A revocable living trust can be a good choice if you want to maintain control of your assets while you are living as you simultaneously facilitate fast and effective postmortem asset transfers. As the person creating the trust, you can initially act as the trustee. The trustee is the person who handles the business of the trust, so you are the controller while you are alive and well. You can also act as the beneficiary initially, so you are free to receive distributions from … [Read more...] about How Do I Fund My Revocable Living Trust?
Estate Planning
Attend a January Living Trust Seminar
You should understand the value of revocable living trusts when you are making estate planning decisions. These trusts can be a good choice for many people, even those who are not wealthy, but they are often overlooked. Let's look at some of the facts. Probate Avoidance The person who creates a revocable living trust would typically act as the trustee and the beneficiary initially. As a result, control is not surrendered, and the trust maker has the ability revoke the trust … [Read more...] about Attend a January Living Trust Seminar
LGBTQ Estate Planning: Are You Prepared?
Laws that are relevant to estate planning are always changing, and this is why you should be aware of the current state of affairs. Clearly, it is difficult for laypeople to remain up-to-date, and this is one of the reasons why you should develop an ongoing relationship with an estate planning attorney. When it comes to laws that impact estate planning, there have certainly been some changes that are relevant to members of the LGBTQ community. Legal wrangling has been going on for … [Read more...] about LGBTQ Estate Planning: Are You Prepared?
What Is Capital Gains Tax?
There are so many taxes out there it is hard to keep track of all of them. Without question, you should understand the taxes that can be applicable when you are planning your estate. One tax that can come into play is the capital gains tax, and we will look at the details in this post. Realizing a Gain When you own assets that have appreciated, the capital gains tax is looming. The gains are taxable, but you do not have to pay the capital gains tax until you realize a … [Read more...] about What Is Capital Gains Tax?
Can I Provide for My Dog When I Plan My Estate?
If you are a younger dog owner, you may not be too concerned about providing for your canine companion in your estate plan. In truth, you could gain a lot of peace of mind if you do include your pet, because you never know what the future holds. This being stated, pet planning can be very relevant for senior citizens. Imagine the life situation of a senior who has lost a spouse along the way. The children are grown, and retired people don't have daily contact with … [Read more...] about Can I Provide for My Dog When I Plan My Estate?
Inflation Adjustment Applied to Estate Tax Exclusion
You can transfer unlimited assets to your spouse tax-free, but anything that you want to transfer to others is potentially subject to the death tax. The federal estate tax exclusion is the amount that you can transfer tax-free. The exclusion has changed a great deal over the years. Back in 2009, the federal estate tax exclusion was $3.5 million, and the maximum rate was 45 percent. Due to a provision contained within the Bush era tax cuts, the estate tax was repealed for the 2010 … [Read more...] about Inflation Adjustment Applied to Estate Tax Exclusion
Does a Revocable Living Trust Reduce Income Tax Responsibility?
Revocable living trusts are very useful on a number of different levels. However, there is no estate planning device that is an absolute cure-all. With this in mind, let's look at these trusts in detail. Probate Avoidance The biggest benefit that you derive when you create a revocable living trust is the avoidance of the probate process. You probably want your heirs to receive their inheritances in a timely manner. If you use a last will to transfer your personally … [Read more...] about Does a Revocable Living Trust Reduce Income Tax Responsibility?
Take Action During National Estate Planning Awareness Week
When organizations conduct surveys that measure the estate planning preparedness of American adults, the results are disheartening. Everyone is going to pass away, but perhaps surprisingly, most people do not plan ahead for something that is definitely going to happen. People often procrastinate because of a lack of awareness. They don't understand why planning is important, and they assume that things will just naturally fall into place. In reality, things don't work that … [Read more...] about Take Action During National Estate Planning Awareness Week
Should I Use a Corporate Trustee?
If you are not extremely wealthy, you may assume that you should use a last will as a vehicle of asset transfer rather than a trust. This is a popular misconception, but it is just that, a misconception. There are different types of trusts. Indeed, there are trusts that are used by high net worth individuals who are exposed to the federal estate tax. This tax is potentially applicable on asset transfers that exceed $5.34 million. (This is the figure that is in place for … [Read more...] about Should I Use a Corporate Trustee?
Are Estate Tax Laws Subject to Change?
People who have enjoyed a great deal of financial success are often faced with estate planning challenges. You may naturally assume that you can leave assets to your loved ones free of taxation. After all, you paid many different taxes throughout your life. However, whether it is fair or not, there are taxes on large asset transfers in the United States. Transfer Taxes We have a federal estate tax, and it carries a maximum rate of 40 percent at the present time. The estate … [Read more...] about Are Estate Tax Laws Subject to Change?
