A living trust is a financial vehicle that can help protect the financial stability of your growing family if you are injured or die -- but a lot of people don't know where to start when it comes time to prepare one.
Here are some tips to help you get prepared before you meet with your attorney:
1. Choose a guardian for the children.
This is a difficult, but necessary, first step. You want to pick someone whose values are in line with your own and whose parenting style you believe would be similar. While nobody will raise your children exactly the same way that you would, it's important to pick someone who will nurture your children and support them through the difficult times that would likely follow your death. Make sure that you discuss this decision with your choice and that he or she is willing to accept the responsibility.
2. Decide on someone to hold your financial power of attorney.
There's always the possibility that you would be incapacitated, not killed, due to an illness or an accident. If that happens, you need someone to take over your financial affairs until you can recover. Most people name their spouse as the person they want for the job -- but you should always have a backup plan. That could be important if you and your spouse are involved in a joint accident.
3. Give someone your healthcare proxy.
A living will and a healthcare power of attorney are essential parts of your estate plans and should be part of any discussion about a living trust. If you're unable to make your own medical decisions, you need someone you can trust to take over. Again, your spouse is fine, but choose a backup -- just in case.
4. Name your successor trustee.
You and your spouse will be in charge of the trust as long as you are alive, but you need to name a successor trustee to take over in the event of your death. This smooth transition is one way that a living trust is designed to keep your family finances steady. You can name the same person you've chosen as guardian, but that's not essential -- and maybe not what you want. Pick a trustee that you believe will make sound financial decisions and work well with your chosen guardian.
5. Gather all your financial documents.
You need to fund your trust. To do that, your attorney will need information about your home, any other property you own, your insurance policies, your pension plans, your stocks, your business, and any other financial holdings. Gather up all the contact information, policies, beneficiary designation forms, and other paperwork you have and take them with you to the attorney's office. Contact a business like Rudolph and Chonoles LLP for more information.
Share11 September 2018
Early in my career, I experienced disappointments. After happily working five years for a company, my job responsibilities suddenly increased. Unfortunately, my salary remained the same. Longing to take control of my situation, I quit my job in order to launch a home-based business. After years of working for someone else, are you ready to become an entrepreneur? Before taking this exciting step, consider consulting with a business attorney. This individual can inform you about the types of permits and licenses you might need to obtain. A business lawyer can also help you draft contracts. On this blog, I hope you will discover the benefits of working with a business attorney before becoming an entrepreneur.
