Tag: trust

Making a Charitable Bequest

A gift to a charity can be made in a Will or Trust. If you already have a Will or Trust, a charitable bequest can be added by means of a codicil to a will or an amendment to a trust.

 

Prior to making any gift, it is important to know the correct name of the organization to ensure that the money goes to its intended beneficiary and to avoid confusion.

 

Bequests come in different forms.

 

Specific Bequests: A specific bequest is a gift of a particular item. For example,” I give my diamond engagement ring to Charitable Organization.” If you dispose of your diamond ring before death, than this… Read the rest

Lessons for Trustees and Beneficiaries Part I – What is a Trust and Who Has to Know About it?

What is a Trust?

A Trust is a legal document that sets out the rules for the transfer of property (Ie. When the property will be distributed, How much, To whom, etc.). The person who creates the trust and is seeking to transfer his property is called the Settlor or Grantor.  The person who holds onto the property is called a Trustee and the person who is to benefit from the property is the Beneficiary. 

Who Has to Know About a Trust?

According to Ohio Law, unless the Trust says otherwise, a Trustee must keep all current beneficiaries of a Trust informed about the administration of the Trust.  If a beneficiary… Read the rest

When Attempts to Avoid Probate Go Very Wrong

Probate is seen by most as a very negative process and one to be avoided at all cost.  Probate is not the big, bad wolf, it is simply the legal process that takes places after someone dies.  The primary purpose of the probate process is to pay the deceased person’s debts and taxes and transfer his property to his heirs and beneficiaries.  True, probate is time consuming and can be costly.  However, sometimes an attempt to avoid probate can end up costing a person much more.

Example- John, hearing about the horrors of probate, decides to gift his home, which he purchased in 1951, to his children now,… Read the rest

Using an Irrevocable Trust to Plan for Medicaid

There are many Medicaid planning strategies designed to transfer assets without incurring a penalty.  (See http://www.perlalaw.com/blog/personal-caregiver-agreement/).  This blog will explore many of these strategies.  One such strategy is the Irrevocable Trust.  With an Irrevocable Trust, which is a trust that cannot be changed or terminated, drafted so that you receives only income and not principal, you can transfer your assets, wait 60 months and apply for long-term Medicaid without penalty. 

Why Can’t I Set Up a Revocable Trust Instead?

As a revocable trust can be changed or … Read the rest