Estate planning is a very effective way of planning for how one’s assets should be used or distributed in the event of his or her death or while still alive. It helps in ensuring the security of one’s property, good living at retirement, loyal distribution of one’s property and it also saves one the burden of being taxed. Such property is best distributed using the most preferred document; wills and trusts.
Trusts can be classified into revocable and irrevocable trusts. A revocable trust is also called a living trust or an inter vivo. It is a written legal document in which a trust maker’s assets are placed into a trust for his or her benefit during his or her lifetime and then transferred to designated beneficiaries at the trust maker’s death. A testamentary on the other hand, can also be called a will trust; a trust that is given when the trust maker is already dead.
Since Norman is in a family where there have been divorces, remarriages, and stepchildren, a qualified terminable interest property trust will be majorly applicable besides just writing a revocable trust.
Norman’s share of the company can be included in his as inheritance for his biological children and his nephew. A fraction of his bank savings together with security worth $500,000 could be divided among his wife and ex- wives. It should also be put into consideration that Norman may at some point be retiring so the remaining portion of his wealth could be taken into his retirement account to ensure that he lives a fulfilling life thereafter.
Samuelson S.(2011) “Legal Environment ”Cengage Learning
Norman P. (2012) “Business Law”