Estate planning is a tricky concept, but one you have to tackle. The living trust is a key component of most estate planning efforts.
The idea of a Trust began back in the 16th century in England as a way to circumvent the control of the King over property after death. The King had the right to distribute a person’s property after his death and people worried that their estates would not be distributed to their heirs by the King. They would deed their property to another entity, usually the Church, in return for the promise that the Church would distribute it to their heirs according to their wishes. In other words, they were trusting the Church to look out after their interests after their death.
In the past in the United States, a trust was thought of as being something of use only to the very rich. This perception has changed in the past years and today an instrument known as the Living Trust has become popular. The Living Trust is simply a name given to a trust that is established while you are still living. It is a legal instrument that names three different parties. The person who establishes and funds the trust is called the Grantor, or sometimes the Trustor. The person who controls the assets of the trust is called the Trustee. The third party is the beneficiary, or beneficiaries. They are the people designated to receive the benefits of the trust according to the specific wishes of the Grantor.
To understand the value of a trust in estate planning, you must understand that the title and ownership of the assets is legally passed to the Living Trust. The Trustee has an obligation to administer the Trust according to the instructions of the Grantor, but from a legal point of view, it is the Trust that is the owner. The Grantor will eventually die, but the Trust does not die. This is the purpose of the Trust. The legal issues such as estate taxes and probate courts that can hinder and delay the transfer of an inheritance do not come into play.
Privacy is also insured. The affairs of the Trust do not come under public scrutiny as do the affairs of a probate court. The Trust can also make sure that things are done exactly as the Grantor wanted them done. The family disputes and contested wills are avoided because the Trust is the owner of the assets and is bound to distribute them according to the terms of the trust. It is not a matter for argument in a court.
Most financial experts suggest that anyone with an Estate of at least $100,000 should be giving some serious consideration to the establishment of a Living Trust. It remains one of the most effective tools in the Estate planning arsenal for giving a person the peace of mind that comes from knowing that their estate will be handling as they wanted it to be handled after their death.
Get more estate planning info at UFCAmerica.com.
Article Source: http://EzineArticles.com/?expert=Barry_Waxler
Thursday, July 12, 2007
How To Create A Creditor Debt Management Program
A creditor debt management program provides relief to a concern for most professionals, small business owners and others potentially susceptible to personal liability during their lifetime or after death. A creditor debt management program can’t guarantee that a particular savings or income producing account will or will not be protected from creditors. as every situation depends on a number of circumstances, a creditor debt management program will protect you in many instances but not in others.
It is important and a responsibility to do all you can to try and mitigate risk as best you can using a creditor debt management program.
A creditor debt management program covers some of the laws and legal cases that either support or deny creditor debt management programs for both insurance and non-insurance savings and income producing investment vehicles.
Bankruptcy and Insolvency Act re: creditor debt management programs
The foundation of a creditor debt management program proceedings is the Federal Bankruptcy and Insolvency Act. The Act states three main conditions under which a creditor debt management program doesn’t apply.
1. If the bankrupt was solvent at the time of settlement and went into bankruptcy within one year thereafter, the creditor debt management program doesn't apply.
2. If the bankrupt was insolvent at the time of settlement and went into bankruptcy within five years thereafter the creditor debt management program doesn't apply.
3. If the bankrupt was solvent at the time of settlement, went into bankruptcy within five years thereafter and the bankrupt’s interest in the settled property did not pass at the time of settlement, the creditor debt management program doesn't apply.
However, subsection 67(1)(b) of the Act excludes assets of the bankrupt that are exempt under provincial law. So, even if one of the conditions above applies to the situation, assets may still be available for the creditor debt management program. This brings us to the provincial insurance acts.
Common Law Province Insurance Acts and a creditor debt management program
The insurance acts in Canada’s common law provinces are generally similar. The sections of the various acts relating to a creditor debt management program, in general, that insurance money and contracts are exempt from seizure as long as a spouse, child, grandchild or parent of the annuitant is named beneficiary. The protection of a creditor debt management program also extends to the instances where an irrevocable beneficiary is named.
The beneficiary in a creditor debt management program can’t be one of the policy owners where there are joint owners on a policy. The beneficiary will not be deemed an exempt beneficiary if the beneficiary is one of the owners.
A creditor debt management program may not apply if the transfer of assets to an insurance policy is deemed to be made with the intent to delay, hinder or defeat creditors. The transfer of assets may be considered to be a fraudulent conveyance in such a case. The concept of fraudulent conveyance is getting more and more attention these days as creditors are finding it a more successful approach to take in legal proceedings they undertake, another reason to consider a creditor debt management program.
John Stratos is a contributor to Equity Cash North Americas premiere program for protecting your hard-earned equity and creating Cash Flow with ZERO risk to your equity!
Article Source: http://EzineArticles.com/?expert=John_Stratos
It is important and a responsibility to do all you can to try and mitigate risk as best you can using a creditor debt management program.
A creditor debt management program covers some of the laws and legal cases that either support or deny creditor debt management programs for both insurance and non-insurance savings and income producing investment vehicles.
Bankruptcy and Insolvency Act re: creditor debt management programs
The foundation of a creditor debt management program proceedings is the Federal Bankruptcy and Insolvency Act. The Act states three main conditions under which a creditor debt management program doesn’t apply.
1. If the bankrupt was solvent at the time of settlement and went into bankruptcy within one year thereafter, the creditor debt management program doesn't apply.
2. If the bankrupt was insolvent at the time of settlement and went into bankruptcy within five years thereafter the creditor debt management program doesn't apply.
3. If the bankrupt was solvent at the time of settlement, went into bankruptcy within five years thereafter and the bankrupt’s interest in the settled property did not pass at the time of settlement, the creditor debt management program doesn't apply.
However, subsection 67(1)(b) of the Act excludes assets of the bankrupt that are exempt under provincial law. So, even if one of the conditions above applies to the situation, assets may still be available for the creditor debt management program. This brings us to the provincial insurance acts.
Common Law Province Insurance Acts and a creditor debt management program
The insurance acts in Canada’s common law provinces are generally similar. The sections of the various acts relating to a creditor debt management program, in general, that insurance money and contracts are exempt from seizure as long as a spouse, child, grandchild or parent of the annuitant is named beneficiary. The protection of a creditor debt management program also extends to the instances where an irrevocable beneficiary is named.
The beneficiary in a creditor debt management program can’t be one of the policy owners where there are joint owners on a policy. The beneficiary will not be deemed an exempt beneficiary if the beneficiary is one of the owners.
A creditor debt management program may not apply if the transfer of assets to an insurance policy is deemed to be made with the intent to delay, hinder or defeat creditors. The transfer of assets may be considered to be a fraudulent conveyance in such a case. The concept of fraudulent conveyance is getting more and more attention these days as creditors are finding it a more successful approach to take in legal proceedings they undertake, another reason to consider a creditor debt management program.
John Stratos is a contributor to Equity Cash North Americas premiere program for protecting your hard-earned equity and creating Cash Flow with ZERO risk to your equity!
Article Source: http://EzineArticles.com/?expert=John_Stratos
Subscribe to:
Posts (Atom)