DO YOU TRUST YOUR TRUST?
Learn about these 3 critical mistakes made in a Family Trust!
Trusted Partners
Did you set up a trust to protect your family?
When you are a good steward of your money, you set up a trust to protect from probate, long term illness and non-family members that will try to steal your family's money.
The Basics of A Trust
Why people set up a trust
Protection against losing up to 15% in probate and settlement costs
Probate can take up to 10% to 15% of your assets and if you have property in multiple states it can cost even more
Protection against long term illness and the protection of assets and income
Trusts that are set up correctly can assign a trustee or protector to assure that assets and income are not lost to long term care, or health care catastrophes
Distribution of assets to selected people while leaving others out
A trust should be designed to distribute assets to the right bloodline and can protect against second marriages, gold digging in-laws and even non related con-artists
What Happens When The Trust Is Not Correct
If your life insurance names a spouse or children, the assets bypass the trust and can be lost or stolen
If your IRAs, Retirement Plans or Annuities name a spouse directly, the assets can leak outside the family and go to non-related parties
If you name a child as a trustee, you could be subjecting them to lawsuits and loss of asset protection
If a trust does not name a trust protector, it may allow trustees to do whatever they want- A Trust Protector is different from a Trustee
If you are missing the this one clause, it could open the chance for in-laws and second marriage children to divert funds to themselves
Without these special tax clauses, children can be subjected up to 65% tax on IRAs and retirement plans (Secure Act 2.0 January 2023)
A Lifetime of Work Can Be Lost In A Minute
All Trusts Are Not Equal Or The Same
Where do people get trusts?
General Lawyers
72%
Estate Lawyer
12%
Internet DIY
7%
Licensed Doc Prep
9%
Why So Many Trusts Don't Work
Online programs that create trusts, only provide paper, and don't work with you individually to fund your trust
General lawyers may not be up to date on current laws and in many cases use old templates to save money on software
Estate lawyers are usually very expensive and in most cases don't work to retitle your assets and expect that you do all this and hopefully you do it correctly
Most advisors that draft trusts have not been a trustee and only draft based on the software and leave out the experience of how a trust is really handled after death
Licensed Document Preparers are not usually trained in tax planning, thus leaving out considerable tax problems with estate tax, tax on retirement plans, annuities and individual state estate and capital gains taxation
These are real life examples of experiences we've had in our firm
Family Devastated
When a family lost their father and mother, they soon found out that the trust that their family lawyer drafted would not work. The lawyer never told them or helped them get ALL their assets into the trust and probate was needed. After an ex-spouse surfaced and brought a lawsuit in court that she was promised a large sum, the family lost almost everything through a five year legal battle.
Inheritance goes to wife's family and not the children
When a husband and wife died together in a car accident, all their retirement plans went to the wife's brothers and sisters. The medical examiner deemed the husband died by one minute prior to the wife. The husband named the wife as the primary beneficiary and even though they died together, the wife was deemed to live by one minute more. Since the wife named her husband as primary beneficiary, and her brothers and sisters as secondary, all the husband's retirement plans went to the wife's siblings. The husband's children from his first marriage lost millions due to a faulty trust plan.
Son loses $897,000 IRA
A retired engineer hired us to do his trust and financial plan. During the drafting of the trust, the client died before we could finish. Within ninety days, the State of Pennsylvania confiscated our client's IRA worth $897,000. The reason was the son was on Social Security Disability and the state used THE FILIAL RULE to take all his son's inheritance. There are now 30 states that are going after children's inheritance, not only after death but even for long term care costs.
Copyright 2024 Wiser Wealth Academy. No part of this discussion should be considered financial, legal or tax advice. The presentation and the discussion is only for review and should not be considered any part of an engagement for any services. Only a licensed lawyer can dispense legal advice while a licensed document preparer can draft a legal document.
Disclosures
No part of this discussion or information should be considered legal or tax advice. This web page and the videos and information herein should be considered a presentation for educational purposes only and it is up to you to seek out the advice from licensed individuals in each area of need.
H&H Tax and Business Advisors, LLC is a licensed Document Preparation Firm in the State of Nevada and renders legal document preparation only and not legal advice.
Percentages on where people get trusts is from experience in our firm and may differ based on location, and net worth. Other problems or issues mentioned are based solely on the experience of our firm and may not be experienced by other people.
H&H Retirement Design and Management, Inc
We are an SEC Registered Investment Advisory Firm and you can access our Federal Filing outlining how we work, past history, as well as all the principals and advisors that work on the risk analysis. The purpose of this federal filing is to give the public transparency to a fiduciary. If a Fiduciary does not have a ADV Part II then they are not a fiduciary with the SEC. This disclosure serves only as a notice of a related company and no part of this webpage or information contained herein should be considered investment, tax or financial planning advice.
Contact and Other Disclosures
Main Office
1980 Festival Plaza Drive Ste 300
Las Vegas, NV 89135