Fri. Mar 29th, 2024

Why You Should Avoid Leaving Money to Your Children: Insights from an Asset Protection Attorney<!-- wp:html --><div></div> <p><a href="https://whatsnew2day.com/">WhatsNew2Day - Latest News And Breaking Headlines</a></p> <div> <p class="mol-para-with-font">An asset protection attorney has revealed the 6 things you’ll never do when it comes to estate planning — and the one thing you should do to protect your heirs. </p> <p class="mol-para-with-font">California-based Brittany Cohen has more than 126k followers on TikTok, where she shares her<a target="_blank" class="class" href="https://www.tiktok.com/@brittanycohen_attorney/video/7220834731963796778" rel="noopener"> Informational videos</a> About money management, wills and trusts. </p> <p class="mol-para-with-font">It recently went viral after showing how parents can save their children from money woes by establishing living credit and having them as trustees. </p> <p class="mol-para-with-font">She said, “I will not leave anything to my children when I die.” “Instead, I will leave everything to a trust where my children are named as the beneficiaries.”</p> <div class="artSplitter mol-img-group"> <div class="mol-img"> <div class="image-wrap"> </div> </div> <p class="imageCaption">Brittany Cohen goes viral on TikTok after revealing the 6 things she would never do as an asset protection attorney </p> </div> <div class="artSplitter mol-img-group"> <div class="splitLeft"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <div class="splitRight"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <p class="imageCaption">She said, “I will not leave anything to my children when I die.” “Instead, I will leave everything to a trust where my children are named as the beneficiaries.”</p> </div> <p class="mol-para-with-font">A living trust, or revocable trust, is a <a target="_blank" class="class" href="https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/revocable_trusts/" rel="noopener">A legal arrangement created during your lifetime</a> Where you, the grantor, appoint a trustee to protect your assets and direct their distribution when you die or become incapacitated. </p> <p class="mol-para-with-font">In contrast to the will, A.J <a target="_blank" class="class" href="https://criderlaw.net/faqs/will-avoid-probate/" rel="noopener">Trust goes beyond commandments</a>This is a lengthy and expensive court-supervised process of distributing your assets after your death.</p> <p class="mol-para-with-font">For similar reasons, Cohen said she would never name her minor children as beneficiaries of her life insurance accounts. </p> <p class="mol-para-with-font">In California, where it is licensed, minor children are not allowed to receive an inheritance until they reach the age of 18. </p> <p class="mol-para-with-font">A court-appointed custodian will be named to manage the funds until the child reaches the age of 18, but this can be avoided by placing your life insurance accounts in a living trust and naming your minor children as beneficiaries. </p> <p class="mol-para-with-font">“I would never add my children’s names to my home to get around a Medicaid refund,” she continued. Instead, I would put my home in a Medicaid Asset Protection Trust and name my children as the beneficiaries of that trust. </p> <p class="mol-para-with-font">The Medicaid Asset Protection Credit is irrevocable <a target="_blank" class="class" href="https://www.sjslawpc.com/practice-areas/what-is-a-medicaid-asset-protection-trust-mapt/#:~:text=A%20Medicaid%20Asset%20Protection%20Trust%20is%20exactly%20as%20it%20sounds,long-term%20care%20is%20needed." rel="noopener">Trust designed to protect your assets from counting Medicaid eligibility</a> in the case of long-term care. </p> <p class="mol-para-with-font">Cohen also insisted that she would never add her children’s names to her bank accounts or to the deed of her primary residence in an effort to avoid the Ten Commandments court. </p> <div class="artSplitter mol-img-group"> <div class="mol-img"> <div class="image-wrap"> </div> </div> <p class="imageCaption">Unlike a will, a trust overrides a probate, which is a lengthy and expensive court-supervised process of distributing your estate after your death.</p> </div> <div class="artSplitter mol-img-group"> <div class="splitLeft"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <div class="splitRight"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <p class="imageCaption">For similar reasons, Cohen said she would never name her minor children as beneficiaries of her life insurance accounts because in many states they are not allowed to receive an inheritance until they reach the age of 18.</p> </div> <p class="mol-para-with-font">“If you add your child’s name to your estate at some point during your life, the first thing that might happen is a property tax reassessment,” she explained in a letter. <a target="_blank" class="class" href="https://www.tiktok.com/@brittanycohen_attorney/video/7158527546387090731" rel="noopener">previous section</a>. “If your property is appreciating…you may need to pay more property taxes.”</p> <p class="mol-para-with-font">The second reason is that it overrides the basic staging option, <a target="_blank" class="class" href="https://www.investopedia.com/terms/s/stepupinbasis.asp" rel="noopener">A provision that adjusts the cost basis of the inherited asset</a> At its fair market value at the date of the deceased’s death. </p> <p class="mol-para-with-font"><span>“You would have made them pay more capital gains taxes than they would have needed to if they had inherited that property at your death,” she said. </span></p> <p class="mol-para-with-font"><span>Cohen stressed that the number one reason for creating a living trust for your heirs is to avoid a bequest.</span></p> <p class="mol-para-with-font"><span>She made it clear at the end of her video that she would never allow her children to go to probate court and “spend”</span> Unnecessary time, effort, money and going to court to own the assets I want them to inherit.</p> <p class="mol-para-with-font">“Confidence is for the middle class too,” she added in the caption to her video, which has been viewed more than 1.2 million times and received nearly 2,000 comments.</p> <p class="mol-para-with-font">The main takeaway was that people should establish a trust for their loved ones. </p> <div class="artSplitter mol-img-group"> <div class="splitLeft"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <div class="splitRight"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <p class="imageCaption">Instead of trying to get around a Medicaid recovery by adding her children’s names to her home, she would put her home in a Medicaid Asset Protection Trust. </p> </div> <div class="artSplitter mol-img-group"> <div class="mol-img"> <div class="image-wrap"> </div> </div> <p class="imageCaption">Cohen also insisted that she would never add her children’s names to her bank accounts or to the deed of her primary residence in an effort to avoid the Ten Commandments court.</p> </div> <div class="artSplitter mol-img-group"> <div class="splitLeft"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <div class="splitRight"> <div class="mol-img"> <div class="image-wrap"> </div> </div> </div> <p class="imageCaption">The main reasons to avoid putting your children’s name on your primary home deed, Cohen said, are potential increases in property taxes and a missed opportunity to reduce capital gains taxes. </p> </div> <p class="mol-para-with-font">“Summary: get confident lol,” one person wrote. </p> <p class="mol-para-with-font">Another joked: “So what you’re saying is establishing a living revocable trust.” </p> <p class="mol-para-with-font">Another person added “trust trust (check emoji).” </p> <p class="mol-para-with-font">A number of people have been concerned about the cost of establishing a living credit, but she believes that anyone with property or assets should consider owning one. </p> <p class="mol-para-with-font"><span>She said in <a target="_blank" class="class" href="https://www.tiktok.com/@brittanycohen_attorney/video/7212641876481019179" rel="noopener">Another video</a>. </span></p> <p class="mol-para-with-font"><span>“The reality is that generally putting a trust together is for the benefit of another person. So the question you have to ask yourself is, ‘What experience do I want the people I like to go through in order to become owners of the assets I want to transfer to them?’”</span></p> <p class="mol-para-with-font">She added, “If you really don’t care what that experience looks like for your loved ones, then maybe trust isn’t for you.” But the truth is, estate planning is for the people you love most and there’s no magic number that makes it worth it for them. </p> <p class="mol-para-with-font">“It’s about whether you want them to go to court or you want it all laid down very (easily) so they can take ownership.”</p> </div> <p><a href="https://whatsnew2day.com/why-you-should-avoid-leaving-money-to-your-children-insights-from-an-asset-protection-attorney/">Why You Should Avoid Leaving Money to Your Children: Insights from an Asset Protection Attorney</a></p><!-- /wp:html -->

WhatsNew2Day – Latest News And Breaking Headlines

An asset protection attorney has revealed the 6 things you’ll never do when it comes to estate planning — and the one thing you should do to protect your heirs.

California-based Brittany Cohen has more than 126k followers on TikTok, where she shares her Informational videos About money management, wills and trusts.

It recently went viral after showing how parents can save their children from money woes by establishing living credit and having them as trustees.

She said, “I will not leave anything to my children when I die.” “Instead, I will leave everything to a trust where my children are named as the beneficiaries.”

Brittany Cohen goes viral on TikTok after revealing the 6 things she would never do as an asset protection attorney

She said, “I will not leave anything to my children when I die.” “Instead, I will leave everything to a trust where my children are named as the beneficiaries.”

A living trust, or revocable trust, is a A legal arrangement created during your lifetime Where you, the grantor, appoint a trustee to protect your assets and direct their distribution when you die or become incapacitated.

In contrast to the will, A.J Trust goes beyond commandmentsThis is a lengthy and expensive court-supervised process of distributing your assets after your death.

For similar reasons, Cohen said she would never name her minor children as beneficiaries of her life insurance accounts.

In California, where it is licensed, minor children are not allowed to receive an inheritance until they reach the age of 18.

A court-appointed custodian will be named to manage the funds until the child reaches the age of 18, but this can be avoided by placing your life insurance accounts in a living trust and naming your minor children as beneficiaries.

“I would never add my children’s names to my home to get around a Medicaid refund,” she continued. Instead, I would put my home in a Medicaid Asset Protection Trust and name my children as the beneficiaries of that trust.

The Medicaid Asset Protection Credit is irrevocable Trust designed to protect your assets from counting Medicaid eligibility in the case of long-term care.

Cohen also insisted that she would never add her children’s names to her bank accounts or to the deed of her primary residence in an effort to avoid the Ten Commandments court.

Unlike a will, a trust overrides a probate, which is a lengthy and expensive court-supervised process of distributing your estate after your death.

For similar reasons, Cohen said she would never name her minor children as beneficiaries of her life insurance accounts because in many states they are not allowed to receive an inheritance until they reach the age of 18.

“If you add your child’s name to your estate at some point during your life, the first thing that might happen is a property tax reassessment,” she explained in a letter. previous section. “If your property is appreciating…you may need to pay more property taxes.”

The second reason is that it overrides the basic staging option, A provision that adjusts the cost basis of the inherited asset At its fair market value at the date of the deceased’s death.

“You would have made them pay more capital gains taxes than they would have needed to if they had inherited that property at your death,” she said.

Cohen stressed that the number one reason for creating a living trust for your heirs is to avoid a bequest.

She made it clear at the end of her video that she would never allow her children to go to probate court and “spend” Unnecessary time, effort, money and going to court to own the assets I want them to inherit.

“Confidence is for the middle class too,” she added in the caption to her video, which has been viewed more than 1.2 million times and received nearly 2,000 comments.

The main takeaway was that people should establish a trust for their loved ones.

Instead of trying to get around a Medicaid recovery by adding her children’s names to her home, she would put her home in a Medicaid Asset Protection Trust.

Cohen also insisted that she would never add her children’s names to her bank accounts or to the deed of her primary residence in an effort to avoid the Ten Commandments court.

The main reasons to avoid putting your children’s name on your primary home deed, Cohen said, are potential increases in property taxes and a missed opportunity to reduce capital gains taxes.

“Summary: get confident lol,” one person wrote.

Another joked: “So what you’re saying is establishing a living revocable trust.”

Another person added “trust trust (check emoji).”

A number of people have been concerned about the cost of establishing a living credit, but she believes that anyone with property or assets should consider owning one.

She said in Another video.

“The reality is that generally putting a trust together is for the benefit of another person. So the question you have to ask yourself is, ‘What experience do I want the people I like to go through in order to become owners of the assets I want to transfer to them?’”

She added, “If you really don’t care what that experience looks like for your loved ones, then maybe trust isn’t for you.” But the truth is, estate planning is for the people you love most and there’s no magic number that makes it worth it for them.

“It’s about whether you want them to go to court or you want it all laid down very (easily) so they can take ownership.”

Why You Should Avoid Leaving Money to Your Children: Insights from an Asset Protection Attorney

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