Whether you’re seeking to manage your own assets, control how your assets are distributed after your death, or plan for incapacity, trusts can help you accomplish your estate planning goals. Their power is in their versatility - many types of trusts exist, each designed for a specific purpose. Although trust law is complex and establishing a trust requires the services of an experienced attorney, mastering the basics isn’t hard.
What is a trust?
A trust is a legal entity that holds assets for the benefit of another. Basically, it’s like a container that holds money or property for somebody else. You can put practically any kind of asset into a trust, including cash, stocks, bonds, insurance policies, real estate, and artwork. The assets you choose to put in a trust depend largely on your goals. For example, if you want the trust to generate income, you may want to put income-producing securities, such as bonds, in your trust. Or, if you want your trust to create a pool of cash that may be accessible to pay any estate taxes due at your death or to provide for your family, you might want to fund your trust with a life insurance policy.
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Posted by Michael Chapman at 12:38 PM PST
Last Thursday reversal to the down side thwarted the bulls attempt to take the market to new highs. The market had priced in a rate cut by the fed in the first half of 2007. The realization that this may not happen until the second half of the year (if at all in 2007) caused the market to sell off Thursday and Friday.
Thursday sell off was a distribution day. Which makes three in four weeks. We removed this indicator from the “upside” of the Bull Bear Review.
Read the Bull Bear Review (PDF) >>>
Posted by Michael Chapman at 12:38 PM PST
The Tech stocks took it on the chin last week. The Nasdaq 100 index has been lagging its blue chip peers for nine weeks. Friday’s close of 1796 was below its weekly close of 1800 on November 17, 2006. Interest rates are climbing around the world and the U. S. 10-year bond remains in a downtrend. The realization that the next move by the Fed may be a rate increase could be the catalyst that derails the stock markets uptrend. I still expect the Standard and Poor’s’ 500 cash index (S&P) to finish its topping process by mid February and then make a strong contra seasonal move down into May.
Read the Bull Bear Review (PDF) >>>
Posted by Michael Chapman at 12:37 PM PST
By definition, estate planning is a process designed to help you manage and preserve your assets while you are alive, and to conserve and control their distribution after your death according to your goals and objectives. But what estate planning means to you specifically depends on who you are. Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate planning needs. For example, you may have a small estate and may be concerned only that certain people receive particular things. A simple will is probably all you’ll need. Or, you may have a large estate, and minimizing any potential estate tax impact is your foremost goal. Here, you’ll need to use more sophisticated techniques in your estate plan, such as a trust.
To help you understand what estate planning means to you, the following sections address some estate planning needs that are common among some very broad groups of individuals. Think of these suggestions as simply a point in the right direction, and then seek professional advice to implement the right plan for you.
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Posted by Michael Chapman at 12:36 PM PST
