There is an old expression about using the right tool for the right job, and this dynamic can be applied to the process of estate planning. In the field, there are different types of trusts that can be utilized. The appropriate choice will depend upon the circumstances, so you should act in a fully informed manner. Revocable Living Trusts First, let's look at the revocable living trust, because this type of trust can be very effective for a wide range of people. You do not have to be … [Read more...] about The Right Trust for the Right Job
Estate Planning
Three Reasons Why You Need an Estate Plan
As you are going through life handling your day-to-day responsibilities, estate planning may never cross your mind. Indeed, few people are sitting around contemplating their own mortality. At the same time, you probably don't spend much time thinking about damage to your home or car, but you carry insurance. The point is, you never know what lies in store around the next twist in the road. Everyone passes away at some point in time, and there are those who die before their time. You should … [Read more...] about Three Reasons Why You Need an Estate Plan
Slight Estate Tax Exclusion Adjustment Added for 2016
The federal estate tax can be a factor for you if you will be transferring a significant amount of wealth to your loved ones. This tax is only a factor for high net worth individuals because there is a credit or exclusion that is relatively high. The exclusion is the amount that you can transfer tax-free. Any portion of your estate that exceeds the amount of this exclusion can be subject to taxation. Before we proceed, we should point out the fact that there is an unlimited marital deduction. … [Read more...] about Slight Estate Tax Exclusion Adjustment Added for 2016
Inheritance Planning: Protect Your Children After Remarriage
When you are divorced as a parent, and you decide to get remarried, a lot of things are probably going to go through your mind from an estate planning perspective. You certainly have to revise your existing inheritance plan, and you may have questions about the ideal way to provide for everyone that you love. If you are ever in this position, you will indeed have a lot on your plate. Without question, you want to protect your children come what may, but you should also consider your own … [Read more...] about Inheritance Planning: Protect Your Children After Remarriage
What Is a Stretch IRA?
When you are looking ahead toward your senior years, you may contribute into an individual retirement account. An IRA can definitely help you accumulate a nest egg that you can draw from during retirement. However, an individual retirement account can also be part of your estate plan under certain circumstances. There is a concept called the stretch IRA that can be of value when you are planning your estate. Before we look at the stretch IRA, we will provide some general information about … [Read more...] about What Is a Stretch IRA?
An Estate Tax Strategy for Appreciable Assets
They say that you should use the right tool for the right job, and this old saying applies to the field of estate planning. There are numerous different asset transfer vehicles in the estate planning toolkit, and you can optimize your position if you make the right choices. Estate tax efficiency is something that is very important for high net worth families. The federal death tax comes with a 40 percent rate that can take a huge bite out of your legacy. If you are married to an American … [Read more...] about An Estate Tax Strategy for Appreciable Assets
How Is a Living Trust Funded?
The legal device called a revocable living trust may be the ideal centerpiece of your estate plan. You do not have to be extremely wealthy to reap the benefits, and this is something that many people do not understand. In legal terms, if you were to establish a living trust, you would be called the grantor or settlor. There is a trustee who would take care of the trust administration duties, and there would also be beneficiaries who would receive monetary distributions from the trust. You … [Read more...] about How Is a Living Trust Funded?
Is There Just One Type of Will?
When you think about estate planning, you may feel as though the process involves a choice between a will or a trust of some kind. Many people are under this impression, but even if you use a trust, you should be aware of the fact that there are different types of wills. The last will that you can use as an asset transfer vehicle is not the only type of will that can be used when you are planning your estate. Living Wills If you have a revocable living trust, you would still want to have … [Read more...] about Is There Just One Type of Will?
Is an Inheritance Taxable Income?
When you are thinking about the position that your loved ones will be left in after you are gone, you would naturally wonder about taxation. Will your family members be forced to report their inheritances as taxable income? A simple answer to this question is no. An inheritance is not considered to be taxable income, but there are a number of things that you should take into consideration beyond this simple fact. Let's look at a few of them. Appreciated Assets The capital gains tax can … [Read more...] about Is an Inheritance Taxable Income?
Can I Leave Everything to My Spouse to Avoid the Estate Tax?
If you have looked into the subject, you may hear a general statement with regard to asset transfers between spouses. The surface statement would be that you are allowed to transfer an unlimited amount of property to your spouse free of the estate tax. In a broad sense, this is true, but there is a caveat, and there are intricacies to think about. We will look at the subject in this blog post. Marital Deduction The idea that you can transfer unlimited assets to your spouse free of … [Read more...] about Can I Leave Everything to My Spouse to Avoid the Estate Tax?
