Hey there Wine and Dime listener!

Are you ready to dive into the world of estate planning with me? In this episode, we're going to talk about trusts - and trust me, it's not as complicated as you might think!

First, I'll give you an overview of the different types of trusts, including testamentary trusts, living trusts, and irrevocable trusts. We'll also dive into specific types of irrevocable trusts, like irrevocable life insurance trusts and charitable remainder trusts. Don't worry, I'll make sure you understand all the parties involved in a trust, including the grantor, beneficiary, and trustee.

One thing that I find super important is having a pour-over provision will to account for any assets accidentally left out of the trust. As a trustee, it's crucial to know about this provision and how it works - trust me on this one!

There are so many reasons for forming a trust, like blended households, clear asset distribution, privacy of asset distribution, and asset protection. And if you want to learn more, you can always check out the resources on the Rooted Planning Group website.

As always, don't forget to rate and subscribe to the show. And a big shoutout to T.J. Meehan, who helps with production. If you have any questions or want to learn more, you can contact me through the Rooted Planning Group website or follow us on social media.

In my opinion, estate planning is not just for the wealthy. It's for anyone who wants to make sure their assets are distributed according to their wishes. So, let's get started on securing our future by playing this episode now.

What You'll Learn:

The types and purpose of various trusts, including Testamentary Trusts, Living Trusts, and Irrevocable Trusts.
The parties involved in a trust: The Grantor, The Beneficiary, and The Trustee.
The role of an executor in the trust process.
The various scenarios where forming a trust could be beneficial.
The nuances of estate planning with blended families.

Summary of Discussion:

In this fruitful discussion, Amy Irvine, founder of Rooted Planning Group, takes a deep dive into estate planning with a focus on trusts. Trusts are vital tools in estate planning that ensure your assets are handled according to your wishes. The episode uncovers the different types of trusts, including Testamentary, Living, and Irrevocable Trusts, each serving unique purposes.

Amy also explains the roles of the three key players in a trust: The Grantor (who creates and funds the trust), the Beneficiary (who ultimately receives the proceeds from the trust), and the Trustee (who has a fiduciary responsibility to manage the trust).

Amy touches on the vital role of an executor who works closely with the trustee to ensure a smooth asset transfer. This episode also explores situations where forming a trust could be particularly beneficial, including blended households, probate reduction, privacy of asset distribution, and asset protection.

Winery Recommendation:

Get your corkscrews ready because this episode's wine recommendation is Bricoleur Vineyards, a French winery in beautiful Sonoma County. While Amy hasn't tasted their wines yet, she was drawn to their theme of "roots," which resonates with the spirit of the Rooted Planning Group. They have a strong focus on their vineyard's roots, reminding us of the deep-seated connections between life, finances, and good wine.

Wrapping Up:

This episode is a must-listen for anyone looking to take a deeper understanding of trusts and estate planning. As always, Amy encourages listeners to refer to additional resources available on rootedpg.com. Don't forget to share this episode with friends, rate it on iTunes, and prepare for the next episode. Now, raise a glass to smart financial planning and exceptional wine!

Remember, this is not legal advice. If you're looking for legal advice on estate planning, please consult an estate planning attorney or an elder law attorney who specializes in this topic.

FAQ

Q1. What is estate planning?

Estate planning is the preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death. Learn more about it in Episode 1 of our series.

Q2. What is a Trust in estate planning?

A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries.

Q3. What types of Trusts are there?

There are several types of trusts including testamentary trusts, living (or revocable) trusts, and irrevocable trusts. Each has unique features and benefits. You can listen to Amy's deep dive into each one in this episode.

Q4. What are the roles involved in a Trust?

There are three main roles involved in a trust: The grantor (who creates and funds the trust), the beneficiary (who receives proceeds from the trust), and the trustee (who has a fiduciary responsibility to follow the trust language and act in the best interest of both the grantor and beneficiary).

Q5. Why would I want a Trust in my estate plan?

Trusts are often used in estate planning to achieve a variety of objectives including privacy of asset distribution, potential reduction of probate, and protection of assets, especially in cases of blended families.

Q6. Can I change the terms of my Trust?

It depends on the type of trust. Revocable (or living) trusts can be altered or even revoked entirely by the grantor, while irrevocable trusts, once established, cannot be changed.

Q7. What is an ILIT and how does it work?

An Irrevocable Life Insurance Trust (ILIT) is a trust that is set up to own a life insurance policy. This can be a beneficial strategy for reducing estate taxes. Find more information here.

Q8. What's a Charitable Remainder Trust?

A Charitable Remainder Trust is an irrevocable trust that generates a potential income stream for you, or other beneficiaries, with the remainder of the donated assets going to your favorite charity or charities. Find more information here.

Q9. What are the resources for more information?

You can find further resources and information on our website.

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.