 
WHEN DO YOU NEED REMAINDER BENEFICIARIES?What is a LIFE ESTATE?Most creators of a trust want to enjoy the assets for the remainder of their life and the life of their spouse. By creating a LIFE ESTATE, you retain use for the remainder of your life.What is a REMAINDER BENEFICIARY?A REMAINDER BENEFICIARY receives benefits after you are gone. You can even designate various limits or benefits regarding disbursals, equities, or separate assets.Enhanced Trust Provisions and OptionsThere can be tax benefits or reductions by provisions and language within the trust. It is often possible to reduce or shift taxes to a lower tax bracked person. Get professional advice from your accountant or tax preparer.You can also dictate that the residence cannot be disposed of (nor can you be moved to a convalescent home) during your lifetime. This removes the incentive for relatives or beneficiaries to sell your home to enjoy proceeds before you are gone. You can further designate to remainders of the remainders, or retain (or remove) certain classes of beneficiaries. For instance you could designate medical students as a specific class of beneficiary, just like naming a charity. It's also possible to restrict the future use of a property. For example, stating that beneficial real estate could only be used as a baseball park. Attempts to use the park for other activities (like football) could cause the property to revert back to the trust.  |