You may not spend a lot of time thinking about estate planning. In the back of your mind, you may feel as though you should create a last will someday, but you may not take it any further than that. This is a risky way to approach the subject of estate planning. In fact, there are some things that you may not have thought about, and we will take a look at some of them in this blog post. Estate Tax There is a federal estate tax that carries a 40 percent maximum rate, and no, that is not … [Read more...] about Estate Planning: What Do I Need to Know?
Estate Planning
Is Estate Planning Strictly for Senior Citizens?
The average life expectancy in the United States is between 78 and 79 years at the present time. Clearly, most people expect to live for at least this long, but this does not mean that estate planning is strictly for senior citizens. People take precautions of all kinds. You may have insurance on your car and your home, even if they are paid for, because you want to make sure that you are covered if anything happens. Younger adults who are probably not going to get seriously ill carry health … [Read more...] about Is Estate Planning Strictly for Senior Citizens?
Why Would I Use a Trust Instead of a Will?
You may not give estate planning a lot of thought. When you do, the document called a last will may come to mind. When you get ready to take action, you can just draw up a last will, and you will be good to go. In reality, this is an oversimplification. In many instances, a trust would be a better choice. Let's look at some of the reasons why you may want to use a trust instead of a will. Efficient Asset Transfers When a will is used, it must be admitted to probate. The court supervises … [Read more...] about Why Would I Use a Trust Instead of a Will?
Are There Different Types of Charitable Trusts?
There is nothing more rewarding than charitable giving. Clearly, you gain personal satisfaction when you are in a position to help worthy causes and institutions that are meaningful to you. At the same time, you may be able to gain tax advantages when you indulge your philanthropic urges. A charitable trust of some kind could be part of the plan. Let's look at some of the different types of charitable trusts that are used in the field of estate planning. Charitable Remainder Trusts A … [Read more...] about Are There Different Types of Charitable Trusts?
Do Assets in a Living Trust Get a Step-Up in Basis?
A revocable living trust is an estate planning tool that provides certain benefits, but things essentially stay the same when you convey assets into this type of trust. The trust creator is called the grantor of the trust, and the trustee is the trust administrator. The grantor will typically act as the trustee throughout his or her life. If you create this type of trust, you still control the assets that you conveyed into the trust. You are retaining incidents of ownership in legal … [Read more...] about Do Assets in a Living Trust Get a Step-Up in Basis?
How Do I Change My Living Trust?
Before we look at the specific question that serves as the title of this entry, we should explain the value of living trusts for those who do not fully understand why you may want to use this type of trust. A living trust is an estate planning tool that provides a great deal of flexibility and control. You can act as the trustee while you are living, so you administer the trust throughout your life. As the creator of the trust, you can also serve as the beneficiary initially. There would … [Read more...] about How Do I Change My Living Trust?
Who Administers My Living Trust When I Die?
The living trust is an estate planning tool that is often overlooked by people who assume that a last will is the only way to go. However, you gain many benefits when you use a living trust, even if you are not wealthy, so you should be aware of the facts before you make any final decisions. Versatility and Control People sometimes think that when you create a trust, you are doing so with a note of finality. The idea is that everything is going to be permanently set in stone, and you will … [Read more...] about Who Administers My Living Trust When I Die?
What Is Included in My Estate Plan?
The ideal estate plan will vary on a case-by-case basis. Different types of documents can be utilized, and what is right for one person will not be suitable for the next. Though estate planning is a personalized affair, there are some basic bases that everyone must cover. Let's look at the rudiments of a typical estate plan. Inheritance Distributions Clearly, when you devise your estate plan, you leave behind inheritances to your loved ones. You have options with regard to the legal … [Read more...] about What Is Included in My Estate Plan?
What Is a Self-Proving Will?
When you use a will as your asset transfer device, you name an executor or personal representative to handle the business of the estate after your passing. The executor cannot look at the instructions, follow them, and act independently. The will must be admitted to probate before the executor can distribute assets. During probate, the court determines the validity of the will. We practice law in the state of Indiana. For a will to be valid in our state, the testator must sign the will in the … [Read more...] about What Is a Self-Proving Will?
What Are the Gift Tax Exclusions?
They say that no good deed goes unpunished. Most people think that gift giving is a very good thing, but the tax man sees it as an opportunity to take his share. There is a federal gift tax in place, and you should be aware of this tax when you are making financial decisions. Fortunately, there are some gift tax exclusions that allow you to transfer a certain amount before the gift tax would become applicable. One of them is the annual per person gift tax exclusion. You can give up to $14,000 … [Read more...] about What Are the Gift Tax Exclusions?
