Financial Power Blog — Estate Planning
What is a Revocable Living Trust?
A Revocable Living Trust is a legal agreement that outlines how you want your assets to be allocated upon your passing. It is also known as a "inter vivos" trust since it was established while you were still alive and able to amend it at any point while you are still alive. Many different kinds of families can benefit from revocable living trusts. Some individuals use them to start a new family estate, while others prefer to divide their assets among their children or adult children in separate estates. Others utilize them when a kid experiences an emergency financial...
The Beneficiary Form Trumps All Other Documents
In a ruling on January 26, 2009, on Plan Beneficiary Form in the case of Kennedy vs. Dupont Savings and Investment Plan, the U.S. Supreme Court unanimously ruled that William Kennedy's ex-spouse would receive his $402,000 retirement plan because she was the named beneficiary. Mr. Kennedy died in 2001. Under the divorce decree of 1994, his ex-spouse waived her rights to any benefits from his retirement plan. Mr. Kennedy wanted the proceeds to be paid to his daughter. So what could go wrong? Simple, Mr. Kennedy failed to change the beneficiary form. Mr. Kennedy believed because his ex spouse...