There are different trusts that are used to accomplish varying objectives. Sometimes people paint with a broad brush because they have a lack of information. In this post we will look at revocable living trusts in Indianapolis and wealth preservation. Revocable Living Trust in Indianapolis A revocable living trust in Indianapolis is just that, revocable. After you create the trust you are free to revoke or rescind it at any time. Assets that you have conveyed into … [Read more...] about Will a Revocable Living Trust in Indianapolis Protect Family Wealth?
Taxes
Do I Pay Taxes When I Inherit Money?
The matter of taxation is logically going to enter your mind if you are inheriting money. Do you have to report your inheritance as income when you file your annual income tax return? In general, the answer to this question is no, assuming there is no appreciation to take into account. If you inherit appreciable resources there are tax implications. This is a somewhat complicated subject that you should discuss with a licensed estate planning attorney. Other Types of … [Read more...] about Do I Pay Taxes When I Inherit Money?
Deadline Extended for Estate Tax Exclusion Portability Opt-In
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was passed in December of that year. Among other things, it made the federal estate tax exclusion portable between spouses. Portability was made permanent when the Taxpayer Relief Act of 2012 was passed. What Is Portability? Portability is the ability of a surviving spouse to use the estate tax credit or exclusion that was afforded to his or her deceased spouse. Prior to the 2011 calendar … [Read more...] about Deadline Extended for Estate Tax Exclusion Portability Opt-In
What Is a Qualified Personal Residence Trust?
When you are planning your estate as a person who has been financially successful you should be well aware of the looming specter of the federal estate tax. This death levy carries a 40 percent maximum rate. The amount of the exclusion in 2014 is $5.34 million. The exclusion or credit is the amount that you can transfer free of taxation. If you intend to transfer more than $5.34 million to your heirs you should consider tax efficiency strategies. When you are calculating the overall … [Read more...] about What Is a Qualified Personal Residence Trust?
Consider Estate Plan Review in 2014
Many people procrastinate before they put an initial estate plan in place. Once they do take action, they put the documents in a lock box somewhere and forget about them. Inertia sets in, and that pattern of procrastination resumes. Estate planning should actually be viewed as an ongoing, dynamic process. Estate planning is a form of financial planning. It is an extension of the financial planning that you have done throughout your life. When you are managing your … [Read more...] about Consider Estate Plan Review in 2014
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?
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?
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?
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
Should I Use My Unified Exclusion While I'm Still Alive?
There is a federal estate tax in the United States, and theoretically it is applicable to everyone. However, most people don't pay the estate tax because there is a federal estate tax exclusion. In 2013, the amount of this exclusion is $5.25 million. After the enactment of the American Taxpayer Relief Act of 2012, this exclusion amount is said to be permanent, but there are inflation adjustments applied annually. Therefore, you can expect to see an exclusion that is a little bit … [Read more...] about Should I Use My Unified Exclusion While I'm Still Alive?
