WHAT IS ESTATE PLANNING? (PART III – OTHER ESTATE PLANNING TOOLS)

As noted, wills and trusts are the most common estate planning tools, but are far from the only tools.  Depending on family dynamics, estate size and composition, a client may also want to engage the following.

FAMILY LIMITED PARTNERSHIPS AND LLC’S

For families that own significant assets such as rental property or operate small businesses can benefit from the use of entities such as family limited partnerships (FLPs) or family limited liability corporations (LLCs).  These entities provide several benefits for parents and subsequent generations.

SHOULD I NAME MY TRUST AS THE DESIGNATED BENEFICIARY OF MY RETIREMENT BENEFITS?

While most assets can be transferred into trust, certain assets are contractual in nature, and therefore cannot be “funded” into your trust.  The most relevant of these contractual assets are life insurance policies and retirement benefits.

While you cannot place these assets in trust*, you can name your revocable living trust (RLT) as the Designated Beneficiary.