Estate Planning Archives - Werner Law Firm

Estate Planning

What Are Grantor Trust Rules? - Werner Law Firm

What Are Grantor Trust Rules?

A trust is a legal vehicle for holding assets and property “in trust” for another person. Trusts have three basic elements to them – the trustor, the trustee, and the beneficiary. The trustor is also called the grantor and is the creator of the trust whose assets and property are funded into the trust. Due

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Trust Fund Basics: Everything You Need to Know - Werner Law Firm

Trust Fund Basics: Everything You Need to Know

A trust fund is a trust dedicated to providing a wealth source for a beneficiary, usually for some time. Trust funds and trusts are generally interchangeable. The main difference is that a “trust fund” mostly describes an inheritance or estate planning tool meant to provide a source of income to a beneficiary over a period.

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The "5 and 5 Power" in Trust Documents - Werner Law Firm

The “5 and 5 Power” in Trust Documents

The “5 and 5 power” rule, also known as the “5 by 5 power” or “5 or 5 power” clause, is sometimes instated in trusts to let beneficiaries to a trust withdraw a certain amount of value from the trust every year before it is officially scheduled to distribute itself. To understand why this might

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How to Establish a Blind Trust - Werner Law Firm

How to Establish a Blind Trust

Trusts exist to hold money and assets in trust for a beneficiary on behalf of a grantor or trustor. These are legal entities defined and limited by a trust document and called into existence to separate the contents of the trust from its original owner for the beneficiary. Trusts exist in many shapes and forms,

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How Life Insurance Works With Wills and Trusts - Werner Law Firm

How Life Insurance Works With Wills and Trusts

Life insurance policies exist to provide an additional financial safety net for our loved ones in the case of an untimely death or serious illness. This is especially true for primary earners or breadwinners, who may be worried about what might happen to their family if they were to disappear. Through a life insurance policy,

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Duties and Responsibilities of a Conservator - Werner Law Firm

Duties and Responsibilities of a Conservator

A conservator is appointed by a court to care for an adult who is mentally or physically disabled and incapable of caring fully for themselves, or a minor in need of an adult to manage finances and properties under their name. Conservators have a fiduciary duty to their conservatees, and the exact limits of their

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What Is an Irrevocable Life Insurance Trust (ILIT)? - Werner Law Firm

What Is an Irrevocable Life Insurance Trust (ILIT)?

Life insurance policies provide a plethora of tax advantages depending on the policy and your circumstances, especially regarding its beneficiary. But for you, the policyholder, a large life insurance policy payout after your death may count towards your estate’s total value and potentially push you over the edge of the federal and/or state estate tax

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What Is a Small Estate Affidavit? - Werner Law Firm

What Is a Small Estate Affidavit?

In California, a “small estate affidavit” is often used to resolve final estate matters for a deceased person who died without a will and can help fast track the costly, lengthy process of probate. A small estate affidavit is a state-specific legal document used to skip the estates’ probate process with a total value under

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