
In most cases, a will simply does not serve as a wholly sufficient estate plan, and it certainly does not create a legacy. Having a will in conjunction with other strategies such as TRUSTS and DELIBERATE FAMILY PLANNING ultimately delivers a much more in-depth expression of your wishes and greater protection for your family and your tangible and intangible assets―now and in the future―no matter what the future brings.
A TRUST-BASED plan achieves specific objectives like asset protection, avoiding probate, maintaining family privacy, smooth and immediate transfer of assets, gifting specific heirlooms to specific people, naming guardians for your children and animals, and ensuring the right people will step into the right roles in the event of your incapacity or death. A TRUST-BASED LEGACY PLAN designed with CLR Law, PLLC also offers you the opportunity for DELIBERATE FAMILY PLANNING (options outlined below).
A comprehensive DEPENDENT STABILITY PLAN™ (DSP) is also recommended for all families with minor children or adult dependents in their care. The DSP ensures your dependents remain only in the care of trusted individuals (as opposed to the authorities) no matter what happens to you. It also provides your chosen caregivers with important information and detailed instructions for how you want your children raised or your adult dependent supported in the event you are no longer able to.
WILLS VS. TRUSTS
- Requires probate
- Less time to draft now
- More time to probate later (6 to 18+ months)
- Costs less to draft now ($1500-$2500)
- Costs more to probate later
- Does not include incapacity provisions
- Effective only upon death
- Assets can be frozen
- Assets eventually transferred to heirs
- No asset protection
- Names guardians for your children
- Not private/Matter of public record
- Court supervision
- Less control over your estate
- No deliberate family planning
- Avoids/Minimizes probate
- More time to draft now
- Less time to administer later
- Costs more to draft now ($3000-$5000+)
- Costs less to administer later
- Includes incapacity provisions
- Effective immediately
- Assets are transferred automatically
- Assets are transferred quickly
- Opportunity for asset protection
- Comprehensive Dependent Stability Plan™
- No court supervision
- Greater control over your estate
- Comprehensive deliberate family planning
WHAT ARE YOUR PLANNING GOALS?
I WANT TO TAKE CARE OF MY SPOUSE IF I BECOME INCAPACITATED OR DIE. We can do that with a Marital Trust, Family Credit Shelter Trust, Marital QTIP trust, and/or a Spousal Lifetime Access Trust.
I WANT TO TAKE CARE OF MY MINOR CHILDREN IF I BECOME INCAPACITATED OR DIE. We can do that with a Family Trust or a Family Credit Shelter Trust, and a Minor Child Dependent Stability Plan™.
I WANT TO TAKE CARE OF MY ADULT CHILD WHO MIGHT NEED A LITTLE MOTIVATION/SUPERVISION IF I BECOME INCAPACITATED OR DIE. We can do that with an Incentive Trust, Spendthrift Trust, and/or an Adult Child Dependent Stability Plan™.
I’M PART OF A BLENDED FAMILY AND I WANT TO MAKE SURE MY CHILDREN ARE TAKEN CARE OF IF I BECOME INCAPACITATED OR DIE, ESPECIALLY IF MY SPOUSE REMARRIES. We can do that with a Joint Pour-Over Trust-Based Plan, a Marital QTIP Trust, and a Family Credit Shelter Trust.
I WANT TO TAKE CARE OF MY ANIMALS IF I BECOME INCAPACITATED OR DIE. We can do that with a Pet Trust and/or a Horse Trust.
I WANT TO TAKE CARE OF MY LOVED ONE WHO HAS SPECIAL NEEDS. We can do that with a Special Needs Trust and a Dependent Stability Plan™.
I WANT TO GIVE A GIFT TO OR SUPPORT MY GRANDCHILDREN AFTER I DIE. We can do that with a Generation-Skipping Trust.
I WANT TO CONTROL THE DISTRIBUTION OF MY LEFTOVER RETIREMENT FUNDS AFTER I DIE. We can do that with a Standalone Retirement Trust.
I WANT TO PROTECT MY LIFE INSURANCE, REMOVE MY LIFE INSURANCE FROM MY TAXABLE ESTATE, AND AVOID GIFT TAXES FOR MY BENEFICIARIES. We can do that with an Irrevocable Life Insurance Trust.
I WANT TO PROTECT MY HOME BY PUTTING IT IN A TRUST FOR MY FAMILY WHILE ALLOWING ME TO LIVE IN IT AND REMOVING IT FROM MY TAXABLE ESTATE. We can do that with a Qualified Personal Residence Trust.
I WANT TO GIVE MY ASSETS TO MY SPOUSE SO THAT SHE CAN TAKE CARE OF ME AND MY FAMILY WHILE REMOVING THE ASSETS FROM MY TAXABLE ESTATE. We can do that with a Spousal Lifetime Access Trust.
I WANT TO PROTECT MY ASSETS FROM LAWSUITS, CREDITORS, DIVORCE, AND MY OWN BAD LUCK. We can do that with a Domestic Asset Protection Trust.
I WANT TO GIVE MY PROPERTY TO MY FAMILY AND STILL BE CHARITABLE. We can do that with a Charitable Remainder Trust, Charitable Lead Trust, Private Family Foundation, or LLC.
I WANT A SUCCESSION PLAN FOR MY BUSINESS. We can do that with a Buy/Sell Agreement that forms a logistical and financial Succession Plan that effectuates your decisions about who will take over your business upon your retirement, death, or disability.
YOUR PLANNING OPTIONS:
CLICK THE TERMS TO LEARN MORE ABOUT THEM OR SCROLL DOWN TO DECIDE IF AN ADDITIONAL OPTION IS RIGHT FOR YOU.
- POUR-OVER WILL
- LIVING WILL & ADVANCE DIRECTIVE
- FIVE WISHES®
- HEALTHCARE POWERS OF ATTORNEY
- FINANCIAL POWERS OF ATTORNEY
- HIPAA RELEASES
DELIBERATE FAMILY PLANNING
- LEGACY INTERVIEW
- LEGACY PHOTOS & DOCUMENTS
- FAMILY MEETING
DEPENDENT STABILITY PLAN™
- SHORT-TERM GUARDIANSHIP
- LONG-TERM GUARDIANSHIP
- CONFIDENTIAL GUARDIAN EXCLUSIONS
- CARE INSTRUCTIONS
- NOTIFICATION LETTERS
- EMERGENCY CARDS
- POWERS OF ATTORNEY
- HIPAA RELEASES
- MARITAL DISCLAIMER TRUST
- MARITAL QTIP TRUST
- QUALIFIED DOMESTIC TRUST
- FAMILY TRUST
- FAMILY CREDIT SHELTER TRUST
- GENERATION SKIPPING TRUST
- INCENTIVE TRUST
- SPENDTHRIFT TRUST
- CHARITABLE REMAINDER TRUST
- CHARITABLE LEAD TRUST
- STAND ALONE RETIREMENT TRUST
- IRREVOCABLE LIFE INSURANCE TRUST
- QUALIFIED PERSONAL RESIDENCE TRUST
- SPOUSAL LIFETIME ACCESS TRUST
- DOMESTIC ASSET PROTECTION TRUST
- HORSE TRUST
- PET TRUST
DELIBERATE FAMILY PLANNING
- LEGACY BOX®
- FAMILY LIMITED PARTNERSHIP
- FAMILY LIMITED LIABILITY COMPANY
- PRENUPTIAL AGREEMENT
- MARITAL AGREEMENT
- TRANSFER ON DEATH DEEDS
- DEEDS OF GIFT
- TRUST FUNDING
- LEGACY SUSTAINABILITY PLAN™
WHAT ADDITIONAL OPTIONS ARE RIGHT FOR YOU?
A CHILD DEPENDENT STABILITY PLAN™ IS NECESSARY IF YOU ARE THE PARENT OF A MINOR CHILD AND…
- You want your child(ren) to be raised by the people you choose.
- You don’t want your child(ren) to be raised by certain people
- Because your values differ.
- Because they’re irresponsible.
- Because they can’t afford to raise your children.
- You want to make sure your child(ren) are raised the way you would have raised them
- In accordance with a certain religion.
- Connected to their heritage by learning a familial language or participating in family customs.
- Experiencing certain experiences like traveling or playing sports.
- Understanding and valuing money and finances.
- You want your child(ren) to share your values even if you don’t get a chance to pass them on.
AN ADULT DEPENDENT STABILITY PLAN™ IS HELPFUL IF YOU ARE…
- The primary caretaker of a handicapped adult.
- The primary caretaker of an adult addict.
- The primary caretaker of an elderly parent.
AN ADULT-CHILD/DEPENDENT HIPAA RELEASE IS NECESSARY IF…
You have a child 18 years old or older and, in the event of a medical emergency, you want to remain informed about your child’s medical care even if your child is unconscious and cannot provide verbal or written consent to sharing HIPAA-protected information.
You have an adult who depends on you, and in the event of a medical emergency, you want to remain informed about their medical care even if they are unconscious and cannot provide verbal or written consent to sharing HIPAA-protected information.
AN ADULT-CHILD/DEPENDENT POWER OF ATTORNEY IS NECESSARY IF…
You have a child 18 years old or older and, in the event of a medical emergency, you want to be able to make decisions about your child’s medical care and other matters if your child is unconscious and unable to make decisions for themselves.
You have an adult who depends on you and, in the event of a medical emergency, you want to be able to make decisions about their medical care and other matters if they are unconscious and unable to make decisions for themselves.
A SPECIAL TRUST IS A GREAT IDEA IF…
MARITAL QTIP TRUST – You are married and you want to provide for your spouse during their life and then for someone else after your spouse passes away.
MARITAL QDOT TRUST – You are married to someone who is not a US citizen.
FAMILY TRUST – You have a family that you want to provide for through controlled distributions.
FAMILY CREDIT SHELTER TRUST – You want to provide for your family while protecting your property from taxation and creditors AND/OR you are half of a blended family and you’d like to ensure your children are provided for before providing for the children of your spouse.
INCENTIVE TRUST – You have a beneficiary you’d like to provide for, but you want to ensure they become a productive member of society. You can require your beneficiary to meet certain criteria, like graduating college, getting married, or refraining from drug use before receiving distributions from the trust. It is an “only if…” trust.
SPENDTHRIFT TRUST – You have a beneficiary you’d like to provide for, but you’re worried because they are not good at managing their money, are struggling with addiction, or have some other reason you’d like to protect them from themselves. A Spendthrift Trust can provide options for limiting their access to and control of assets left to them.
SPECIAL NEEDS TRUST – You or one of your beneficiaries have special needs and you’d like to set money aside to help with extended care needs.
CHARITABLE REMAINDER TRUST – You want to provide for your family and then contribute to a charity with what remains while at the same time protecting your property from taxation and creditors.
CHARITABLE LEAD TRUST – You want to contribute to a charity and then provide for your family with what remains while at the same time protecting your property from taxation and creditors.
STAND ALONE RETIREMENT TRUST – You expect to have retirement funds remaining after your death and you’d like to pass those funds on to a beneficiary (the trust will be funded after you pass with whatever is left of your retirement assets).
IRREVOCABLE LIFE INSURANCE TRUST – You want to protect your life insurance and other property from taxation and creditors AND/OR you have a taxable estate and you’d like to minimize your tax burden.
QUALIFIED PERSONAL RESIDENCE TRUST – You want to live in your home for a set period of years before gifting it to a beneficiary (during your lifetime) while also reducing the amount of gift tax incurred at the time of transfer.
SPOUSAL LIFETIME ACCESS TRUST– You and your spouse have a large estate and a trusting relationship and you’d like to remove funds from your taxable estate while keeping them available for your spouse to use throughout their lifetime.
HORSE TRUST – You want to be a responsible horse owner who ensures your horse is taken care of if you become incapacitated and after you die.
PET TRUST – You want to be a responsible pet owner who ensures your pet is taken care of if you become incapacitated and after you die.
A LEGACY BOX® IS A GREAT IDEA IF…
You have a lot of family photos (print and digital), videos (VHS and digital), audio (tapes and digital), and other documents (paper and digital) that you would like consolidated and digitized for safekeeping to pass on to your loved ones.
A FAMILY CHARITABLE FOUNDATION IS A GREAT IDEA IF…
You want to firmly establish a philanthropic legacy where control over the foundation and its assets can be passed to countless generations of family, perpetuating your values, continuing your charitable work, and carrying your name far beyond your lifetime.
A PRENUPTIAL OR MARITAL AGREEMENT IS A GREAT IDEA IF…
You want to protect your or their (or both) premarital assets and decide and agree upon how that property would be divided upon death or divorce. If you do this prior to marriage is a Prenuptial Agreement. If you do this during the marriage it is called a Post-Marital or simply Marital Agreement.
A TRANSFER ON DEATH DEED OR DEED OF GIFT IS A GREAT IDEA IF…
You want to immediately transfer ownership of your home upon your death (Transfer on Death Deed) or you want to put your home into your trust to better protect it from creditors and control its distribution or use after your death (Deed of Gift to your trust).
HAVING ME DO YOUR TRUST FUNDING MIGHT MAKE SENSE IF…
You don’t feel comfortable doing it yourself, you don’t have time, or you just don’t want to do it.
Trust funding involves retitling your assets into the name of your trust, which can include bank accounts, 529 plans, stocks and bonds, brokerage accounts, real estate, vehicles, business interests, etc. This can be intimidating and is tedious and time-consuming. It might provide you with reassurance or simply save you time to outsource that task to me at a cost of 0.5% of your total assets funded.
PARTICIPATING IN MY LEGACY SUSTAINABILITY PLAN™ IS RIGHT FOR YOU IF…
You don’t want to worry about whether your legacy plan is up-to-date and aligned with current law.
You don’t want to have to remember to have your plan reviewed and updated.
You want someone looking out for you and your family beyond the initial planning process.
You want your Successor Trustee to have a free initial consultation with me after your death.
My Legacy Sustainability Plan™ ensures that your estate planning documents are automatically reviewed annually and updated to conform with any changes in the law or your personal circumstances. This service costs an annual fee of $750/year. This fee covers an annual review, any updates due to changes in the law, and minor changes you may request. Costs will be added at an hourly rate if you require significant changes or amendments to be made.
If you don’t choose to take advantage of this service, I will have no further responsibility to you with respect to future or ongoing legal issues, nor will I have any duty to notify you of any changes in the law that could affect your estate plan. Because changes in the law frequently occur, I highly recommend you request a review of your estate planning documents at least every three years (costs for all work will be charged to you at an hourly rate).