Trust Elements - Beneficiary

A trust has five main elements. First, a settlor transfers some or all of his or her property. Second, the property transferred by the settlor is designated trust property. Third, the trust property designated by the settlor is transferred with the settlor’s intent that it be managed by another. Fourth, the trust property designated by the settlor is transferred for management by a trustee. Fifth, the trust property designated by the settlor is managed by a trustee for the benefit of a beneficiary.

Estate-Tax Valuation — Real Property

The value of any real property as of a given date is subject to widely differing opinions. If there is no market for the property, it should be valued at (a) the highest price available, or (b) the amount it will bring as salvage, whichever is greater. If there is a market for real property held by the estate, the factors that you (and/or a professional appraiser) should consider are the following:

An Overview of Personal Representatives

In most instances, when a person dies owning property of any real value, it is necessary to appoint someone to administer the estate. That person (it could be one or several persons, a bank or trust company, or both) who acts for, or “stands in the shoes of,” the deceased is called the personal representative. The duties and responsibilities of the personal representative, and even the title of the personal representative, may change depending on the state laws and circumstances involved, but the need for such a person (or persons) is shared by all.

Executors - Investing Estate Assets

After paying all of the estate’s debts and expenses, or perhaps while waiting until it is time to pay them, what does an executor do with all of the estate’s money? Is the executor responsible for actively investing the estate assets? Many people are under the mistaken impression he is.

Basic Trust Types and Formation

An express trust can be either private or charitable. The main difference is that the beneficiaries in a private trust are identifiable persons while a charitable trust cannot be for the benefit of identifiable persons. A charitable trust must be for religious, charitable, educational, or benevolent purposes, and cannot name only a few individuals to receive the benefit. If a charitable trust fails to name a specific charity, a court will redirect the trust property to a recipient that most closely appears capable of carrying out the charitable purpose.

Housing - Federal Public Housing Programs - § 231 Housing Mortgage Insurance For The Elderly

The § 231 program provides low-interest, fixed-rate mortgage loans to housing developers for either construction or rehabilitation of rental units occupied by the elderly or the handicapped.

Department of Defense Health Care Benefits

The United States Department of Defense (DOD) provides health care coverage to its members through its own facilities, military facilities, and private health care providers, although the cost of the care may vary depending upon the recipient and the location of the services provided.

Asset Management - Viatical and Senior Settlements

In a viatical or senior settlement, a person who owns a life insurance policy sells the policy for a lump sum payment, usually a percentage of the policy’s face value, to a buyer. The buyer of the policy then becomes the beneficiary, pays the premiums, and receives the full amount of the insurance when the original owner dies. Viatical settlements can be risky for both the sellers and the buyers and should be evaluated carefully.

Concerns about Variable Annuities

An annuity may be a wise investment because it can pay income to the annuitant for the rest of his or her life. The amount of that income can be fixed or variable. In a fixed annuity, the income payment is typically guaranteed. In a variable annuity, the income amount will fluctuate based on the performance of the investment portfolio.

Housing - Armed Forces Retirement Home

The Armed Forces Retirement Home (AFRH) provides eligible veterans with a retirement living option that is not available to most Americans. AFRH has two locations. The U.S. Naval Home is in Gulfport, Mississippi, and the U.S. Soldiers’ and Airmen’s Home is in Washington, D.C. Both are open to veterans of all military branches, and both provide a wide range of facilities and services to their residents.