Seeking Hobbes
Recycles dryer sheets
- Joined
- Apr 1, 2011
- Messages
- 103
Recently, while speaking with my older brother, I became a little paranoid.
Somehow we got on the subject of trusts & he suggested that I should set one up in order to protect my estate. In his words, "In case you're driving along and hit the neighbor kid who's chasing a ball into the street. This way, if the parents sue, they can't go after your personal assets and clean you out."
Well, looking into trusts a little further, I learned that a simple trust is great for the smooth transition of assets following death, they do nothing to protect you from law suits or creditors while alive. For that purpose I would need to set up a IEPT or (Integrated Estate Planning Trust), which involves assigning a standby trustee overseas.
Conferring more with my brother, it seems that he chose not to go with an IEPT and opted, rather, for a simple trust with an umbrella insurance policy to cover any unforeseen circumstances.
Now, I am in a much different position than my brother, who is 10 years older, has a larger estate... a wife... kids... rental properties... etc. For me, things are much simpler... I just have myself (age 48)... a dog... a home (paid for) and a NW of approx. 4.3M.
So, I'm seeking a little advice...
- Do I even need a trust?... or would my simple will suffice?
- Would an Umbrella Insurance Policy (tacked onto to my Home & Auto policies) protect my estate?
- Would a trust be advisable solely for the assignment of a trustee, in case I am incapacitated unexpectedly?
- If a trust is advisable, does anyone have experience with an IEPT?
- Any other thoughts? Am I missing something?
Thanks!
Somehow we got on the subject of trusts & he suggested that I should set one up in order to protect my estate. In his words, "In case you're driving along and hit the neighbor kid who's chasing a ball into the street. This way, if the parents sue, they can't go after your personal assets and clean you out."
Well, looking into trusts a little further, I learned that a simple trust is great for the smooth transition of assets following death, they do nothing to protect you from law suits or creditors while alive. For that purpose I would need to set up a IEPT or (Integrated Estate Planning Trust), which involves assigning a standby trustee overseas.
Conferring more with my brother, it seems that he chose not to go with an IEPT and opted, rather, for a simple trust with an umbrella insurance policy to cover any unforeseen circumstances.
Now, I am in a much different position than my brother, who is 10 years older, has a larger estate... a wife... kids... rental properties... etc. For me, things are much simpler... I just have myself (age 48)... a dog... a home (paid for) and a NW of approx. 4.3M.
So, I'm seeking a little advice...
- Do I even need a trust?... or would my simple will suffice?
- Would an Umbrella Insurance Policy (tacked onto to my Home & Auto policies) protect my estate?
- Would a trust be advisable solely for the assignment of a trustee, in case I am incapacitated unexpectedly?
- If a trust is advisable, does anyone have experience with an IEPT?
- Any other thoughts? Am I missing something?
Thanks!