California Probate - Law Offices of Janet Brewer Blog

Is a Tax Change a Good Time to Check My Will?

A last will and testament can make certain that your goals for legacy and asset disposition are satisfied and carried out. However, what most people fail to grasp is that a will needs regular review—especially if the document was written or involved the creation of a trust prior to passage of tax reform, the Tax Cuts and Jobs Act (TCJA), in 2017, says Financial Advisor’s recent article entitled “Tax Changes Make This A Good Time To Revise A Will.”

Wills can pass on assets, but taxes have come to greatly impact how much money is passed on. People usually understand the primary components, including the tax implications, of their wills.

These include:

• The unlimited marital deduction
• Applying current rules to make non-taxable gifts of up to $15,000 per person
• The current estate tax exemption of $11.58 million
• Health care directives
• Naming trustees and executors; and
• Creating long-term trusts with non-taxable asset transfers.

Wills and trusts were created prior to the passage of the TCJA may not consider that reform changed the amount which can be exempted from estate taxes.

The law more than doubled the amount that can be exempted from estate taxes. The potential tax changes could cause many more Americans to have a taxable estate, and it’s important to have a full understanding of your assets and carefully decide who you want to receive them. You must also decide if you want them passed outright or through a trust.

Privacy is a good reason why some people often prefer trusts. They also like the quick processing and avoiding probate.

Estate plans should be reviewed every few years, and wills should be reviewed more frequently because life changes are the biggest reason for trouble in revising wills.

Divorce, separation or marriage; the birth or adoption of children, as well as a child reaching adulthood; and changes to finances, location, and health all can play important roles.

Reference: Financial Advisor (Nov. 9, 2020) “Tax Changes Make This A Good Time To Revise A Will”

Should a Donor-Advised Fund Be Part of My Estate Planning?

“With the prospect of a Biden administration potentially raising tax rates and cutting estate tax exclusion amounts in half, some well-off taxpayers may be looking for a way to ease their burden, even while contributing to their favorite charities. A donor-advised fund may well be that opportunity.”

A donor-advised fund is a charitable-giving vehicle that lets a donor make grants to a charity over a period of years. Bizrate’s recent article entitled “Donor-advised funds: A popular tax-advantaged way to give to charity” explains that an individual makes a charitable donation to a fund sponsor, such as a nonprofit foundation or an investment firm, and the donor takes a tax deduction in the year the initial fund was established. The money can be distributed in later years by the fund sponsor under the advisement of the donor.

Once the fund has been created, the money can’t be returned. When the fund is established, the donor establishes the rules for how money is to be gifted. However, the sponsor technically controls the fund. The donor’s advice on what to fund isn’t binding. However, it's uncommon for the sponsoring organization’s board to exercise its variance powers and disregard the advice of the donor. The funds that aren’t granted out each year can be invested. That way, an initial charitable gift can eventually yield far more than that initial gift in total gifts going to end-use charities.

To get a tax advantage out of these funds, you need to itemize your deductions. As a result, you’ll need to have deductions more than $24,800 for a married couple or $12,400 for an individual taxpayer in 2020 (or $25,100 and $12,550, respectively, in 2021). If you don’t hit those thresholds, the donor-advised fund has no net tax benefit.

A donor-advised fund is simpler and less expensive than other similar vehicles, like a private foundation or a charitable trust. It also provides numerous other benefits that can make it a wise choice for donors.

Tax management. The possibility of tax law changes may attract some individuals because the Biden administration has said it’s looking at raising the capital gains tax rates on wealthier taxpayers. The President-Elect has also mentioned decreasing the amount of money that can be excluded from the estate tax and eliminating the step-up in cost basis on inherited assets.

Simplicity. A donor-aided fund may let you create one plan to manage all your charitable giving and allow the fund sponsor to do the administrative work.

Anonymity. If it’s created via a community foundation, a donor-advised fund can be used to make anonymous gifts.

Advice. The fund sponsor can help the donor choose the charities to support or how to manage the giving process, which can help newer or less informed donors.

Flexibility. Some may have liquidity and want to devote cash to charity but are unsure of which charities to support. The donor-advised fund allows the donor to make the initial gift now and make grants in the future. As a result, donors can take the tax break now and decide later where to give the funds.

Teachable giving. Young and adult children can participate in the gift advice process and can be given the opportunity to serve as the fund adviser after the death, incapacity, or resignation of their parents.

The difference from a charitable trust. A donor-advised fund differs from a charitable trust, depending on the specific trust. However, a significant difference is that with a trust, the individual donor can still benefit in some way. In contrast, with a donor-advised fund the money is effectively given away with no ownership.

When using a charitable lead trust, some of the principal will be distributed to beneficiaries, compared to a charitable remainder trust, where you receive annual income, and the charity gets money in the future.

A donor-advised fund is a completed charitable gift. There is no element of continued ownership or control, and no income flow going back to the beneficiaries.

Because of the complexity surrounding these planning issues, it’s wise to speak with an experienced estate planning attorney. You can read more about how our process works, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: Bizrate (Nov. 9, 2020) “Donor-advised funds: A popular tax-advantaged way to give to charity”

Incorporating Gifting with an Estate Plan

“Gifting sounds pretty simple, but there are many ways to do it. There are also several tax ramifications to be aware of.”

Kiplinger’s recent article entitled “Gifting sounds pretty simple, but there are many ways to do it, and several tax ramifications to be aware of as well” explains that no matter if a gift is made this year or in future years, there are some important questions to consider.

Increased exemption. The Tax Cuts and Jobs Act significantly upped the lifetime gift, estate and generation-skipping tax exemption to $11.58 million per individual ($23.16 million per couple). It’s set to expire at the end of 2025. Thus, there’s the prospect of possibly losing an opportunity to transfer wealth out of your estate and save on future estate taxes earlier than anticipated.

When to Give. A big question is whether a person should give away assets during their lifetime or at their death. Those who opt to gift while they’re alive often do so to reduce their estate and to share in the joy of seeing the effect it makes in the lives of the recipients. Others decide to gift after death for the security of having the assets on hand, if they’re needed. Gifting after death also gives recipients time to prepare for the responsibility that comes along with inheriting wealth.

Unified Federal Estate & Gift Tax Exemption. There are many ways to distribute assets. What works for one family isn’t necessarily the wisest strategy for another. Note that any transfer is gift tax-free up to the annual exclusion amount ($15,000 per person per donor in 2020). Any gift over this amount will count against the donor’s lifetime exemption amount. After that lifetime exemption is used, the gift will be subject to gift tax.

Outright cash gifts. This appears to be the most uncomplicated way of gifting. However, for those with significant wealth, this approach could have some drawbacks. These concern the ability and experience gift recipients have to manage money, outside risks, such as a spouse or high-risk professions, and demotivating recipients to live off their inheritance, instead of becoming productive on their own. Therefore, distributing large amounts of money—particularly at a young age—is generally discouraged.

Trusts. These are used frequently for larger gifts to provide for beneficiaries, while using controls by the grantor. These parameters can include things like distributing trust assets in stages (when the beneficiary reaches a certain age or achieves a specific goal). You can also leave assets in a discretionary lifetime trust, which would maintain the assets in a trust for the beneficiary’s entire lifetime. When set up by an experienced estate planning attorney, this offers a high level of protection from divorcing spouses, lawsuits, poor financial decisions and outside influences. It can also let the grantor create a lasting family legacy for many generations.

Gifts for education or medical expenses. Direct payments for college tuition or for medical expenses have no gift tax consequences. Educational gifts can also be made by funding a 529 educational savings plan. While there are no contribution limits for a 529 plan, gifts over the annual exclusion amount can have gift tax consequences or count against the lifetime exemption. You can also pre-fund an account up to $75,000 and it will receive the same tax treatment, as if it were gifted in $15,000 increments over five years.

Uniform Trust to Minors Act (UTMA) and Uniform Gifts to Minors Act (UGMA). These custodial accounts are generally less restrictive than trusts and let minor beneficiaries access funds at age a specific age depending on state of residence.

You can read more about how our process works, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: Kiplinger (Oct. 30, 2020) “Gifting sounds pretty simple, but there are many ways to do it, and several tax ramifications to be aware of as well.”

How Do I Keep Money in the Family?

“If you're single and die in 2020, you can have up to $11.58 million in assets before your heirs have to worry about paying a penny in estate taxes.”

That seems like an awfully large amount of money. You might think only the super wealthy need to worry about estate planning, but you'd be wrong to think planning is only necessary for the 1%.

US News and World Report’s recent article entitled “5 Estate Planning Tips to Keep Your Money in the Family” reminds us that estate taxes may be only part of it. In many cases, there are income tax ramifications.

Your heirs may have to pay federal income taxes on retirement accounts. Some states also have their own estate taxes. You also want to make certain that your assets are transferred to the right people. Speaking with an experienced estate planning attorney is the best way to sort through complex issues surrounding estate planning. Here are some things you should cover:

Create a Will. This is a basic first step. However, 68% of Americans don’t take it. Many of those who don't have a will (about a third) say it's because they don't have enough assets to make it worthwhile. This is not true. Without a will, your estate is governed by state law and will be divided in probate court. Ask an experienced estate planning attorney to help you draft a will.  You should also review it on a regular basis because laws and family situations can change.

Review Your Beneficiaries. There are specific types of accounts, like retirement funds and life insurance in which the owners designate the beneficiaries, rather than this asset passing via the will. The named beneficiaries will also supersede any directions for the accounts in your will. Like your will, review your account beneficiaries after any major life change.

Consider a Trust. Ask an experienced estate planning attorney about a trust for possible tax benefits and the ability to control when a beneficiary gets their money (after they graduate college or only for a first home, for example). If money is put in an irrevocable trust, the assets no longer belong to you. Instead, they belong to the trust. That money can’t be subject to estate taxes. In addition, a trust isn't subject to probate, which keeps it private.

Convert to Roth’s. If you have a traditional 401(k) or IRA account, it might unintentionally create a hefty tax bill for your heirs. When your children inherit an IRA, they inherit the income tax liability that goes with it. Regular income tax must be paid on distributions from all traditional retirement accounts. In the past, non-spousal heirs, such as children could “stretch” those distributions over their lifetime to reduce the total amount of taxes due. However, now the account must be completely liquidated within 10 years after the death of the owner. If the account balance is substantial, it could necessitate major distributions that may be taxed at a higher rate. To avoid leaving beneficiaries with a large tax bill, you can gradually convert traditional accounts to Roth accounts that have tax-free distributions. The amount converted will be taxable on your income taxes, so the objective is to limit each year's conversion, so it doesn't move you into a higher tax bracket.

Make Gifts While You’re Alive. A great way to make certain that your money stays in the family, is to just give it to your heirs while you're alive. The IRS allows individuals to give up to $15,000 per person per year in gifts. If you're concerned about your estate being taxable, these gifts can decrease its value, and the money is tax-free for recipients.

Charitable Donations. You can also reduce your estate value, by making charitable donations. Ask an experienced estate planning attorney about setting up a donor-advised fund, instead of making a one-time gift. This would give you an immediate tax deduction for money deposited in the fund and then let you make charitable grants over time. You could designate a child or grandchild as a successor in managing the fund.

Complicated strategies and a constantly changing tax code can make estate planning feel intimidating. However, ignoring it can be a costly mistake for your heirs. Talk to an estate planning attorney.

If you have any questions about your current estate plan, please call or email us today.

Reference: US News and World Report (Sep. 30, 2020) “5 Estate Planning Tips to Keep Your Money in the Family”

What are the Top Giving Characteristics of Donors?

“Gender and childlessness have always been among the most leading indicators for charitable gifts in estate planning. However, new research has identified a top 10 list of lifetime characteristics that are most important in predicting charitable transfers.”

Russell James, a professor in the Department of Personal Financial Planning at Texas Tech University in Lubbock, Texas, discussed his research with The Nonprofit Times in a recent article entitled “Research Shows Donors’ 10 Estate Giving Characteristics.”

“The Emerging Potential of Longitudinal Empirical Research in Estate Planning: Examples from Charitable Bequests,” is based on the Health and Retirement Study (HRS), which includes nationally representative data that has been released every two years since 1992. The HRS monitored roughly 14,000 individuals beginning at age 50 to connect lifetime giving and other characteristics and planning to determine how estates have been transferred. The examination of the top 10 lifetime characteristics most important in predicting who would make post-mortem charitable transfers were as follows, in order of importance:

• Consistency in donating (percentage of survey years when respondents gave $500+ to charity)
• No children
• The greatest amount ever donated in any one year in life
• Consistency in reporting having a funded trust
• Female
• Wealth in the last survey
• Not married
• The amount of the donation in the year of the final survey
• Having a growing trajectory of wealth leading up to death; and
• Consistency in volunteering.

“Several of these most important predictive factors reflect behavior across many years,” said James. He cited wealth trajectory approaching death, rather than just ending wealth, as critical along with consistency across all survey years in giving, donating and reporting having a funded trust.

The greatest amount of donations ever reported in any one year was a major predictor. “By disclosing more of the lifetime history of decedent behaviors, the HRS reveals the importance of such comprehensive information in predicting post- mortem charitable estate transfers,” the paper noted.

Reference: The Nonprofit Times (Sep. 22, 2020) “Research Shows Donors’ 10 Estate Giving Characteristics”

Does My Estate Plan Need an Audit?

“Estate planning is the process of transferring the management of your assets, if and when you are unable to manage them yourself due to disability or death. Whether you have $100 or $100 million you should have an estate plan.”

You should have an estate plan because every state has statutes that describe how your assets are managed, and who benefits if you don’t have a will. Most people want to have more say about who and how their assets are managed, so they draft estate planning documents that match their objectives.

Forbes’ recent article entitled “Auditing Your Estate Plan” says the first question is what are your estate planning objectives? Almost everyone wants to have financial security and the satisfaction of knowing how their assets will be properly managed. Therefore, these are often the most common objectives. However, some people also want to also promote the financial and personal growth of their families, provide for social and cultural objectives by giving to charity and other goals. To help you with deciding on your objectives and priorities, here are some of the most common objectives:

• Making sure a surviving spouse or family is financially OK
• Providing for others
• Providing now for your children and later
• Saving now on income taxes
• Saving on estate and gift taxes in the future
• Donating to charity
• Having a trusted agency manage my assets, if I am incapacitated
• Having money for my children’s education
• Having retirement income; and
• Shielding my assets from creditors.

Speak with an experienced estate planning attorney about the way in which you should handle your assets. If your plan doesn’t meet your objectives, your estate plan should be revised. This will include a review of your will, trusts, powers of attorney, healthcare proxies, beneficiary designation forms and real property titles.

Note that joint accounts, pay on death (POD) accounts, retirement accounts, life insurance policies, annuities and other assets will transfer to your heirs by the way you designate your beneficiaries on those accounts. Any assets in a trust won’t go through probate. “Irrevocable” trusts may protect assets from the claims of creditors and possibly long-term care costs, if properly drafted and funded.

Another question is what happens in the event you become mentally or physically incapacitated and who will see to your financial and medical affairs. Use a power of attorney to name a person to act as your agent in these situations.

If, after your audit, you find that your plans need to be revised, follow these steps:

1. Work with an experienced estate planning attorney to create a plan based on your objectives
2. Draft and execute a will and other estate planning documents customized to your plan
3. Correctly title your assets and complete your beneficiary designations
4. Create and fund trusts
5. Draft and sign powers of attorney, in the event of your incapacity
6. Draft and sign documents for ownership interest in businesses, intellectual property, artwork, and real estate
7. Discuss the consequences of implementing your plan with an experienced estate planning attorney; and
8. Review your plan regularly.

You can read more about how our process works, how we can make sure we are a good fit for your needs, and how to get started today right here.

Reference: Forbes (Sep. 23, 2020) “Auditing Your Estate Plan”

When Exactly Do I Need to Update My Will?

“It is also important to realize that it isn’t merely “why” you are updating your will, but “when” you are updating that can make all the difference. Acting too late (or too early) may mean your changes are no longer appropriate or even immediately invalidated.”

Many people say that they’ve been meaning to update their last will and testament for years but never got around to doing it.

Kiplinger’s article entitled “12 Different Times When You Should Update Your Will” gives us a dozen times you should think about changing your last will:

1. You’re expecting your first child. The birth or adoption of a first child is typically when many people draft their first last will. Designate a guardian for your child and who will be the trustee for any trust created for that child by the last will.

2. You may divorce. Update your last will before you file for divorce, because once you file for divorce, you may not be permitted to modify your last will until the divorce is finalized. Doing this before you file for divorce ensures that your spouse won’t get all of your money, if you die before the divorce is final.

3. You just divorced. After your divorce, your ex no longer has any rights to your estate (unless it’s part of the terms of the divorce). However, even if you don’t change your last will, most states have laws that invalidate any distributive provisions to your ex-spouse in that old last will. Nonetheless, update your last will as soon as you can, so your new beneficiaries are clearly identified. 

4. Your child gets married. Your current last will may speak to issues that applied when your child was a minor, so it may not address your child’s possible divorce. You may be able to ease the lack of a prenuptial agreement, by creating a trust in your last will and including post-nuptial requirements before you child can receive any estate assets.

5. A beneficiary has issues. Last wills frequently leave money directly to a beneficiary. However, if that person has an addiction or credit issues, update your last will to include a trust that allows a trustee to only distribute funds under specific circumstances.

6. Your executor or a beneficiary die. If your estate plan named individuals to manage your estate or receive any remaining funds, but they’re no longer alive, you should update your last will.

7. Your child turns 18. Your current last will may designate your spouse or a parent as your executor, but years later, these people may be gone. Consider naming a younger family member to handle your estate affairs.

8. A new tax or probate law is enacted. Congress may pass a bill that wrecks your estate plan. Review your plan with an experienced estate planning attorney every few years to see if there have been any new laws relevant to your estate planning.

9. You come into a chunk of change. If you finally get a big lottery win or inherit money from a relative, update your last will so you can address the right tax planning. You also may want to change when and the amount of money you leave for certain individuals or charities.

10. You can’t find your original last will. If you can’t locate your last will, be sure that you replace the last will with a new, original one that explicitly states it invalidated all prior last wills.

11. You purchase property in another country or move overseas. Many countries have treaties with the U.S. that permit reciprocity of last wills. However, transferring property in one country may be delayed, if the last will must be probated in the other country first. Ask your estate planning attorney about having a different last will for each country in which you own property.

12. Your feelings change for a family member. If there’s animosity between people named in your last will, you may want to disinherit someone. You might ask your estate planning attorney about a No Contest Clause that will disinherit the aggressive family member, if he or she attempts to question your intentions in the last will.

If you have any questions about your current will or any other estate planning documents, please call or email us today.

Reference: Kiplinger (May 26, 2020) “12 Different Times When You Should Update Your Will”

How Do I Protect an Inheritance from the Tax Man?

“Did you receive an inheritance of cash, investments, or property? Here are four ways that can help you keep it from being swallowed up by taxes.”

Inheritances aren’t income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source. Therefore, you must include the interest income in your reported income.

The Street’s recent article entitled “4 Ways to Protect Your Inheritance from Taxes” explains that any gains when you sell inherited investments or property are usually taxable. However, you can also claim losses on these sales. State taxes on inheritances vary, so ask a qualified estate planning attorney about how it works in your state.

The basis of property in a decedent’s estate is usually the fair market value (FMV) of the property on the date of death. In some cases, however, the executor might choose the alternate valuation date, which is six months after the date of death—this is only available if it will decrease both the gross amount of the estate and the estate tax liability. It may mean a larger inheritance to the beneficiaries.

Any property disposed of or sold within that six-month period is valued on the date of the sale. If the estate isn’t subject to estate tax, the valuation date is the date of death.

If you are getting an inheritance, you might ask that they create a trust to deal with their assets. A trust lets them pass assets to beneficiaries after death without probate. With a revocable trust, the grantor can remove the assets from the trust, if necessary. However, in an irrevocable trust, the assets are commonly tied up until the grantor dies.

Let’s look at some other ideas on the subject of inheritance:

You should also try to minimize retirement account distributions. Inherited retirement assets aren’t taxable, until they’re distributed. Some rules may apply to when the distributions must occur, if the beneficiary isn’t the surviving spouse. Therefore, if one spouse dies, the surviving spouse usually can take over the IRA as their own. RMDs would start at age 72, just as they would for the surviving spouse's own IRA. However, if you inherit a retirement account from a person other than your spouse, you can transfer the funds to an inherited IRA in your name. You then have to start taking RMDs the year of or the year after the inheritance, even if you're not age 72.

You can also give away some of the money. Sometimes it’s wise to give some of your inheritance to others. It can assist those in need, and you may offset the taxable gains on your inheritance with the tax deduction you get for donating to a charitable organization. You can also give annual gifts to your beneficiaries, while you're still living. The limit is $15,000 without being subject to gift taxes. This will provide an immediate benefit to your recipients and also reduce the size of your estate. Speak with an estate planning attorney to be sure that you're up to date with the frequent changes to estate tax laws.

Reference: The Street (May 11, 2020) “4 Ways to Protect Your Inheritance from Taxes”

The Path Common Types of Trusts and the Basic Structure that Allows for Security

Trusts are a common financial tool used in estate planning. Trusts are defined as legal entities created by a trustor through which a second party, the trustee, holds the right to manage the trustor’s assets for the benefit of a third party or beneficiary.

There are many types of trusts that work in slightly different ways to secure the assets for the beneficiaries. Trusts also allow the passage of these assets to occur quickly by avoiding probate, additional court fees, and they may even reduce the tax burden on the assets as well. An overview of some of the most common types of trusts and their basic structure is provided below.

Living Trusts

Living trusts are created by the trustor in their lifetime and allow them to continue using the assets and property placed in the trust while they are alive. The assets and property are conveyed to the beneficiary through a trustee upon the trustor’s death. This is the most common type of trust and allows individuals to pass on inheritances while avoiding probate court.

Revocable Trusts

Revocable trusts are very similar to living trusts in that they are created during the trustor’s lifetime, and they can be changed or altered by the trustor while they are still alive. These trusts move assets out of probate but allow the trustor to retain control of the assets.

Irrevocable Trusts

Unlike revocable trusts, irrevocable trusts don’t simply move assets out of probate, they move them out of the trustor’s estate, and these trusts cannot be altered once they have been executed, no matter whether the trustor is alive or not. The trustor loses all control over the assets and cannot thereafter change the terms or dissolve the trust. Irrevocable trusts are generally established to minimize or eliminate estate taxes or to reduce the tax liability on the income generated by the assets in the trust. In some instances, assets in an irrevocable trust may be sheltered against legal judgments against the trustor.

Testamentary/Will Trusts

Will or testamentary trusts are described in a trustor’s will and created upon their death. A will trust is instituted by an executor, who manages the trust for the trustor’s beneficiaries after their will has been created. The assets are subject to probate and transfer taxes, and this type of trust is irrevocable.

Insurance Trusts

Insurance trusts allow the trustor to include the value of their life insurance policies within the scope of the trust, thus avoiding estate taxes on the funds. These are irrevocable trusts that the trustor cannot change. In many instances, these policies can help pay for the expenses incurred by the estate after the death of the trustor.

Charitable Trusts

Charitable trusts name a non-profit organization or charity as the beneficiary. A charitable lead trust can be included as a component in another trust, allowing the trustor to assign some assets to family or inheritors and some to the charity. Charitable remainder trusts enable the trustor to receive the income generated by the trust’s assets for a defined period of time, with the remainder of the assets then going to the charity.

Blind Trusts

Blind trusts refer to trusts that are entirely handled by the trustees, and no knowledge of the trustees’ activities is conveyed to the beneficiaries. These types of trusts are desirable when there may be conflict between the beneficiaries and the trustees or amongst the beneficiaries.

Credit Shelter Trusts

Credit shelter trusts allow the trustor to grant beneficiaries an amount of assets up to the estate tax exemption limit, with the rest of the assets going to a spouse or family member. These trusts remain tax-free forever, no matter how much the assets may grow over time.

Generation-Skipping Trusts

Generation-skipping trusts employ generation-skipping tax exemption allowances to allow assets to be distributed to grandchildren or subsequent generations without incurring additional estate taxes upon the death of the trustor’s children.

Qualified Terminable Interest Property Trust

These trusts are frequently used to provide income for a surviving spouse. They allow the trustee to define asset distribution to different beneficiaries at different times – generally to a spouse after the trustor’s death, and then to children after the spouse’s death.

Asset Protection Trusts

Asset protection trusts are generally executed outside of the US in order to protect the trustor’s assets from creditor claims. They are generally irrevocable for a defined time period, and control of the assets is returned to the trustor upon the termination of the trust.

Trusts can be employed to meet many different financial and asset goals. If you are considering executing a trust, it’s always a good idea to meet with an experienced estate planning professional who can help identify the best type of trust to meet your unique financial needs and goals.

Will 007 Leave His Little Spies All of His Riches?

“Daniel Craig, who welcomed a daughter with wife Rachel Weisz in 2018, has dismissed the idea of bequeathing a large fortune.”

James Bond actor Daniel Craig says he and his wife, Rachel Weisz, won’t be giving their large fortune of over $100 million to their children. In an interview with Saga magazine, the James Bond star commented that he finds the idea of inheritance “distasteful.”

“My philosophy is to get rid of it or give it away before you go,” he said.

Yahoo Entertainment’s article from March entitled “Daniel Craig says he doesn't plan to leave his fortune to his kids: 'Get rid of it or give it away before you go',” reports that he has a baby daughter, born in 2018, with actress wife Rachel Weisz and an older daughter Ella, who is in her 20s, from his previous marriage. Craig is also stepfather to Weisz’s 13-year-old son Henry.

“I don’t want to leave great sums to the next generation.”

Craig is not the only celebrity who has vowed to cut out his children from his estate plan. He is one of a growing number of stars who believe in allowing their children to find their own financial way in the world, instead of using their wealthy parents.

For example, rock icon Elton John and his husband David Furnish said in 2016 that they would be giving the lion’s share of their fortune to charity, not their two sons.

“Of course, I want to leave my boys in a very sound financial state. However, it’s terrible to give kids a silver spoon. It ruins their life,” John remarked.

John went on, “Listen, the boys live the most incredible lives, they’re not normal kids, and I’m not pretending they are. But you have to have some semblance of normality, some respect for money, some respect for work.”

Likewise, American Idol impresario Simon Cowell, told the Mirror in 2013 that he’s going to leave his money to somebody. “A charity, probably — kids and dogs. I don’t believe in passing on from one generation to another,” he said.

“Your legacy has to be that hopefully you gave enough people an opportunity, so that they could do well, and you gave them your time, taught them what you know,” Cowell added.

Daniel Craig will soon star in his final Bond movie, No Time to Die. The 007 film was originally scheduled for release in April, but now has been delayed until November.

Reference: Yahoo Entertainment (March 23, 2020) “Daniel Craig says he doesn't plan to leave his fortune to his kids: 'Get rid of it or give it away before you go'”