Some people oversimplify the process of estate planning. They reduce the endeavor to the creation of a last will, and they leave it at that. In reality, there are a lot of things to take into consideration. There are many different ways to facilitate future asset transfers. A last will may not be the best choice for you. If you have a last will, you lose a good bit of control. The assets would be divided like slices of a pie, and the inheritors would assume direct … [Read more...] about Estate Planning: Is My Last Will Enough?
Estate Planning
What Is a Charitable Remainder Trust?
When you are planning your estate, you may want to consider your broader legacy. Giving back can be a very powerful thing, especially when you are thinking about how you will be remembered after you pass away. Acts of charitable giving can be rewarding on a personal level, and you can sometimes gain tax benefits when you give to charitable causes. There are various different ways that you can give to organizations and causes that are meaningful to you. Some people create private … [Read more...] about What Is a Charitable Remainder Trust?
What Is the Generation-Skipping Transfer Tax?
People who have been able to accumulate a significant store of wealth should be very aware of federal transfer taxes. In this post we will look at an often overlooked tax called the generation-skipping transfer tax. However, to understand the generation-skipping transfer tax, you need some background information about the the estate tax and the gift tax. Federal Death Tax The federal estate tax carries a 40 percent maximum rate, and this is an attention-getting number. There is … [Read more...] about What Is the Generation-Skipping Transfer Tax?
What Is An ILIT?
What Is An ILIT from Paul Kraft The acronym ILIT stands for an irrevocable life insurance trust.This type of trust can be useful if you are exposed to the federal estate tax. Learn more about irrevocable life insurance trust (ILIT) in Indianapolis in this presentation. … [Read more...] about What Is An ILIT?
What Is a Step-Up in Basis?
You may be concerned about taxes when you are planning your estate. What forms of taxation will your loved ones face after you pass away? In this post we will provide answers, and we will ultimately focus on the capital gains tax and the step-up in basis. Income Tax It can seem as though any income that you receive from any source should be reported on your annual income tax return. In fact, this is not the case when it comes to inherited assets. If you receive an … [Read more...] about What Is a Step-Up in Basis?
Are Trusts Only For the Rich?
There are certain myths that circulate when it comes to estate planning, and you can overlook viable solutions when you buy into these misconceptions. One of these notions is the idea that all trusts are only useful for those who are very wealthy. Let's look at the facts. Estate Tax Efficiency and Asset Protection People who have been very successful from a financial standpoint may be exposed to the federal estate tax. The federal estate tax has a $5.34 million exclusion in 2014. If the … [Read more...] about Are Trusts Only For the Rich?
When Will My Heirs Receive Their Inheritances?
There are various different ways to get assets into the hands of your loved ones after you pass away. The most commonly utilized estate planning document is the last will. You may assume that the heirs to your estate receive their inheritances right after you die when you use a last will to state your final wishes. Unfortunately, things don't happen very quickly when you use a last will to facilitate the distribution of your personally held assets. Before inheritances can be distributed, the … [Read more...] about When Will My Heirs Receive Their Inheritances?
Can I Just Buy Estate Planning Documents Online?
The Internet makes it relatively easy to do various different things for yourself. There are instruction booklets that you can buy, and you can visit forums to get advice from others. You can even buy worksheets and downloads online that guide you as you create estate planning documents. While you can purchase these documents, you may want to take pause. There are various different reasons why do-it-yourself estate planning is risky business. Choosing the Right … [Read more...] about Can I Just Buy Estate Planning Documents Online?
What Is the Most Important Estate Planning Document?
A comprehensive estate plan will include a number of different legally binding documents. While there are always those who are looking to prioritize, this is simply not necessary. You have estate planning objectives, and it takes certain documents to bring your wishes to fruition. There is no need to look for a pecking order. Let's look at some important estate planning documents that could be part of a well constructed estate plan. Transferring Assets: The Last … [Read more...] about What Is the Most Important Estate Planning Document?
What Happens to a Living Trust When One Spouse Dies?
To a large extent, you control the outcome when you plan your estate. This is what it is all about. Legally binding documents do not rule you; it is the other way around. You utilize specific documents to facilitate the fruition of your wishes. With this in mind, let's look at the question that serves as the title of this post. Separate Living Trusts for Married Individuals When you create a living trust, you have a great deal of control over the terms of the … [Read more...] about What Happens to a Living Trust When One Spouse Dies?
