One of the primary goals you probably have when you begin the estate planning process in Michigan is to keep as many of your assets as possible from being taxed so that you can preserve them for your heirs. Trusts are tools that may achieve your objectives. At the Bingham Legal Group PC, we often advise people about the benefits of charitable trusts.
As a trustee in Michigan, you agreed to take care of certain tasks for the settlor. According to the National Paralegal College, you must perform your responsibilities with the level of care that you would use if the property or assets in question were your own. If you are not a professional fiduciary, you would not be held to the same standard that would be expected from a trust company or financial institution. However, you could be held personally accountable for losses that come about because of any negligence in your duties.
If your children are under the age of 18 when you die, they will need a guardian, but the best person for the job may not be the one who has the financial assets to provide for them. The attorneys at the Bingham Legal Group PC often work with parents who have these concerns for their children’s future.
If you have decided to set up a charitable trust, you may believe that taking the proper steps now will ensure that your wishes are honored after your death, regardless of circumstances. However, what happens to your trust if the purpose you wanted it to fulfill is no longer possible? In this type of case, the court may invoke the cy pres doctrine, which would allow the funds to be used in a manner that matches your original intentions as closely as is feasible.
When you have medical needs because of a disability, having your own assets in Michigan can sometimes ironically become a liability. While you may have enough to take care of things right now, that amount of income may quickly be depleted due to the high costs of your care, and when you need help later, it may not be accessible. Not only that, you may be currently ineligible for many services that are essential to your well-being. Our team at Bingham Legal Group PC understands when a special needs trust is the right option, and the avenues that have recently become available to you.
In several posts on this blog, we discussed setting up a trust plan to make sure your pets are taken care of if you are incapacitated or pass away before they do. As we pointed out, a pet trust may be the most effective way in ensuring the needs of your “fur babies” are met. At the Bingham Legal Group PC, we understand that you and other Detroit residents want to be sure your loved ones, including your pets, are provided for.
You may be considering setting up a trust fund to benefit your loved ones after your death. Like many Detroit residents, you might also be thinking about developing a trust that can be put into effect while you are still alive, especially if you are worried that you might become incapacitated during your later years and unable to make legal decisions. You might, however, have heard from well-meaning friends and family members that trusts are only for the extremely wealthy. This is a common belief, but the truth is that nearly any family can benefit from a well-planned trust.
There are many different types of estate planning available to families in Detroit, ranging from simple wills to trust funds and more. You are likely to want to set up your estate planning to benefit your loved ones after you pass on. Did you know that it is also possible for a trust to generate income? Here, we will discuss how you might set up such a trust, as well as the reasons you might want an income-generating estate plan.
One of the best things about planning trusts is that there are a variety of different trusts available for various needs, and you have a great deal of flexibility in customizing a trust to suit your family’s individual circumstances. If you plan on leaving a large portion of your estate to a family member you are concerned might not be equipped to handle such an inheritance, you might consider setting up a spendthrift trust. It is important that you and other Detroit residents understand how this type of trust works.
Last week, we discussed appointing guardianship in your will or trust planning in case you passed away while your children were still under your care. In some cases, people in Detroit and elsewhere can set up a guardianship, or conservatorship, over an adult. The legal processes for obtaining guardianship over an adult can be complex. At the Bingham Legal Group PC, we assist families in creating conservatorships and other estate and family planning matters that are ideal for each individual situation.