If you have a large estate and want to start giving it away, but want to limit your tax liability, consider using the annual gift tax exclusion. What that means is that you can give up to $13,000 per person per calendar year and neither you nor the recipient has to pay taxes on it. So, you can give $13,000 per year to 10 people or 1,000 people and there will be no taxes. And you can do that year after year. (The amount of the exclusion is increased from time to time.) You and your spouse can … [Read more...] about Annual Gift Tax Exclusion: Tax Free Money Zone
Estate Planning
Why You Should Consider Advanced Estate Planning
Basic estate planning is fine if your estate is simple and doesn’t require a great deal of arrangements. If, however, your estate has any special circumstances, you may want to consider advanced planning. It can help ease the estate settlement process for your family in three ways. Protect Your Belongings Through features such as Irrevocable Trusts, Advanced Estate Planning offers protection for your belongings. Asset protection keeps your retirement funds and your property safe from being … [Read more...] about Why You Should Consider Advanced Estate Planning
Ease Estate Settlement for Your Loved Ones
Settling an estate takes time and money. You can ease the settlement process for your own estate by planning ahead. Here are three ways to help your family member’s navigate your affairs when you pass away. Safe Storage of Documents Upon your death your family will have to gather up all of your estate documents and meet with an attorney. You can make this process easier by storing your documents in a safe but easy to find location. Some common storage places include: safe deposit boxes, … [Read more...] about Ease Estate Settlement for Your Loved Ones
When to use a Q-Tip
When do you use a Q-Tip? We are not talking about the cotton swab but a Trust that can be used to accomplish your estate planning goals. You might want to consider establishing a Q-Tip, or Qualified Terminable Interest Trust, if you are: Concerned about your spouse remarrying and your money benefiting the new spouseWorried your spouse will not pass on your money to your childrenAfraid that creditors will attach your surviving spouse's propertyConcerned your spouse is unsophisticated about … [Read more...] about When to use a Q-Tip
Pet Trusts Ensure Your Animals' Well Being
If you worry about what will happen to your pets should you die , you are not alone. Leona Helmsley, New York real estate magnate, dubbed “The Queen of Mean” because of how she treated her employees, died in 2007 and left roughly $12 million to her dog, Trouble. A judge later reduced that amount to $2 million. Most of our pets, even the spoiled ones, could get by on a lot less. Thanks to a change in the 1990 Uniform Probate Code, most states now allow you to provide for pets in estate … [Read more...] about Pet Trusts Ensure Your Animals' Well Being
Bequeathing the Family Vacation Home
It’s hosted countless get-togethers with family and friends. Your grandchildren loved spending summers there; diving into the lake, roasting marshmallows and discovering just how fascinating nature can really be. You remember the first time your grandson caught a fish and the first time he caught poison ivy. In fact, many of your most treasured memories happened there. The family vacation home holds a wealth of memories and traditions - traditions your family members will likely want to … [Read more...] about Bequeathing the Family Vacation Home
Did Your Loved One Have Life Insurance?
When a loved one passes away, we’re often left with the task of sorting through mail and files to locate the important papers. But what happens if you can’t find everything you’re looking for? If you suspect that your loved one had a life insurance policy or an annuity but can’t find the documentation, you may have a difficult task ahead of you. Finding an outstanding life insurance policy isn’t simple because unlike a pension, there is no place where these policies are registered so that … [Read more...] about Did Your Loved One Have Life Insurance?
Estate Planning Guide for the Newly Divorced
A divorce, whether acrimonious or amicable, is an emotionally and, oftentimes, financially devastating life event. A Separation Agreement or final Decree of Divorce stipulates division of assets, child custody, visitation and support and alimony payments. However, there are other things you need to do to prevent your ex-spouse creating further financial difficulties or receiving assets if you die. If you have minor children, a Last Will and Testament or a Living Trust is essential. These … [Read more...] about Estate Planning Guide for the Newly Divorced
Passing On A Legacy – Preserve Your Family Heirlooms
Family heirlooms may be your only connection to past generations. You might possibly have possessions that once belonged to your great-grandparents or, even, great-great-grandparents. It is a privilege to hold jewelry your great-grandmother wore, a journal your great-great-uncle wrote or early photographs taken by your grandfather. These family heirlooms deserve the honor of preservation so future generations have the same opportunity to enjoy their heritage. Treasures that have been … [Read more...] about Passing On A Legacy – Preserve Your Family Heirlooms
Solvent vs. Insolvent: What's the Difference?
When your estate gets to probate court, it can be classified in one of two ways: solvent or insolvent. Solvent means that there are still assets left over after all the debts have been paid. These assets are then distributed to the heirs as outlined in your Will or if there is no Will, in accordance with state law. An insolvent estate on the other hand, is one where the debts exceed the value of the assets. In this instance, all the assets are sold off but cannot completely cover the … [Read more...] about Solvent vs. Insolvent: What's the Difference?
