Testamentary Trust and Mistakes You Should Avoid

A testamentary trust is a legal trust that is created through precise instructions laid out in a deceased person’s Will. A testamentary trust is irrevocable and goes into effect at an individual’s death. In other words, when this individual dies they will no longer be able to change the terms of their Will. However, a testamentary trust is revocable during a person’s lifetime because it technically doesn’t actually exist yet.

A proper Will, and therefore a testamentary trust, is something that is seemingly under-utilized estate planning tool in America. According to a survey by Harris Poll (https://www.usatoday.com/story/money/personalfinance/2015/07/11/estate-plan-will/71270548/), about 2/3rds of Americans do not have a Will.

A Will may contain several testamentary trusts for various beneficiaries and may address all or any portion of the individual’s estate. For example, a testamentary trust can be created for the benefit of a spouse, for children, or for a disabled relative. A testamentary trust can be used to structure how the grantor wants his/her property distributed, just like a will but with these trusts, one can distribute the payments from the trust over a period of time rather than transferring the money in one lump payment. This is particularly useful when giving the property to minor children and beneficiaries with disabilities. These trusts, under certain circumstances, can provide tax advantages when setting up correctly.

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How to Choose a Financial Planner

There are two types of people in the world financially — (1) Those that spend first and save last, and (2) those that save first and spend last; If you’re the type of person who falls into the latter group, then it may be time for you to choose a financial planner. (more…)

Knowing How To Use A Trust Creates Big Benefits

A strong advisor-client relationship is important to understanding how to use a trust and getting the most benefits out of the financial framework. Wealth Advisors Trust has lifted the fog on trust services secrets and is helping its clients understand how to use a trust.

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Ease Family Worries: Preparing Your Trust Administration Handbook

Preparing a Trust Administration Handbook for guidance as to the efficient handling of tax issues and long-term goals of the grantor can be the difference between financial success or destitution.

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Fees, Fees, and More Fees; What Do They Mean?

The old adage that the only two certain things in life are death and taxes still rings true in 2018. Nowadays it seems to be “death, taxes, and fees” because everywhere you turn consumers face fees. Often it is the same game when it comes to trust admiration. But Wealth Advisors Trust offers its services without the endless stream of fees while providing the same exceptional customer service and attention to detail.

They’re endless. Termination fees; wire transfer fees; bill pay fees; special asset service fees; hourly rates; copy charges; travel costs; and extra fees for returning a beneficiary’s phone call. Costs can add up quickly and sooner rather than later beneficiaries are left funding a mile long list of fees instead of enjoying the security provided by their trust. Finding solace within the protections of your trust is only made harder when facing fees. Attempting to avoid these fees by handling the trust administration yourself is unadvised and potentially dangerous to one’s financial security and opens you up to potential legal liabilities. 1

Wealth Advisors Trust has three categories of fees simplified for maximum customer satisfaction: Agency Trustee Fees, Corporate Trustee Fees, and Irrevocable Life Insurance Fees.

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Financial Safeguards A Pivotal Tool In Financial Planning

Understanding the need for thorough safeguards in the trust administration process is essential for relatives with special needs or beneficiaries with perhaps untrustworthy spending habits. The trust administration process offers several safeguards for many situations.

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IUL vs Roth IRA; Which is best for your client?

This article is a repost of an article written by our friends at Advisors Resource Company in Coppell, TX.  You can read their full article here: http://advisors-resource.com/seven-ways-to-handle-unexpected-expenses-and-financial-emergencies/

 

“Six in 10 workers report they have less than $25,000 in total savings and investments; including 36 percent who have less than $1,000.”1 – Employee Benefit Research Institute and Greenwald & Associates

 

Cause for Concern?

Retirement planning is crucial to maintaining financial security and retaining a specific standard of living. Eighty-eight percent of all Americans are worried about “maintaining a comfortable standard of living in retirement,” according to a 2012 survey by Americans for Secure Retirement.

Based on recent statistics, this majority of Americans are justified in their concern. The U.S. Department of Labor estimates that an individual will need 70 to 90 percent of their preretirement income to maintain their current standard of living once they begin retirement.

Additionally, one-third of U.S. homeowners, between the ages of 30 and 59, will not be able to maintain their standard of living after retirement, even if they delay their retirement until age 70, according to a 2012 study by the Employee Benefit Research Institute.

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Top Five Things To Consider Before Establishing A Trust

What one does with their wealth is as personal as deciding what church to attend. There are several options for protecting your lifelong work or inheritance, passing assets to the future generations of your family, or simply securing what wealth exists to protect it from double taxation. 1 When considering these options and potential problems, a trust administration checklist comes in handy to ensure you cross your Ts and dot your Is. These decisions will affect your family for years to
come, so making the right decision the first time is important.

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Deciding Trust Distribution: Goals, Priorities & Purpose

Thinking ahead about the type and quantity of a trust distribution your trustee will disburse to your beneficiaries is the first important step. Having some plan is better than having no plan, and heavy tax burdens and lackluster heirs further complicate the game plan.

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Trusteed IRA SmartIRA

Trusteed IRA – A quiet and powerful Client solution

A Trusteed IRA is a simple and powerful financial planning tool.  To know the power of the Trusteed IRA it’s important to describe the IRA industry for all of us.  The IRA market has grown substantially over recent years as the baby boomer generation prepares for retirement. With nearly 40.4% of all American households investing in at least one IRA, total IRA assets topped $8.5 trillion in the third quarter of 2017.[1] This amount represents more than a 30% of the total $27.2 trillion retirement market in the United States and has grown at an average rate of 7.4% percent annually since 1990.[2].   The IRS has accepted our Trusteed IRA solution which is called the SmartIRA™.

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