Wealth From Wisdom MAY 2018

3 Things to Do Before the Trip TravelingWith the Grandkids?

that you are an irresponsible grandparent. Instead, think about how you felt when your own children were young, and take steps to alleviate the parents’ concerns. If your daughter asks you not to be on your phone while in crowded public places because she’s concerned you might lose sight of her child, promise to keep the phone in your pocket. If your son-in-law wants regular updates, make time before bed for your grandchild to call home and tell her father about all the fun she’s having. A little compromise can lead to less stress and more fun for everyone. Pack Necessary Documents You need to have some form of ID for your grandkids. Older kids can use a driver’s license, but if you’re traveling with little ones, find a copy of their birth certificates. You also need copies of insurance and prescription cards and a notarized letter from the parents granting you permission to authorize medical care in case of an emergency. It’s also a good idea to have This category of trust can also be used as a method of transferring assets upon death, much like a will. However, unlike a will, trusts are not subject to the court- supervised probate process. In many states, the probate process is slow and expensive, and it can open up your estate to public scrutiny. Upon death, your wishes are final, and at this point, the trust becomes irrevocable. Irrevocable Trusts Generally speaking, an irrevocable trust cannot be modified or terminated without explicit court approval — neither while you are living nor after death. An irrevocable trust is a separate legal entity from its “creator.”

a letter of permission for your grandkids to travel with you. Make sure the letter is signed by all legal guardians, especially if your grandchild’s parents are divorced. You don’t want to accidentally cause a custody dispute. Plan a Trip You’ll Both Love When planning your itinerary, ask yourself if your grandkids will have fun, too. You might be excited to visit an art museum, but a younger child might not appreciate it as much. This doesn’t mean you shouldn’t visit museums or historical sites! In fact, most of these places offer kid-centric activities, like scavenger hunts, that can help a younger audience engage with the environment. Just be sure to think of your grandchild first when planning. There’s nothing like the adventure of travel to bring generations closer together and create lasting memories. These tips will help you ensure those memories are good ones. Happy travels! While the concepts surrounding an irrevocable trust sound stringent, this category of trust does allow for considerable flexibility. Irrevocable trusts set up before death can be used to hold life insurance policies, gifts to be made available to beneficiaries on future dates (specified by you), or funds set aside for future charitable donations. Beneficiaries pay taxes on what they receive from an irrevocable trust. Next month, we will look at the specific types of trusts that can fall into either of these two categories. There are a number of types of trusts that can be paired with different rules and allow their creators to meet specific objectives. In the meantime, call Cornerstone Wealth at 866-485-8505 with any questions you have about creating trusts.

W e could all use a vacation, and if you’re looking to bond with your grandkids, a trip might be the perfect answer. It’s fun for you, and getting away from Mom and Dad for a while is thrilling for any kid. But before you board a plane to Italy with your granddaughter or rent an RV for a trip to Yellowstone with your grandsons, there are a few things you need to check off your to-do list. Don’t Let the Parents Worry Letting their kids go on a trip without them can be nerve-wracking for parents. Don’t view parental worries as an implication

REVOCABLE & IRREVOCABLE TRUSTS Be Aware of These Differences

Trusts can be incredibly beneficial for families. They protect assets and help manage said assets in both life and death. But not all trusts are the same. They fall into two categories: revocable and irrevocable. Revocable Trusts A revocable trust, also known as a living trust, lets you modify it during your lifetime. If you wish, you can even terminate the trust. Fundamentally, you are in control of this trust, and earnings generated by any assets held in this trust are reflected on your income-tax returns. Additionally, you can manage the assets in the trust yourself, or you can hire a financial advisor to manage the assets according to your provisions, with you serving in a supervisory role.

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