People sometimes make assumptions with regard to estate planning, and they make decisions that ultimately yield negative results. In this blog post, we will look at five estate planning mistakes that people often make when they do not understand all of the facts. 1.) Do-it-Yourself Estate Planning There are websites on the Internet that sell do-it-yourself legal documents, including last wills and living trusts. While it is not against the law to create your own estate planning documents, … [Read more...] about Top Five Estate Planning Mistakes to Avoid
Estate Planning
What Is Sandwich Generation Planning?
There are role reversals within families over the years. When you are young, you depend on your parents for everything, and there is still some sense of dependency even after you start to become a young adult. However, when you become a parent in your own right, you are the one that has someone depending on you. At first, your parents will probably be fully capable of handling all of their own affairs. However, at some point, they may need help with their activities of daily living while your … [Read more...] about What Is Sandwich Generation Planning?
Estate Planning: A Look at the Consequences of Inaction
There are people who go through life without an estate plan, and there are various reasons for this inaction. Sometimes individuals assume that there are laws in place that will magically facilitate efficient asset transfers, regardless of the circumstances. In fact, this is simply not the case. Even if your situation is relatively simple and straightforward, it is unlikely that the outcome would be consistent with your true wishes if you die without any estate planning documents (this is the … [Read more...] about Estate Planning: A Look at the Consequences of Inaction
Can I Change My Living Trust Beneficiaries?
People sometimes fail to act when it comes to estate planning, because they are not entirely certain about the long-term circumstances that will come about as time goes on. They do not want to get locked into decisions that they made on a given day, and this is understandable. Most people are aware of the fact that they could create a new will if they decide to use a last will as an asset transfer vehicle. For this reason, they are reluctant to consider trust creation, because they are under … [Read more...] about Can I Change My Living Trust Beneficiaries?
What Information Do I Need to Create My Estate Plan?
There are websites on the Internet that contend that anyone can create an estate plan using generic, boilerplate documents that they will sell you. In reality, there is a lot of information that you need to digest if you want to construct an estate plan that ideally suits your needs. Your financial status is going to be an important part of the equation. The federal estate tax is a factor for high net worth families, so you have to inventory your assets so that you know exactly where you … [Read more...] about What Information Do I Need to Create My Estate Plan?
How Is My Last Will Handled After I Die?
People sometimes harbor misconceptions about last wills. It can seem as though the executor or personal representative that you name in the will can distribute inheritances quickly and easily after your passing when you state your final wishes in a last will. In reality, this is not the way that it works. The executor would be forced to admit the last will to probate, and the court would oversee the administration of the estate. We should point out the fact that a very small estate could … [Read more...] about How Is My Last Will Handled After I Die?
Are Life Insurance Proceeds Subject to the Estate Tax?
If you are in possession of a considerable store of wealth, you should be well aware of the potential impact of the federal estate tax. Here in Indiana we do not have a state-level estate tax to contend with, but the federal death tax looms large for high net worth families. Asset transfers to your spouse (assuming your spouse is an American citizen) are not taxable under any circumstances, but transfers to anyone else, even your children, are potentially subject to taxation. The first $5.43 … [Read more...] about Are Life Insurance Proceeds Subject to the Estate Tax?
What Are the Top Three Estate Planning Priorities?
There are three rather subtle estate planning priorities that many serious minded people are concerned about, and it is instructive to learn about them. You may naturally assume that taxation is at the top of the list, but in fact, estate taxes do not impact most people. The federal estate tax carries a $5.43 million credit or exclusion. This is the amount that can be transferred before the estate tax would kick in, and clearly, most people have not accumulated this type of wealth. One … [Read more...] about What Are the Top Three Estate Planning Priorities?
How Often Should I Review My Estate Plan?
When you engage in any type of financial planning throughout your life, you invariably react to ever changing circumstances. Your own financial capabilities may evolve over the years, and of course, market conditions are always going to be in flux. Unfortunately, many people do not apply this logic to the subject of estate planning. They put an estate plan in place, they put the documents in a lock box, and they forget about the matter. In reality, estate planning should be seen as an … [Read more...] about How Often Should I Review My Estate Plan?
Should I Download Estate Planning Documents Off the Internet?
People are often willing to take on DIY projects. This has always been the case, but you can now find resources on the Internet that can provide useful information. In fact, there are websites that allow you to download estate planning documents. You fill in the blanks on these boilerplate estate planning documents, and you are supposed to be good to go. This could be described as an oversimplification. First of all, when you think about estate planning documents, you may think about a last … [Read more...] about Should I Download Estate Planning Documents Off the Internet?
