If you have a substantial amount of money to leave your family in your estate plan, it's often wise not to leave it to them in a lump sum. This can have significant tax implications for them. If you have more than one child, they may each benefit from having a different type of trust, so it's a good idea to learn about the various types.

So-called “spendthrift trusts” are often used for people who need some supervision when it comes to money. A spendthrift trust is managed by a trustee who disburses money based on your instructions or (if you designate) at their own discretion. This kind of trust also protects a beneficiary's inheritance from being taken by creditors, plaintiffs in a lawsuit or a spouse in a divorce. That's because they don't legally have any control over the money.

A trust is a legal arrangement whereby you give another party the power to control and manage your assets on behalf of a third party, usually your beneficiaries. For a revocable trust or living trust, the property you grant the trust remains within your control, and you may amend or revoke the terms any time you wish to do so. However, there are drawbacks associated with your control of the assets since the ownership remains under your name.

With an irrevocable trust, property under it transfers ownership from you to the trust. In addition, the terms cannot be easily modified or revoked once the trust is established. Depending on the size of your estate, it may be a beneficial form of estate transfer. There are benefits an irrevocable trust offers that a revocable trust does not. They include:

Protecting your assets

Since you do not legally own the property in an irrevocable trust, creditors cannot attach the said property to recover the debt. The same applies to the beneficiaries' creditors. As such, your estate is safe from repossession in case you default on debt. In addition, if the beneficiary gets a divorce, the property under a trust cannot be obtained from them to their ex-spouse.

As you start your estate planning, you likely already know that one of your goals should be helping your estate avoid probate – or at least a long, complicated one that will put your loved ones through the added expense and stress at an already difficult time.

If there's anything worse than one probate process, it's two. That may be necessary if you own property in another state when you pass away. Property that's subject to probate has to be dealt with in a court in that state. That's called “ancillary probate.” (Probate in your home state is “domiciliary probate.”)

The good news is that state probate courts are typically amenable to cooperating with each other on ancillary probate proceedings. That can make things easier for your executor, who will need to initiate all probate. However, it's still important to make sure your executor knows about this out-of-state property. They may have to travel there to deal with it. Going up to Wisconsin is one thing, but if you also have a condo in South Florida you're planning to retire to, that can mean a lot of extra time and travel.

If you have always been ahead of the crowd in adopting new technology, you need to make sure your estate plan is as up-to-date as you are.

When cryptocurrency launched, it touted two main advantages — security and tax avoidance. While the first bitcoin came out in 2009, it took a while for governments to realize cryptocurrency was here to stay. Therefore, they are still playing catch up to regulate it.

Keeping things secret is not good for your heirs

The security advantages that cryptocurrency promises can be its downfall if you do not allow for access in your estate plan.

Unexpected events can often result in significant financial stress, leading to a higher amount of debt. Bankruptcy can be a practical and viable option for Chicago area residents who find themselves with debts that have become unmanageable. Deciding to file for bankruptcy is a major decision and the process can be confusing. Therefore, it is important to understand your bankruptcy options, the requirements and the steps involved.

Chapter 7 bankruptcy can be the fastest and best way to eliminate debt, but this type of bankruptcy doesn't work for every person and every form of debt. For instance, credit card debts and overdue utility or medical bills can be discharged, but, debts such as child support, student loans or tax obligations cannot.

Credit counseling is required as part of the Chapter 7 bankruptcy process. The counseling must be done through a Department of Justice approved credit counseling agency and can be completed on the phone or online. The goal of the counseling is to provide an understanding of the bankruptcy process and the impact and potential future consequences of filing for bankruptcy.