Estate Planning Basics for Baby Boomers

Baby boomers are facing difficult choices when it comes to determining the appropriate estate planning strategy. Most baby boomers first priority is a will because it is the most common estate planning tool. To the surprise of many baby boomers, the will may not be the best choice. A will is inexpensive to create, but often times, the pain of probate court is a consequence of a will. In contrasts, a Revocable Living Trust is an alternative estate planning tool for baby boomers. Unlike the will, a properly eliminated revocable living trust avoids court processes such as "probate court".

There is a common assumption that a Trust or otherwise known as a "Living Trust" or "Revocable Living Trust" is an estate planning tool for the wealthy. This stereotype is false because a living trust is simply an estate planning tool to distribute your assets upon your death to your loved ones. Thus, a Revocable Living Trust is simply a written document that is distinct and different from you similar to a Corporation. This Trust Agreement or otherwise known as "Declaration of Trust" is a written guideline for how you want your estate to be distributed upon your death. A Living Trust differs with a will because it is alive and well and anticipated to be effective while you are alive. For example, your living trust becomes effective as soon as you fund it and is a great estate planning strategy in case of an incapacity. Thus, your assets will be managed by a trustee that you chose if you become disabled and incapacitated. Typically, this provision is only applicable if you cannot make financial decisions for yourself. A Living Trust works in combination with a Power of Attorney for Property and Healthcare. The purpose of a will is to distribute your assets upon your death. Hence, the Living Trust is a powerful tool and one that creates contingencies for tax planning and creating different outcomes depending on your preference. For instance, a Living Trust can set up a special trust for your children if they are special needs or have a spending or drug problem. Many parents face shame because they are not proud of all of their children and need to plan their estates in a manner to protect their children from themselves. Special attention also should be paid to protect children from fighting with one another over money. You should see a qualified estate planninng attorney for specific directions on your Trust documents.

Sean Robertson is an estate planning and wealth preservation lawyer based in downtown Chicago. Sean Robertson is Managing Partner of Robertson Law Group, LLC. Sean has extensive experience in representing seniors, retirees, and baby boomers with regards to their estate and wealth goals. Sean Robertson may be reached at (312)-954-7102. Our website is www.RobertsonLawGroup.com.


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