There are many different situations in which you may want to put together a trust that helps to protect your beneficiaries from hurting themselves in the future. Some examples include children who are struggling with addiction, those who are spendthrifts and individuals suffering from mental illness.

As a parent, there’s no doubt that you have concerns about their care and the most appropriate way to leave behind assets to assist with that care. However, estate planning might differ in this situation when compared with other types of families. Using a trust with special purpose language is frequently the answer.

Traditional estate planning goals can be accomplished with a trust such as minimizing taxes, ensuring that the intended beneficiaries are named and avoiding probate However, it can also be tailored for more unique family situations involving addiction or illness.
Parents can now add language that allows the appointed trustee to deal with the bad as well as the good, thereby incentivizing a child to meet certain requirements in order to receive a distribution from the trust. For example, you might outline that staying on a certain medication that helps the child control their addiction is necessary. proper planning should also include conversations about a HIPAA release and healthcare power of attorney after the child reaches age 18. Consulting with a knowledgeable New Jersey estate planning lawyer is strongly recommended.  

It can be overwhelming and frustrating to deal with the grief process while also figuring out how to handle your parents’ estate. Thankfully there are numerous steps you can take in advance to help to maximize the money passed on to beneficiaries and minimize taxes. There are multiple different tax saving strategies that can help your older parents save money and limit the amount of taxes that are owed by their estate after they pass away.

Some of these are steps that you can take while others are steps that your parents should take with the help of an experienced financial professional. These include:

• Selling stocks that have losses.
• Managing IRA strategically to reduce taxes.
• Keep stocks that have regular gains.
• File for a disabled or elderly tax credit, if eligible to do so.
• Claim parents as your own dependents in the event that they qualify.
• Put money into trusts, which can help with significant assets.
• Gift money to beneficiaries while your parents are still alive.

Ready to talk options? Set up a meeting with our NJ estate planning office today.                                                                                                                  

If you are thinking ahead about your estate planning goals, it’s tempting to address your needs by filling out a form you found online.

A template will or other documents are not always legally binding and they may be a very poor fit for anyone who has special concerns or needs. In the event that your will is unclear or not in line with relevant state laws, your estate could become more complicated than you intended.

Here are some common situations that warrant the insight of an experienced lawyer:

• Caring for a child with special needs
• Wanting to give particular pieces of property to one beneficiary or another
• Wanting to exclude someone from your will or other estate matters
• Wanting to ensure that property is passed on with some element of control (such as through a trust)
• Getting remarried or divorced and needing to update your plan or adjust to include past beneficiaries
• Advanced planning strategies to assist with your estate or tax needs

As you can see, there are numerous situations that make it a good choice to set up a meeting with an experienced estate planning lawyer. Talking to a lawyer will help you identify the right strategies for you and your family now and well into the future.