BERYS LAW | Business, Real Estate, Wills/Trusts

A Spousal Lifetime Access Trust (SLAT) is an advanced estate planning tool designed to reduce estate taxes, provide asset protection, and allow for wealth transfer while retaining indirect access to trust assets. This trust is particularly appealing for high-net-worth individuals who want to take advantage of the lifetime gift tax exemption while maintaining some level of control over the gifted assets.

Key Features of a SLAT

Irrevocable Trust

A SLAT is an irrevocable trust, meaning once it is established, the grantor (the person creating the trust) relinquishes control over the assets transferred to it. This characteristic ensures that the trust assets are excluded from the grantor's taxable estate.

Beneficiary Spouse

The grantor's spouse is named as the primary beneficiary of the SLAT. This allows the spouse to access trust distributions for their needs, indirectly benefiting the grantor during the spouse's lifetime.

Wealth Transfer

While the trust benefits the spouse, it is o...

A pet trust is a legally binding arrangement that ensures the care and well-being of your beloved pets in the event of your death or incapacity. It is a tool for pet owners who want to provide for their animals, guaranteeing they are looked after according to specific instructions and funded with adequate resources.

Many pet owners consider their animals family members, but pets are treated as property under the law. Without formal arrangements, your furry, feathered, or scaly companions could face uncertain futures. A pet trust offers peace of mind by creating a structured plan for their continued care.

How Does a Pet Trust Work?

A pet trust operates like other trusts. It involves three main components:

Grantor: The pet owner who establishes the trust and funds it.

Trustee: The person or entity responsible for managing the trust and ensuring the funds are used as intended.

Beneficiary: The pet(s) who will benefit from the trust.

When creating a pet trust, you outline detailed i...

The holidays bring families together, providing a rare opportunity for meaningful conversations. While festive gatherings are often associated with joy and celebration, they can also serve as the perfect time to address important matters—like your estate plan. Though it may seem like a serious topic for the holidays, discussing your estate plan during this time can ensure your loved ones are informed and prepared for the future.

Family Gatherings Allow for Open Communication

One of the most significant challenges in estate planning is ensuring everyone is on the same page. The holidays often bring family members together, creating a natural setting for open discussions. With many loved ones in the same room, it’s easier to address your plans, answer questions, and clarify your intentions.

Open communication can help prevent misunderstandings and disputes later. For example, explaining why certain decisions were made—such as designating an executor or allocating specific assets—can r...

Creating an estate plan might not seem urgent, but failing to have one can create significant complications for your family. An estate plan ensures that your assets, healthcare decisions, and personal wishes are honored after your death or if you become incapacitated. Without it, the state takes control, often leading to financial and emotional burdens for your loved ones.

Loss of Control Over Your Assets

When you pass away without an estate plan, your estate is considered "intestate." In this scenario, the distribution of your assets is determined by state law rather than your personal wishes. These laws vary but typically prioritize close relatives, such as spouses, children, or parents. While this may align with your desires, it leaves no room for nuance—such as providing for non-relatives, charities, or friends.

For instance, if you’re unmarried but in a long-term relationship, your partner may not inherit anything without explicit legal documentation. Similarly, minor children ...

Estate planning is an essential process for ensuring that your assets are distributed according to your wishes after your passing. However, without proper planning, a significant portion of your estate may be consumed by taxes. Estate taxes can reduce the amount of wealth passed on to your heirs, potentially limiting their financial security. Minimizing taxes in your estate plan requires a careful combination of strategies, but with the right approach, you can preserve more of your assets for your loved ones and beneficiaries.

1. Understand the Types of Taxes

Before diving into strategies, it’s important to understand the different taxes that can affect your estate:

Estate Tax: The federal estate tax applies to estates exceeding a certain threshold (in 2024, the exemption is $12.92 million). Any amount above this threshold is subject to taxation, with rates as high as 40%.

State Estate and Inheritance Taxes: Some states impose their own estate or inheritance taxes, which may have l...

Creating a will is a crucial step in ensuring that your assets are distributed according to your wishes after your death. However, for parents, it's not just about dividing up property—it's about ensuring that their children’s inheritance is protected and well-managed, particularly if the children are young or there are specific circumstances to consider. Here's a guide to structuring your will to protect your children's inheritance.

1. Appoint a Guardian for Minor Children

If you have minor children, one of the most important elements of your will is to name a guardian who will take care of them if both parents pass away. The guardian you choose will be responsible for their upbringing, including decisions about their education, health, and overall welfare. Selecting a guardian is a personal decision, and it’s essential to choose someone who shares your values and will care for your children as you would.

Read more: What Is Guardianship Planning? - A Comprehensive Guide to Protecti...

Estate planning is a critical component of managing your assets and ensuring that your wishes are carried out after your death. Among the various tools available, a revocable living trust is often highlighted as a flexible and effective option. But is it right for you? Understanding the benefits and limitations of a revocable living trust can help you make an informed decision.

What is a Revocable Living Trust?

A revocable living trust is a legal document that allows you to place your assets into a trust while retaining control over them during your lifetime. You can alter or dissolve the trust at any time, hence the term “revocable.” Upon your death, the trust assets are distributed according to the terms you’ve set forth, without the need for probate.

Benefits of a Revocable Living Trust

Avoiding Probate

One of the primary advantages of a revocable living trust is that it helps avoid the probate process. Probate is the legal procedure through which a deceased person’s estate is ...

Estate planning is an essential part of ensuring that your assets are managed and distributed according to your wishes after your death. While many people create an estate plan and feel that their work is done, life changes and evolving circumstances mean that regular reviews of your plan are crucial. Certain major life events should prompt a review to ensure your estate plan remains accurate, up-to-date, and reflective of your current situation.

Here are some of the most significant life events that should prompt a review of your estate plan:

1. Marriage or Divorce

One of the most common life changes that should trigger a review of your estate plan is marriage or divorce. Marriage often means adding a spouse to your estate plan, including them as a beneficiary, or assigning them powers in roles like executor or guardian. Similarly, divorce may necessitate the removal of your former spouse from these positions, particularly if they were previously listed as a beneficiary.

If you fa...

Becoming a new parent is a life-changing experience that brings a host of new responsibilities, one of which is ensuring the financial security of your child through proper estate planning. Estate planning might seem overwhelming, especially when you are adjusting to the demands of parenthood, but taking the time to plan your estate can provide peace of mind and ensure that your child is cared for in the event of your passing. Here’s a guide to help you get started on estate planning as a new parent.

1. Draft a Will

The first step in estate planning as a new parent is drafting a will. A will is a legal document that outlines how you would like your assets to be distributed after your death. More importantly, as a new parent, a will allows you to name a guardian for your child. This is crucial because if both parents pass away, the court will look to your will to determine who should take care of your child. When choosing a guardian, consider someone who shares your values, has the ca...

Nowadays, individuals are seeking more ways to protect their personal and financial information. One powerful tool for achieving this is a living trust.

A living trust not only helps manage your assets during your lifetime and facilitates the transfer of your estate upon death, but it also offers significant privacy benefits.

Understanding how a living trust preserves your privacy can help you make an informed decision about your estate planning.

1. Avoidance of Probate

One of the primary ways a living trust preserves your privacy is by avoiding the probate process. Probate is a court-supervised procedure that validates a will and oversees the distribution of an estate. This process is public, meaning that details about the deceased’s assets, debts, and beneficiaries become part of the public record. Anyone can access this information, which can lead to unwanted attention or potential scams.

In contrast, a living trust operates outside of probate. When you create a living trust,...