Developing an estate plan now that includes an
estate planning trust can help to reduce or avoid potential conflict between
your loved ones in the future.
And, utilizing an estate planning trust can
help protect and transfer your assets to beneficiaries. From quickly covering
funeral expenses to easily passing along remaining money to the people and
causes you care most about, an estate planning trust can truly help your family
when they need it most.
Below is a summary of the 5 Ways an Estate
Planning Trust Protects Your Wealth and Your Loved Ones. If you are interested
in reading the entire white paper, click here.
1. Use the money you
already have
Consider your current finances. Do you have a
rainy day fund, CD, money market account or an annuity? You can use the money
you already have to fund an insurance policy, which is placed in a trust.
While wills are great to have, if you only
have a will, it may take months or even years for beneficiaries to gain access
to your money after you pass away. However, funds in an estate planning trust
may be available to beneficiaries in only a few days.
2. Reserve assets for
your favorite charities
Most estate planning trust options offer the
possibility to designate funds to causes closest to your heart. Providing money
to your favorite charity allows you to create a living legacy by helping the
organization continue their meaningful work.
One of the best aspects about an estate
planning trust is that you aren’t limited with the number of beneficiaries you
can choose. That means you can list your loved ones as a beneficiary and also
your favorite charities.
3. Ensure your funds
are exempt from probate
The funds in an estate planning trust are
exempt from probate, which means less wait time before your beneficiaries
receive funds.
Arranging the when, where and how details of a
funeral is difficult enough when emotionally overwhelmed. If your beneficiaries
are left to plan your funeral without an estate planning trust, they’re likely
to pay thousands of dollars out-of-pocket in order to cover the costs, while
your savings, mutual funds and other assets are in probate.
An estate planning trust offers so much more than asset
security. It brings peace of mind in one of the most difficult times in your
loved ones’ lives.
It’s common for funeral homes to expect
payment before services have begun. If your loved ones are not prepared, you
may be unintentionally putting them thousands of dollars in debt. Assets
experience probate delays lasting from months to years.
Incorporating an estate planning trust into
your financial portfolio can help you easily eliminate the struggles of
out-of-pocket funeral expenses for your beneficiaries.
4. Safely leave assets
to a beneficiary with a disability
If your child, grandchild or other beneficiary
has a disability there most likely is a Special Needs Trust in place. If you
designate money for that individual in your will there could be issues.
First, there is probate, which can take
months, if not years in some cases to settle. Second, any money you provide
directly to an individual with special needs could very well disqualify them,
at least for a period of time, for any government benefits they may currently
be receiving.
Purchasing a whole life insurance policy on
yourself, and placing that policy into an estate planning trust and naming the
Special Needs Trust as a beneficiary, gives you peace of mind knowing the money
you want to provide is not only protected during your lifetime, but will
transfer quickly to the trust previously set up for the care of your loved one.
5. Protect your assets
from creditors
Events happen in life that have financial
consequences which could possibly jeopardize your best intentions of leaving
money to loved ones or charities, if not both, after you’re gone.
Setting up an estate planning trust can ensure
the money you intend to leave to beneficiaries, along with the funds designated
for end of life needs, will be protected from creditors during your life should
debt or a lawsuit become an issue. The Irrevocable assignment to the trust
guarantees that the money cannot be seized by anyone and the proceeds can only
be dispersed as you intend.
NGL Estate Planning
Trust
NGL offers estate and funeral planning trusts
that help to create a complete financial plan that best fits your needs.
We understand the value of your legacy and
that’s why NGL’s trusts protect your assets while you are alive and transfers
them to your beneficiaries when you pass away. When you meet with a planning
professional, they can explain the various options available to you.
Visit www.nglic.com to learn more about NGL and
how our products can provide support during times when it’s needed most.
Product underwritten by National Guardian Life
Insurance Company (NGL). Based on issuance of new AssetGuard policy assigned to
a trust. NFECRT form series, et al. National Guardian Life Insurance Company is
not affiliated with The Guardian Life Insurance Company of America a/k/a The
Guardian or Guardian Life.
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https://nglic.blog/2020/01/10/5-ways-an-estate-planning-trust-protects-your-wealth-and-your-loved-ones/
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