It’s the halfway point of 2024. Most individuals/couples have submitted their 2023 income tax returns. Planning for Required Minimum Distributions and charitable gifts tends to begin after the summer.
When should you consider (or reconsider) your estate plans?
Wills and Trusts
Your state of residence often influences whether your estate plan will be principally based upon a will or a living trust. In states where a will and living trust are both used, it may be that whatever property you distribute through your will pursuant to state law will pour over into your living trust for after-life distribution.
For those who principally use wills and codicils to pass their probate assets, there are roles for their fiduciaries (executors, trustees, and personal representatives) to play. A carefully prepared will should provide specifics on the distribution of all types of property—in-kind or as specific or residuary bequests. The roles of your fiduciaries will be defined, and their successors, if any, named.
Trusts Established in the Estate Plan
Many individuals use after-life trusts, established in their wills, for succession planning. Sometimes, those trusts come in the form of a charitable remainder trust (CRT). This is especially useful when the lifetime beneficiary of that trust is an adult child who is disabled. Coupled with a special needs trust, a CRT may be relied on to provide a fixed lifetime income for the child (overseen by the trustee/s of the CRT) as an additional resource.
A CRT may also be established for a spouse, to assure a steady stream of lifetime income professionally administered by the trustee.
Your estate planner will be able to advise whether testamentary trusts are useful in executing your estate plan.
Philanthropy in General
Many individuals consider after-life philanthropy to be important to them and their families. A charitable bequest of a fixed amount or as a percentage of your estate, perhaps designated for purposes or programs that are meaningful to you, may be accomplished in your will or trust. Or, you may elect to make your after-life charitable gifts through designations in your IRAs or other qualified plans. This is where tax planning coincides with estate planning.
We’re happy to assist you and your estate planner.
May we show you how?
Please contact us at
plannedgiving@afhu.org or 212.607.8524.
