People are sometimes remiss when it comes to estate planning. They put it off for various different reasons. One of the primary reasons is the idea that there will always be time to take care of it later on. Younger adults often adopt this line of thinking. In fact, it could be argued that estate planning is more important for younger adults than it is for older people, especially when minor children are involved. With this in mind let's look at the nomination of a guardian. Who Would Care … [Read more...] about What Is the Nomination of a Guardian?
Estate Planning
How Can I Leave My Estate to My Spouse Tax Free?
It can seem as though you are taxed in some way every time you receive an influx of income. You may also be taxed when you give away assets to others, because there is a gift tax, and there is an estate tax. Given the above, it would be logical to assume that you have to take some special steps to leave assets to your spouse tax-free. In fact, this is not the case. Most People Are Exempt From Estate and Gift Taxes There is a gift tax and an estate tax. However, most people don't pay … [Read more...] about How Can I Leave My Estate to My Spouse Tax Free?
Revocable Living Trusts in Indianapolis: Who Can Be the Trustee?
People are sometimes under the mistaken impression that trusts are only useful for wealthy people. Some types of trusts do accomplish objectives that are held by high net worth families. However, there are other trusts that really wouldn't satisfy these objectives. One of them is the revocable living trust. People who are extraordinarily wealthy have to be concerned about the estate tax. Many of them are also going to prioritize asset protection. A revocable living … [Read more...] about Revocable Living Trusts in Indianapolis: Who Can Be the Trustee?
Can You Give Tax-Free Gifts to Your Children?
Estate planning involves arranging for gifts to be given after you die. If you do arrange for assets to be transferred to your loved ones after you die, these transfers may be subject to the federal estate tax. This raises a logical question: can you give tax-free gifts while you are living and avoid the estate tax? Federal Gift Tax The estate tax was enacted in 1916. Shortly after this, people who were exposed to the tax started giving gifts while they were living to … [Read more...] about Can You Give Tax-Free Gifts to Your Children?
Does Probate Present Any Difficulties?
The process of probate is something to consider when you are planning your estate. To understand probate, look at your estate as a business entity of sorts. There are various different parties that have an interest in this entity. Probate gives these parties the opportunity to conduct business with the estate. When you think about parties that have an interest in an estate, the heirs to the estate are certainly going to come to mind. However, they are not the only … [Read more...] about Does Probate Present Any Difficulties?
What Is a Payable on Death Account?
You may hear about the subject of probate avoidance when you are looking around for information about estate planning. Some probate avoidance strategies are more effective than others. With this in mind, let's look at payable on death accounts. POD and TOD Accounts Payable on death accounts are often referred to as POD accounts. You may also see the term TOD account. This stands for a transfer on death account. These are essentially two different names for the … [Read more...] about What Is a Payable on Death Account?
What Is an Estate Executor?
Planning for the inevitable involves the execution of legally binding documents. Most people use a last will to state their final wishes. However, you should also consider the human element. Someone has to gain an understanding of these written wishes and implement a plan of action. This individual is the estate executor. Probate Process The executor of an estate has a lot of real-world tasks to complete. One of them will be the admittance of the will to … [Read more...] about What Is an Estate Executor?
What Is the Annual Gift Tax Exclusion?
When you are interested in wealth preservation you should know the facts about transfer taxes. We have a federal estate tax, and most people are aware of it. We also have a federal gift tax that may not be on your radar. Gifts Are Taxable The estate tax was originally enacted in 1916. Wealthy people immediately started giving large gifts to their heirs to avoid the estate tax. The enactment of the gift tax a few years later closed this window of opportunity. Why … [Read more...] about What Is the Annual Gift Tax Exclusion?
Why Should I Have a Living Trust in Indianapolis?
If you don't know a lot about estate planning you may be under the impression that you should use a last will to arrange for the distribution of your property after you die. This may be a perfectly good choice. However, before you make a final decision you should consider the possibility of using a revocable living trust instead. Probate Let's say that you retain direct personal possession of your property through to the time of your death. You arrange for its transfer … [Read more...] about Why Should I Have a Living Trust in Indianapolis?
Federal Estate Tax Exclusion Adjusted
If you are interested in wealth preservation you need to understand the law of the land when it comes to the federal estate tax. Estate planning is a dynamic endeavor like any other type of financial planning. Things change, and you should always be aware of relevant changes when they come down the pike. With this in mind we would like to pass along some news that has recently been released by the Internal Revenue Service. First, let's take a look at the estate tax and the … [Read more...] about Federal Estate Tax Exclusion Adjusted
