When you start to plan your estate in earnest, you may wonder if you have to file an estate tax return. You do not have to file an estate tax return unless the taxable value of your estate exceeds the amount of the federal estate tax exclusion. Let's look at the details so that you can proceed in an informed manner. Parameters of Federal Estate Tax Everyone does not have to file an estate tax return because there is a federal estate tax credit or exclusion. This is the line that … [Read more...] about When Is an Estate Tax Return Due?
Estate Planning
Revocable Living Trusts: What Is a Successor Trustee?
If you are not particularly wealthy, you may assume that you should use a last will to facilitate the transfer of your monetary assets after you die. You can go this route if you want to, but the postmortem process is something to take into consideration. The executor that is named in the will would have to admit the will to probate. This is a legal process, and it comes with a number of pitfalls. Probate can be costly, it is time-consuming, and probate records are available … [Read more...] about Revocable Living Trusts: What Is a Successor Trustee?
What Is a Grantor Retained Annuity Trust?
Estate planning takes on an added layer of complexity when you are faced with federal estate tax exposure. To determine your position relative to the estate tax, you must compare the value of your estate to the federal estate tax credit or exclusion. For the rest of 2014, the federal estate tax exclusion stands at $5.34 million. You can transfer this much tax-free, but transfers that exceed this amount are potentially subject to the death tax and its 40 percent maximum … [Read more...] about What Is a Grantor Retained Annuity Trust?
When Would I Create a Special Needs Trust?
There are numerous different ways to provide for your loved ones when you are planning your estate. It is important to gain an understanding of all of your options so that you are proceeding the optimal fashion. It is possible to make mistakes that result in negative consequences, even though you have very positive intentions. With this in mind, we would like to look at the value of special needs trusts. Medicaid and Supplemental Security Income You may have a loved one … [Read more...] about When Would I Create a Special Needs Trust?
What Are the Advantages and Disadvantages of a Guardianship?
Before we get into the matter of adult guardianship, we should provide some background information about incapacity. Estate planning is clearly going to revolve around financial issues for the most part, but you should also consider the eventualities that you may face toward the end of your life. Incapacity Planning There are various different causes of incapacity. When people become physically ill they sometimes become unable to communicate, and this is one form of incapacity … [Read more...] about What Are the Advantages and Disadvantages of a Guardianship?
Who Can Act as an Agent Under a Power of Attorney?
In the legal field, a power of attorney can be used to appoint someone to make decisions on your behalf. Within the estate planning niche, durable powers of attorney are often used to account for the possibility of incapacity. Durable powers of attorney are used because they remain in effect if the grantor becomes incapacitated. Incapacity is quite common among elder Americans. There are various different causes of incapacity, some of them physical, and some of them mental. … [Read more...] about Who Can Act as an Agent Under a Power of Attorney?
Do I Lose Control of Assets in a Revocable Living Trust?
It is important to gain an understanding of the vehicles of asset transfer that you can utilize when you are planning your estate. There are those who have misconceptions, and you can look past viable solutions if you do not know all the facts. With this in mind, we would like to look at revocable living trusts in this post. Loss of Control? Some people are under the impression that you lose personal control of assets when you place them into a trust. That's the whole … [Read more...] about Do I Lose Control of Assets in a Revocable Living Trust?
Should I Create a Joint Tenancy With My Child?
When you are looking around for information about estate planning, you may hear about joint tenancy. There are always those who are looking for easy answers, and joint tenancy can seem like a simple solution on the surface. Joint tenancy is a somewhat fancy way of describing co-ownership. If you add someone to the title or deed of property that you own, this person would become a joint tenant. When you pass away in direct personal possession of property and you arrange for its … [Read more...] about Should I Create a Joint Tenancy With My Child?
Indianapolis Wealth Preservation: What Is a QDOT Trust?
Your estate plan should be custom crafted to suit your needs. Every family is different, and there is an ideal solution for every situation. With this in mind, let's look at the estate planning device called a QDOT trust. The acronym QDOT stands for a qualified domestic trust. This type of trust would be useful for a high net worth individual who is married to someone who is not an American citizen. Federal Estate Tax Parameters To understand the value of a QDOT trust you … [Read more...] about Indianapolis Wealth Preservation: What Is a QDOT Trust?
What Is Estate Tax Exclusion Portability?
It is important to understand the law of the land when it comes to the federal estate tax when you are planning your estate. Assets that you intend to transfer to your heirs are potentially subject to taxation. However, there is a federal estate tax credit or exclusion. Your estate would not be subject to the death levy if its value does not exceed the amount of the exclusion. The federal estate tax exclusion was set at $5 million for 2011, and there have been ongoing adjustments … [Read more...] about What Is Estate Tax Exclusion Portability?
