Duluth Georgia Estate Planning Legal Blog

One of the most common reasons for setting up a trust in Georgia, or any other state for that matter, is to generously provide for children or grandchildren. Typically, distributions won't begin until many years later. Because of this, some individuals who set up trusts tend to hold off on letting children, grandkids, or other beneficiaries know about the wealth or assets that may be coming their way.

There are plenty of valid reasons for setting up trusts so that distributions are held back until a certain age is reached, or dished out with specific requirements or stipulations attached. Still, this is entirely different from the process of trust makers (settlors) officially letting beneficiaries know a trust exists. Some well-off parents or grandparents may wish to keep beneficiaries in the dark to avoid issues with extravagant spending and other reckless behaviors. But many states have either adopted a Uniform Trust Code (UTC) or similar laws that require trust beneficiaries to be kept reasonably informed.

Some estate planners in Georgia might be concerned about the probate process. In general, all estates must pass through probate unless there are provisions in place to transfer assets to heirs in other ways.

For example, heirs could be made joint owners on accounts and other assets, but the disadvantage is that this means the heir is the joint owner while the person is still alive. Another option is to use transfer-on-death provisions. However, many experts say the best approach to avoiding probate is to place all assets in a revocable trust.

In 2016, there were more than 42,000 deaths related to opioid use, which was a 500 percent increase from 1999, according to data from the Centers for Disease Control and Prevention. Georgia residents who are trying to create an estate plan may need to account for a loved one's addiction. This may be necessary to protect the best interests of the addict as well as the family.

It is rarely a good idea to leave an addict out of a will or trust entirely. It is also rarely a good idea to leave large sums of money with no strings attached. An incentive trust could be an effective tool in providing for an addict while ensuring that he or she is committed to recovering or staying sober. Families will need to search for both qualified legal representation and the right trustee when creating this type of document.

People with large estates in Georgia might want to investigate the potential usefulness of life insurance within an estate planning strategy. A life insurance policy could provide cash soon after the benefactor's passing to assist heirs with near-term estate administration expenses. Even heirs of a wealthy individual might not have the resources on hand to meet immediate expenses like funeral costs, probate court fees and estate taxes. Life insurance relieves heirs of this burden and prevents the rushed sale of valuable assets at a discount.

Life insurance policies generally pay beneficiaries, which could be people or trusts, soon after the death of the policyholder. This money could cover the many expenses that arise, such as medical bills from end-of-life care, other debts and fees for professionals such as accountants or attorneys. Some estates might impose federal or local tax bills on heirs that are usually due in the first nine months after receiving an inheritance.