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Different Types of Trusts

Keeping finances in order is an essential part of life. When the time comes when an individual or family needs to think about planning their estate, setting up a trust account may come up. There are a variety of trusts one can sign up for, and there are four common types that most may consider. 

What Is a Trust?

The basic description of a trust is an arrangement is made to allow a third party, also known as the trustee, to hold onto certain assets as a favor to the beneficiary or beneficiaries. They are primarily used in estate planning to transfer the assets to the beneficiaries easily. A trust is similar to a will, and most of the time, the beneficiaries are a spouse, children, or other family members. Sometimes it is even a close friend or a charity depending on the situation. These beneficiaries will receive the assets to the trust based on how the trustee is directed to distribute them.

Living and Testamentary Trust

Every trust account must be selected and set up by the trustor. Some situations will call for an Advisor Directed Trust if the assets are considerable. But the two common trusts are the living and testamentary trusts.

The living trust can also be called an inter vivos trust and is created while the person is still alive. One of the most common purposes of this trust is so the trust's assets can be effortlessly transferred to the beneficiaries. It can accomplish this by avoiding probate, saving time and court fees, and reducing the estate taxes for the beneficiaries.

A testamentary trust is set up after death and is influenced by what is said in the last will and testament. The terms of this trust can be changed at any time up until death and can be a more straightforward process with more flexibility than a living trust. The main objective is to ensure that the beneficiaries can only acquire certain assets at a prearranged time.

Revocable and Irrevocable Trust

A revocable trust is also known as a revocable living trust, and it allows the trustor to keep control of their assets during their entire lifetime. They can change the trust or even dissolve it if they deem it necessary. These types of trusts offer flexibility because they can transfer their assets and switch their guidelines for handling said assets during their lives.

On the other side, an irrevocable trust cannot be changed or modified once established. Therefore, if a transfer of assets occurs to a trust, it can no longer be changed or undone. This gives the trustor less flexibility and asks why someone would choose this trust? The main reason someone may choose this trust is that they benefit from a safeguard. Their assets are safe and protected from claims of creditors or beneficiaries. It also can remove certain assets from the estate, making them exempt from estate and gift tax.

When planning an estate, a trust can significantly benefit the trustor. And depending on the assets, choosing the right trust is crucial.

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Types of Insurance You Should Buy

Life can take a turn you were less than prepared for. When you get sick or have something happen to your house or car, it can leave you in a great deal of debt. Insurance can handle these costs for you or make the payment of them more manageable for your family. Here are a few types you should consider purchasing. 


Car Insurance

Auto insurance is required by many states when you are behind the wheel at any time. This will protect you, your passengers, and your assets if you are ever in a car accident. It will also cover your automobile if it is stolen or if it is damaged by vandalism or weather. There are various types of plans that you can purchase depending on the age of your vehicle, whether you have a loan on it with the bank, and if your area requires certain coverages such as personal injury protection. 

The amount you will pay a month can fluctuate depending on your age, the members of your family, and the type of car you drive. Contact several agencies near you to ask for a quote then select the one that works in your budget and has the coverage that you need. Once you have your insurance card from your agent, place it somewhere safe in your vehicle like your glove compartment so that it is easily accessible when you need to get to it. 


Home Insurance

Whether you own your place or rent it, you need to purchase homeowner or renter’s insurance. If you lease an apartment, it can be a requirement to live there. This policy will repair your house and the items inside it if they are damaged by weather, a fire, a broken pipe inside the structure, or any malfunction that can cause problems for you. It will replace your possessions if they are stolen.  It will also take care of the expenses for someone who is injured on your property. 

If you live in an area where certain acts of nature can destroy buildings, such as floods or hurricanes, you can invest in additional plans along with your home insurance to protect you from these events. 


Health Insurance

Medical expenses can become expensive very quickly. Health insurance can absorb most of that cost in the event you or someone in your family falls sick or gets injured and must seek the care of a doctor or be admitted into the hospital. There is usually a deductible you must pay on the bill then your coverage will take care of the rest. 

Many policies will also offer dental and vision to you as well. Ask your employer if they offer health insurance to you and what you must do to qualify for it. There are many programs that can help you get low-cost medical coverage. Be aware of what your deductible is before you see the doctor and check to see if your policy covers any pre-existing conditions that you had before you signed up for it. 

 

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One Small Fee With Jenny Life Can Help Ease Your Stress

This is a sponsored post with Jenny Life Insurance and BraVoMark. All opinions are my own.

Do you ever sit around and think about special family memories, or even future grandchildren? Our home is filled with beautiful photos or mementos that remind us of some of the most fun times, and big celebrations together. It also gets me to thinking about what will happen if I were to suddenly die. I know this isn't a fun conversation to have, but it's very necessary. I mean, my youngest child is only 10 and still has a way to go before he becomes a self-sufficient adult. He still has to graduate high school, and go to college.

I try not to be overly obsessed with leaving my family behind, but it's so important to know that they won't have to worry about money. You may have read some of my previous posts about Jenny Life Insurance. It is a convenient way to get life insurance with ease from the Jenny Life app, on either Apple or Android devices. Visit this post to see how you can get started.

The cost benefit of a small monthly fee to save your family from years of potential finance stress.

Do you have any idea of what it costs to take care of everything when a loved one passes away? Look at some of these findings from Jenny Life...

  • Americans die with an average debt of $62,000. source 
  • A funeral runs between $7,000 to $10,000. 
  • Parents paid an average of $15,895 for full-time infant care.
  • According to salary.com, a stay-at-home mom's medium average salary would be $143,102 if you calculated costs. source
All of this is overwhelming when you think about it. What will surprise you is that life insurance isn't as expensive as you might think. One small fee every month will give you the peace of mind you should have in regards to your family. Knowing that your family isn't stuck with a financial burden after your death is priceless! 


If you don't have life insurance, we suggest you check out Jenny Life for yourself. Visit Jenny Life online for more information. You can also find them on Facebook & Twitter.
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Tips To Make Sure You Don't Leave Your Family With The Burden Of Death Bills

This is a sponsored post with Jenny Life Insurance and BraVoMark. All opinions are my own.

One of the subjects that many of us avoid discussing is death. Talking about what happens if you were to suddenly pass away isn't the most pleasant kitchen table conversation, but it's actually quite necessary. Today we are sharing some simple tips to ensure that you do not leave a financial burden behind for your family to carry.

Have A Will In Place

It is essential to have a formal will put together in the event of your death. It doesn't matter if you don't own a lot of material items or assets. It still helps your loved ones know what to do with the things you leave behind. We have even the littlest things listed in our wills to go to a designated person or charity. Having a will gives your family a road map on how to close out your final wishes. You can purchase a kit from your local office supply kit, or go through a family attorney who offers this service. It costs a couple hundred dollars or so. Make sure you update it once a year since you can easily accumulate more items of money each year.

Keep Your Documents In A Safe Place

We recommend a fireproof safe to keep all insurance papers, social security info, stocks/bonds, photographs, and any proof of assets. Don't forget to give your family members information on where you keep the keys to the safe, or any passwords associated with accessing documents. Keeping all of your important documents in one central location makes things so much easier for your loved ones to find.

Make Sure You Have Enough Life Insurance

Death can happen at any time. We have no guarantee that we will live to be 100. Having ample life insurance eases the financial burden that might be left behind for your children, spouse or loved ones to handle. The bills don't stop coming even after you pass away. Making sure your loved ones have enough money to cover the cost of your funeral expenses, outstanding bills, mortgages, and even college tuition for your children is so important. We have witnessed firsthand the panic and struggle when a loved one dies, and you are left to figure it all out.

Jenny Life Insurance offers a quick and easy way to get affordable coverage with the simplicity of an app. You can download the app for your iPhone or Android device. All you need to get a quote is your birth-date, state you live in, and your gender. A little slider pops up for you to adjust it to a monthly payment you are comfortable with. Check out my previous post for more details.

You're never too young to start planning for the unknown. Be sure to visit Jenny Life online for more information. You can also find them on Facebook and Twitter.
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Get Life Insurance Coverage Fast With Jenny Life

This is a sponsored post with Jenny Life Insurance and BraVoMark. All opinions are my own.

I can remember just like it was yesterday when my husband and I applied for life insurance 2 decades ago. It was quite a big ordeal. We had to make an appointment with a life insurance agent and a nurse to visit our home. There was so much involved like filling out tons of paperwork, being interviewed, weighed, having to give blood/urine samples, and more. I can't imagine anyone having time to do all of that these days.

Now there is a great solution, especially for busy moms. Jenny Life Insurance makes getting affordable life insurance fast with the use of a simple app. Boy have times changed! Gone are the days of medical exams, and you can have coverage in a matter of minutes. Knowing that your family is protected in the event something happens to you is priceless.

I can't believe how simple is it to get Jenny Life Insurance. You can download the app for your iPhone or Android device. All you need to get a quote is your birth-date, state you live in, and your gender. A little slider pops up for you to adjust it to a monthly payment you are comfortable with.

Coverage starts at 10k and goes up to 300k. Once you have selected your coverage amount, you are then taken to the screens to complete your application process. It is that simple! If you do not have life insurance and you are a parent, you should not wait. It's so easy to spend $15 on a lunch out with a friend, or $25 on some new cute coffee mugs that you probably don't need anyway. You don't want to leave a hefty financial burden on your kids when you die. Give yourself and your family some peace of mind and get life insurance right away. What are you waiting for? Download the Jenny Life Insurance app today.

 from JennyLife on Vimeo.

“Moms can’t live carefree. Your whole life is built around caring. We’re making it easier for you to care.”  —Chirag, Founder

Be sure to visit Jenny Life online for more information. You can also find them on Facebook & Twitter.
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Helping an elderly family member in their later years

Caring for elderly relatives and ensuring they spend their days in a dignified manner is important. Talk with your family members to discuss their wishes for their end of life care and funeral preparations. As difficult as it is to have these conversations, it is well worth it to have everything planned as early as possible to get their input while they are able. Planning will ease the burden on family and friends when the time comes.

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A home for family members
Many families have an elderly family member to care for during their later years, and need to get educated on how to care for the elderly at home. Typically, the younger relatives of the elderly person help care for them or help them plan their care. If the family is large, with many children or grandchildren of the elderly family member, there might be a need for conversations about palliative care and who will be the primary caretaker or point of contact for their care.

Some families wish to have their family member live with them. Depending on their needs, this might require one adult to stay at home around the clock. If you plan to do this, learn as much as possible about their illness or disability before making the commitment to care for them long-term. It could be that you hire additional help from a professional care team, to help support and care for your loved one at home and perhaps offer a little respite for you and your family members. If this is the case, it is imperative that accurate care notes are taken so that all caregivers can pass on details of the care given, progress made, and medications administered. Remember to encourage their independence while caring for them. Seek out devices and technology to allow them as much independence as possible.

While caring for your family member, limit yourself to only things you feel qualified to do and always ask a doctor’s advice when needed. It is understandable to ask a family member or healthcare professional for help. There will likely be times when you feel overwhelmed. Take time to yourself and seek counseling or join support groups to connect with others caring for a family member. Consider home health aides or adult day care for seniors to take a break. Keep in mind that some employers in certain states provide family leave programs. These leave programs usually allow several weeks of leave time from your job per year.

Another option is to consider a care home that meets the needs of your family member. There are care homes designed to look after those who need around the clock care, such as people with Alzheimer’s, and there are care homes similar to apartment homes that provide on-site medical assistance. Care homes can provide socialization for your family member while allowing you to focus on your own needs and existing obligations, like work and children. You and your family member will need to decide how to pay for their care. This might involve selling their home or reducing your inheritance.
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Financial planning
The financial future of your family member and making their will are things that should be discussed as early as possible so there is no question about their wishes later. Have a conversation with your family member and make sure they have a will. It is important to have their assets clearly allocated.

Meet with your family member’s financial planner or set up a meeting with one to discuss your questions. Consider their care, guardianship, property, assets, and estate planning including wills and trusts. Take into account their debt, income, expenses, and benefits. The last thing you want is to not have their debt under control and allocated appropriately. If you need some beginner guidance, Creditful.com is a great resource to start. Financial planners and lawyers are well versed in their area of expertise, so they can help your loved-one determine how to manage their finances for end of life and their estate.

End of life plans
Talking about end of life for your elderly family member might be difficult for you, your family, and for them. Plan to avoid feeling rushed and stressed when making plans during a time of grief at the end of their life. Discuss how they want to handle their end of life care and funeral preparations. Talk with them to determine whether they would like a casket burial or cremation services. Plan a time when they are able to meet with a provider, like Dallas funeral services, to discuss all of their options.

A burial with a casket funeral can offer many fine details, while cremation provides a dignified and affordable option. Loved ones might like an open casket funeral. Others might prefer cremation and a ceremony scattering the ashes at a memorable location. Either option allows for a respectful service. The loved ones left behind should also have important documents such as transfer of death deeds, documents for an obituary, and other certificates needed at hand.

Caring for your elderly family members is personal and involves many different aspects to consider. Planning for the future is never emotionally easy, but the benefits to planning early outweigh the emotional toll that comes with waiting until the end of life. Gather your family and have conversations about the future. Preface the conversation by expressing that these discussions come from a place of love and caring.
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