A living trust is an estate planning device that you should explore when you are devising your estate plan. There are numerous different advantages that these trusts provide, and one of them is the ability to leave behind specific instructions that the trustee must follow after your passing. Spendthrift Protections You may not feel comfortable about leaving direct, lump sum inheritances to people in your family who are not good money managers. If your spendthrift heirs were to burn through … [Read more...] about Can a Living Trust Provide Spendthrift Protections?
Estate Planning
Is Every Estate Subject to the Estate Tax?
When you are looking into the subject of estate planning, you may hear about the federal estate tax and assume that you should be concerned. If you are exposed, you should be extremely concerned, because this death tax carries a 40 percent maximum rate. Fortunately, most people are not exposed to the federal estate tax, because there is a credit or exclusion that is relatively high. The exclusion is the amount that you can transfer before the estate tax would be applicable. It is updated each … [Read more...] about Is Every Estate Subject to the Estate Tax?
What Is Digital Estate Planning?
When you are engaged in the process of estate planning, you should consider all of the smaller details. Executing legal documents is the obvious part, but you have to be aware of the process of estate administration. Someone is going to have to attend to the details, and this person is going to need a good bit of relevant information. Some things are relatively obvious. You have to give your estate administrator access to hard copy documents that are going to be relevant to the process, so … [Read more...] about What Is Digital Estate Planning?
Is My Home Part of My Taxable Estate?
People sometimes hear things about estate planning, and they go forward with incomplete information. This can lead to assumptions that yield negative consequences. There are those who embrace the idea that the federal estate tax is only relevant to people who are extremely wealthy. It is true that there is a relatively high credit or exclusion. For the rest of the 2015 calendar year, the exclusion is $5.43 million. There are annual adjustments to account for inflation, … [Read more...] about Is My Home Part of My Taxable Estate?
What Are the Drawbacks of Joint Tenancy?
They say that all that glitters is not gold, and this can enter the picture when it comes to so-called "simple solutions." Something can sound like a good idea on the surface, but when you dig deeper, you can see that the disadvantages could outweigh the advantages. With this in mind, we will look at the drawbacks of joint tenancy in this blog post. Shared Ownership The best way of explaining joint tenancy would be to provide an example. That say that you have one son, … [Read more...] about What Are the Drawbacks of Joint Tenancy?
What Qualities Should I Look for in an Executor?
If you use a will to facilitate asset transfers after you pass away, you should nominate an executor. This is the person who will handle the estate administration chores after your passing. When you think about an estate representative, you may look upon the role as a somewhat ceremonial, honorary one. In reality, there are many different important real-world tasks that the executor must handle to make sure that your wishes become reality. The administration of an estate does not … [Read more...] about What Qualities Should I Look for in an Executor?
Should I Change My Living Trust if I Acquire Assets?
When you hear the word "trust," you may assume that it implies a sense of permanence. This can be intimidating, but all trusts are not created equal. There is a type of trust called a revocable living trust that gives you a great deal of flexibility, and these trusts can provide value for a wide range of people. A revocable living trust is a very versatile estate planning document, and this versatility is part of the appeal. Once you convey assets into the trust, things are not … [Read more...] about Should I Change My Living Trust if I Acquire Assets?
Living Trust Seminars Scheduled for April
The legal device called a last will or last will and testament is commonly used in the field of estate planning. If you are not aware of all the facts, you may naturally assume that you should use a last will when you are devising your estate plan. A last will can be effective under some simple circumstances, but before you make any final decisions, you should understand some things about living trusts. Contrary to popular belief, you don't have to be a millionaire to benefit from the … [Read more...] about Living Trust Seminars Scheduled for April
Can a Trust Provide Tax Efficiency?
Tax efficiency can be an important consideration when you are positioning yourself financially. This comes into play throughout your life, and it is also a factor when you are planning your estate. Certain types of trusts can be effective to provide tax efficiency under some circumstances, and there are other types of trusts that would not provide tax efficiency. Let's look at the facts. Federal Estate Tax There is a federal estate tax that high net worth families must … [Read more...] about Can a Trust Provide Tax Efficiency?
What Is the Difference Between a Living Will and a Living Trust?
There can be some confusion with regard to estate planning terms that sound similar. We try to clear some things up on our blog from time to time, and with this in mind, we will look at the difference between living wills and living trusts in this post. Advance Directive for Health Care Most people have heard of the estate planning document called a last will or last will and testament. Since this type of will is used to transfer property, many people assume that a living will does the … [Read more...] about What Is the Difference Between a Living Will and a Living Trust?
