Estate Planning, Part II: Advanced Planning
Welcome back! This month, we're focusing on advanced estate planning, highlighting trusts and digital
asset protection.
1. What is a Trust? A trust lets someone (the trustee) hold and manage assets for another person (the
beneficiary). It's a useful way to organize wealth and make sure your wishes are followed.
2. Types of Trusts:
Revocable Trusts: You keep control and can change or cancel the trust.
Irrevocable Trusts: Assets are removed from your estate, potentially offering tax perks and asset
protection.
Testamentary Trusts: Created by your will and take effect after you pass away, helping manage
how assets are distributed.
Living Trusts: Set up while you're alive, these can help avoid probate and keep matters private.
3. Benefits of Trusts: Trusts let your assets skip the slow and costly probate process, so your
beneficiaries get what you leave them faster.
As a general guideline, we recommend clients consider trusts when their estate involves factors such
as multiple properties, business interests, or blended families. For instance, you may want to explore
trusts if your estate includes international assets, minor children, or charitable giving goals.
4. Protecting Digital Assets in Your Estate Plan
As our lives move online, it’s becoming more important to include digital assets in your estate plan.
Digital assets cover things like social media accounts, online banking, and personal files such as photos
stored in the cloud or on devices.
Why It Matters: Without a plan, your loved ones may not be able to access these accounts, which could
lead to lost memories or financial issues. Some platforms may delete accounts after inactivity, causing
permanent loss of data.
How to Protect Your Digital Assets:
Make a List: Write down your digital accounts, passwords, and what they’re worth.
Choose Someone to Manage Them: Pick a trusted person to handle your digital assets after you’re
gone.
Check Account Rules: Review each platform’s policies for access after death.
Include Digital Assets in Your Will or Trust: Clearly state who should manage or receive these
assets in your estate documents.
By taking proactive steps today, we can better prepare for an uncertain tomorrow. Do you have
questions about updating your will or learning more about trusts? As always, just give us a call!
This information is not intended to be a substitute for specific individualized tax or legal advice. While the tax or legal information provided is based on our understanding of current laws, and has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. Neither LPL Financial, nor its registered representatives, provide tax or legal advice. We recommend you consult with a qualified tax or legal advisor to discuss your specific situation.
