Planning For Your Family Future

Protect Your Legacy Today!
Schedule

What Does a Will Do and Not Do?

May 4, 2022 •  Legacy Law LLC
Everyone needs a will. However, some people need more than that. To save on taxes and make for a smooth transition, they could really use a revocable trust, a family limited partnership or a gift trust.

Estate plans are like life—over time, it changes, people are added and subtracted and your wishes and goals change. Regardless of your income, amount of assets or family circumstances, everyone wants to minimize taxes and facilitate a smooth transfer of property at death. Consider a recent aptly named article titled “Does Your Estate Plan Call for More Than Just a Will?” from Kiplinger to learn about what an estate plan can do, versus what a will by itself may accomplish.

Revocable trusts bypass probate, letting the property held in trust pass directly to beneficiaries. There is no public record of the trust and its instructions, and your wishes will remain private. Only the trustee knows what is in the trust and how it is distributed. By comparison, when a will is processed through probate, it becomes part of the public record and anyone who asks to see it can, including creditors, estranged family members, scammers and salespeople.

Trusts are a valuable tool for incapacity planning, as well as for private and swift distribution of assets after death. Let’s say a person has become incapacitated and is no longer able to manage his own affairs. Assets in the trust are controlled by the trustee, or the successor trustee, if the person who created the trust was the primary trustee. Trusts are recognized by all states, but a power of attorney (POA) may not as easily cross state lines. Banks and other financial institutions may refuse to accept an out-of-state POA, but, for the most part, they will not push back against a trust.

Family limited partnerships lessen the burden of estate taxes for heirs. Right now, the federal estate tax exemption is $12.06 million. However, this is scheduled to be cut by half by 2025, unless Congress takes action earlier, which is possible. By setting up a FLP and allocating assets among partners, usually family members, you can prepare for the change to the estate tax exemption and lower the value of your estate at the same time.

Tax benefits are not the only reasons to create an FLP. A Family Limited Partnership can protect assets against seizure by creditors, including plaintiffs in lawsuits. If structured correctly, they can also protect against divorcing spouses, allowing succession plans to continue minus worries about the impact of a divorce.

Gifting trusts are used to avoid Generation Skipping Transfer Taxes, known as GST taxes. The GST tax is currently calculated at a flat rate of 40% on transfers above the lifetime GST tax exemption amount, currently $12.06 million per individual. It’s the highest estate and gift tax rate. The GST becomes effective when grandparents directly transfer money or property to grandchildren or younger descendants, without first leaving it to their children. Your estate planning attorney will know how to create a trust to avoid this tax so you can transfer assets to your children for their children, without incurring a GST or estate tax.

Reference: Kiplinger (April 4, 2022) “Does Your Estate Plan Call for More Than Just a Will?”

Speak With an Attorney

Schedule

Schedule Now

Client Success Stories

Bethany was amazing very helpful and kind. Made me feel very comfortable in a rough situation. Made sure I got what I wanted set up and took care of me and my family. Awesome job. I recommend her 100%.
Cari Covolo
December 22, 2021.
Bethany was professional, very knowledgeable, personable, and easy to work with. She made the daunting task of setting up a will easy and seamless.
Amanda Larson
October 21, 2021.
Bethany was great! She explained the details of probate and how it works in detail. Our purpose was to protect our children in the untimely event of both of us passing at the same time. The estate planning put our minds at ease. She encourages us to follow up with her periodically and make sure everything is still in order. This impressed us, she cares.
Dale Arey
October 13, 2021.
Bethany was great to work with! We highly recommend Legacy Law. Bethany was always well prepared and made things feel simple and easy to understand. She made a process that can feel overwhelming feel simple and manageable to do. She is very organized, professional and caring. She did an excellent job in preparing all the estate documents and helping us create a living trust!
Carey Larson
October 8, 2021.
Bethany was really helpful in getting our trust set in place; she answered all our questions thoroughly and we have peace of mind that our estate and affairs are in order. Highly recommend!
Paul Alvey
September 6, 2021.
I was pretty nervous/unsure about needing a will/ trust and decided to explore my options. I found an introductory video on-line from Legacy Law. From there I set up a meeting with Bethany and went in with a boatload of questions. My questions were answered patiently and with great expertise. I never felt pressured and came out feeling reassured and comfortable with my choices/decisions. This was all done professionally and in a very timely manner. To this day, if I have a question all I have to do is give Bethany or Brynn a call. It is without hesitation that I recommend Legacy Law and their services.
Patsy Christensen
August 31, 2021.
Thank you LegacyLaw Estate planning was a breeze with them .
Deborah Doak
August 21, 2021.
Bethany was great! Very professional and personal. She was always able and willing to answer our questions and come up with the best solution for our needs. I highly recommend her for estate planning and to navigate all the legal intricacies related to that.
Jeff Wilson
August 20, 2021.
Bethany was very professional, reasonably priced and very thorough when working with us on our trust. We highly recommend her for very individualized planning and attention to detail.
Robin Schamber
August 9, 2021.
Bethany was very professional and easy to work with. She answered all my questions and helped me put together a good living trust that I feel comfortable with. I would highly recommend her to anyone who is thinking about estate planning.
Steve Boyd
August 3, 2021.
Stay Informed

Join Our FREE eNewsletter

Subscribe!
Legacy Law LLC

2620 Commercial Way, Ste. 160
Rock Springs WY 82901

Get Directions
Integrity Marketing Solutions - Estate Planning Marketing
Powered by
crosschevron-down