How to Capitalize Your Wealth IN YOUR LIVING TRUST

by Jill Ciccarelli Rapps, CFP®
Financial Advisor

As you move through life, it’s important that you take the right steps to ensure your financial future and the future of your loved ones. That’s why it is important to consider capitalizing the benefits of a living trust. It could be the right call for you and for your family, and it’s something that deserves a closer look.

Of course, just as with anything else, it’s important to begin by fully understanding the basics behind the process of doing so – not to mention why it’s worth thinking about.

WHAT IS A LIVING TRUST?

• A living trust is a popular estate planning tool that lets you (1) retain control over the trust property while you are alive, (2) avoid guardianship in case you become incapacitated and can no longer handle your own financial affairs, and (3) pass trust property outside of probate when you die.
• Legally, a living trust is a separate entity that you create while you are living to “own” property, such as a house, boat, jewelry, or mutual funds. The trust is revocable, which means that you can make changes to it, or even end it, at any time.

SO WHY SET ONE UP?

There are several reasons that setting up a trust is something well worth taking the time to do. Some of these include:

• Peace of mind for you knowing that your loved ones will receive their legacy without the interference of the courts after your death. This is especially important if you are passing on ownership of a business. Estimates suggest that about 3-5% of the value of your property may be spent on lawyer fees and court costs. That’s money and time that may be wasted for your loved ones, and a living trust allows you to avoid that.
• The ability to better plan for your future and your family’s future if you are unable to manage your assets during your lifetime.
• The possibility to protect your children from litigation or divorce by having them inherit their legacy via trust.

WHAT ARE SOME KEY STEPS TO TAKE?

You’ve likely gone through your life making smart decisions – especially if you’ve reached the point where you’re planning on a living trust. For a living trust, there are a few key steps you’ll need to take:

• Create the trust. This can be drawn up with the help of an attorney and your financial advisor. Because it is likely that your financial advisor knows so much about you and your family, they can assist you in bridging what is most important to you with your legal documents that your attorney will draft.
• Many people forget to put assets in their trust and the benefits of the trust are not realized. There are some assets, because of other lifetime benefits, that should not be owned by your trust. This is an important area to work closely with your financial advisor and attorney so they can help you to properly “fund” your trust.
• Prepare your loved ones. This is often overlooked, but it’s incredibly important. You need to ensure that your heirs are ready for the responsibilities that come with their inheritance. You’ll want to ensure that they understand the basics of asset transition, what to do afterwards, and more. Sometimes, updating your estate planning documents is a great excuse to have a family meeting to educate your heirs about your desires.

Simply put, a living trust is a wise move that could help you capitalize your wealth for yourself and your loved ones. If you are wondering how to get started, contact Ciccarelli Advisory Services,
Inc. today.

Jill Ciccarelli Rapps, CFP®
www.CASMoneyMatters.com
Ciccarelli Advisory Services, Inc. is located at 9601
Tamiami Trail North, Naples, FL (239.262.6577)
Jill Ciccarelli Rapps, is a certified financial planner and a trained
life coach and is a Partner of Ciccarelli Advisory Services Inc., a
Family Focused Wealth Management Firm in Florida and New
York.
Ciccarelli Advisory Services, Inc. is located at 9601
Tamiami Trail North, Naples, FL (239.262.6577)
Investment advisory services offered through Ciccarelli Advisory
Services, Inc., a registered investment adviser independent of FSC
Securities Corporation. Securities and additional investment advisory
services offered through FSC Securities Corporation, member
FINRA/SIPC and a registered investment adviser.