Georgia residents may have planned to pass down their assets and legacy directly to their children. However, this may not always be a wsie idea. This is because a person's offspring may not be qualified to run a business or handle money on their own. They also may not be interested in running a family business. Therefore, it can be beneficial to create a succession plan that allows future generations to benefit from an asset without controlling it.
The Tax Cuts and Job Act of 2017 changed the tax code in a number of important ways. However, one overlooked aspect is how the law impacts estate planning strategies, especially with regard to irrevocable life insurance trusts, or ILITs.
Families in Georgia that include a person with special needs must consider that individual's long-term welfare and maintenance. The direct assignment of an inheritance to a person born with disabilities or who was disabled by an accident or disease could likely interfere with government benefits. Generally, someone cannot possess over $2,000 to qualify for Supplemental Security Income. Special needs trusts supply solutions to this problem.
When people in Georgia make plans for their assets, trusts are an important tool that can help them plan for the future while providing ongoing income and benefits. The ongoing increase in interest rates, however, could cause people to make some changes in how they determine what kind of trusts to use. For the past 10 years, low interest rates have been a constant, and now that rates are rising, planning advice about trusts can also make a change.