If you have children with disabilities or worsening conditions, you may worry about their future. You may have assets to leave behind for their care but harbor concerns that it will interfere with their ability to obtain needed government aid, such as Medicaid benefits, in the future. Medicaid requires recipients to have limited assets and income, and inheritance may push your children over the limit. A special needs trust can help avoid this situation. What is a special needs trust? A special needs trust is a vessel for you to pass down property and funds. Its primary advantage is that its co ..read more

There is an aphorism that the only certain things in life are death and taxes. Probate court is where those two certainties of life sometimes collide. Those with substantial personal holdings may leave behind large estates when they die unless they plan carefully ahead of time. Certain tax obligations are inevitable. For example, both the estate and the decedent may be responsible for income taxes. The personal representative of the estate must file tax returns and set aside resources to handle any outstanding income tax obligations after someone’s passing. If the probate process involves the ..read more

Estate taxes can diminish the value of an estate when someone dies. As a result, they have the potential to leave loved ones with less than anticipated inheritance. However, utilizing a trust can be an effective strategy to avoid or reduce estate taxes in Connecticut. Trusts offer flexibility and control over the distribution of assets. This helps people protect their wealth and provide for their heirs according to their wishes. Irrevocable trusts for estate planning Irrevocable trusts are a common tool used in estate tax planning to remove assets from an individual’s taxable estate. Once asse ..read more

When planning for the future, considering a trust as part of your estate plan can be a wise choice for managing and protecting your assets. Trusts can seem complex, leaving many people with questions about their workings and suitability for their estate planning needs. Further understanding of what they are can guide estate planning and give individuals the confidence they need to proceed. What is a trust? A trust is an arrangement where a trustee manages assets on behalf of a beneficiary, as directed by the grantor, defined as the person who establishes the trust. They protect the grantor’s a ..read more

The Achieving a Better Life Experience Act allows individuals with disabilities to save money in a tax-advantaged account for qualified disability expenses. Connecticut implemented the ABLE Act in 2016, providing residents with disabilities and their families the opportunity to save for the future without jeopardizing their eligibility for certain government benefits. Benefits One of the key benefits of the ABLE Act is that it allows individuals to save up to $100,000 in an ABLE account without affecting their eligibility for Supplemental Security Income benefits. Additionally, any funds in th ..read more

Planning can secure your family’s financial stability for future generations. One way to accomplish this is by establishing a dynasty trust. This type of trust allows you to preserve and grow your assets while minimizing taxes and protecting your wealth from various risks. Basics If properly designed, a dynasty trust will last multiple generations, providing ongoing financial benefits for your descendants. Connecticut law permits dynasty trusts to exist for up to 800 years. Transferring assets into this kind of trust ensures that your wealth remains intact and supports your family members ..read more

Those who achieve economic success often hope to pass their good fortune to others when they die. Estate plans allow individuals to choose specific beneficiaries to receive their assets, including family members and charitable organizations. Maximizing what someone leaves for their intended beneficiaries usually requires that they minimize certain liabilities, like estate taxes. Strategic gifts are often part of a broader estate planning effort. A testator who worries about the state tax liability might plan to diminish their assets a little each year by making planned gifts for their family m ..read more

Charitable remainder trusts are a way for you to donate to a charity while still providing income for yourself or your loved ones. As part of setting up this trust, you should determine which kind of charitable trust best suits your priorities. People can create a charitable remainder unitrust or a charitable remainder annuity trust. Both allow donors to gift assets into an irrevocable trust, take a tax deduction and receive payments from the trust. However, CRUTs and CRATs each have a different formula for paying beneficiaries. The payment of a CRUT In a CRUT, the annual payments to beneficia ..read more

Planning for the future is a responsible step to take. One particular way to secure your assets for your loved ones is by creating a living trust. A living trust allows you to dictate how your assets will pass to your beneficiaries after your passing. If you want to leave conditional gifts to your beneficiaries, there are additional processes and considerations of which to be aware. Clearly define conditions The American Bar Association defines a living trust, or revocable trust, as a trust that you create during your lifetime to help you manage your assets. For all types of assets you include ..read more

A living trust is a legal arrangement that enables you to control the distribution of your assets during your lifetime and after your death. This kind of trust helps ensure you are in charge of your assets. Set up a living trust A living trust lets you maintain control over your assets while providing clear instructions on their distribution. It secures a seamless transition of wealth without the need for probate court. Having this document in place can save time and costs. Knowing how to create this legal document helps you protect your holdings. Identify assets: Make a comprehensive list tha ..read more