Category Archives: Finance

Finance

Living Trust Benefits and Who Should Consider Them

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Living Trust
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A resident of Newport, CA, Richard T. Howard has had a successful career as a trust management expert. In the course of his career, he has won five top sales awards from the Thomas Publishing Company, a Thomas Register based in New York City. Richard T. Howard of Newport, CA, is the owner and trustee of CDAMT, a firm he uses to advise his clients about how to utilize and benefit from trusts such as living trusts.

A living trust is considered an effective strategy for handling an individual’s assets, assuming it gives clear directions on how assets should be disbursed after death, and who the beneficiaries are. Using a living trust, individuals enjoy greater control over their assets and can ensure their wishes will be executed after they die. Basically, a living trust is all about better control over an individual’s assets, both when they are alive and deceased. So, who should consider having a living trust?

Individuals who own property in another state can benefit from a living trust, as can grantors who have disabled beneficiaries. People who want to create other trusts inside a living trust that are not required to be supervised by a court can also benefit. Individuals who fear they might become disabled and that their decisions might be influenced can also be protected by this type of trust. Finally, those who live in states with costly and time-consuming probates may want to consider a living trust.

Finance

Understanding Revocable and Irrevocable Trusts

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Revocable and Irrevocable Trusts
Image: investopedia.com

Based in Newport, CA, Richard T. Howard is an experienced trust manager with a long career that has enabled him to offer his expertise to a diverse client portfolio. An architectural technology graduate from Memphis State University, Richard T. Howard of Newport, CA, is the owner of CDAMT. In his current role, he provides numerous asset protection advisory services, such as explaining the difference between revocable and irrevocable trusts.

Revocable trusts and irrevocable trust are terms commonly used in trust management. A revocable trust is a trust you can make changes to at any time. As the owner, you have the freedom to modify the terms of the trust, change the beneficiaries, or revoke the entire trust if it no longer meets your needs. To enjoy these benefits, when setting up a revocable trust, you should be the sole trustee, as this enables you move assets in and out of the trust as you wish. A lot of people put a significant portion of their assets in revocable trusts because of the flexibility and control associated with them.

With an irrevocable trust, you surrender ownership and control of your property, meaning you cannot make any changes to the trust. Once the agreements to form the trust have been finalized, you can’t have your properties back, and you cannot be a trustee or manage the assets in the trust. Once the trust is formed, you must step aside permanently. An irrevocable trust becomes revocable if you die, as you’re no longer available to make any changes to the trust. It is important to carefully select assets you put into an irrevocable trust, as you basically give up your entire rights and control. Irrevocable trusts are not subject to estate tax upon death, and relieve beneficiaries from paying any taxes on income generated from assets.

Finance, Richard T. Howard

Establishing a Charitable Trust

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An alumnus of Memphis State University, Richard T. Howard is a manager of trust services with CDAMT in Newport Beach, CA, where he has provided legal services to trusts on behalf of more 1,100 clients. Richard T. Howard is also a trust facilitator with Masters Copyrights, LLC. In this role, he helps produce and market private, real estate, and charitable trusts, among others.

A charitable trust refers to a set of assets designated for philanthropic use and, in many cases, is established for the purpose of creating a charitable foundation. These assets are managed by the charity, which is then entitled to some, if not all, of the tax-free interest they generate via annual payments known as annuities or unitrusts. There are two basic types of charitable trusts: lead trusts and remainder trusts.

A lead trust is one that is controlled by the donor and generally passed down to his or her beneficiaries following its expiration, whereas assets in a remainder trust are signed over to the specified charity following a certain amount of time. The Bill and Melinda Gates Foundation Trust is the most prominent example of a remainder trust. It has assets in excess of $30 billion and expires 50 years after their deaths.

While philanthropy is a primary objective of establishing a charitable trust, they also have tax-related benefits. Donors who own highly appreciated assets can receive federal income tax deductions dependent upon the trust’s value.

Finance, Richard T. Howard

Definitions of Common Terms Associated with Trust Management

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Trust pic
Trust
Image: investopedia.com

Newport Beach, CA resident Richard T. Howard is an established trust manager with over 1,100 clients served. A trustee at Newport Beach, CA-based CDAMT, Richard T. Howard facilitates legal services for trusts and trains clients on the details of trust management.

Below are the definitions of some of the most common terms in trust management:

– Trust. A trust is a legal entity created to manage or transfer property. It is established when a settlor transfers assets to a trustee with the understanding that the latter will use or otherwise manage the property as provided in the trust agreement, for the ultimate benefit of the trust’s beneficiaries.

– Trust estate. This is the sum of property transferred to a trustee by a settlor for holding and management subject to the conditions of the trust. The property held in trust is not subject to turnover (though some states have exceptions to these creditor protections). The properties also benefit from certain tax advantages.

– Settlor. This is the person who initiates the creation of a trust by transferring property to a trustee. Settlors are also called trustors, creators, or grantors.

– Trustee. This is a person or corporate entity holding legal title to a trust. A trustee holds and manages the trust estate and is legally obligated to abide by the terms established in the trust.

– Beneficiary. This is the person or entity that benefits from a trust estate. They do not hold equitable title over the trust estate, only a beneficial interest. Therefore, they have no right to manage the trust or access its business records.