A revocable living trust is a good choice for people who would like to avoid probate. This is a legal process that an estate must pass through before the heirs receive their inheritances when a will is used to arrange for asset distributions. Why would you want to avoid this process? There are a few different reasons. One of them is the fact that probate is a public proceeding, and anyone can access the records. You may want your final affairs to be conducted … [Read more...] about Living Trust Provides More Than Probate Avoidance
Blog
Why Would You Want a Defective Trust?
If someone told you that you could work with an estate planning lawyer to create a defective trust how would you feel about that? Most people are automatically going to equate the term "defective" with something that is useless. In fact there is an estate planning device called an intentionally defective grantor trust that is in fact more effective than it is defective in practice. Some people have to take steps to gain estate tax efficiency. The estate tax exclusion is $5.25 … [Read more...] about Why Would You Want a Defective Trust?
Possible Estate Tax Hike in the Offing
The estate tax parameters were newly defined after the enactment of the American Taxpayer Relief Act of 2012. When you look back on the situation that was described as a path toward the fiscal cliff this precipice represented a plunge into a sea of tax increases and spending cuts. One of the taxes that would have went up was the estate tax. Under the laws as they existed throughout 2012 the top rate of the estate tax was going to rise to 55% in 2013 while the exclusion was reduced to … [Read more...] about Possible Estate Tax Hike in the Offing
Google Addresses Digital Estate Planning
Estate planning has taken on a different flavor during the digital age. We obviously exist and interact in the physical world, but most of us do the same in the digital world. As a result you must consider all of your online accounts when you are planning your estate. When you are engaged in the process of estate planning, you would do well to take stock of all of your assets and liabilities. You may well conduct a lot of business online so you must inventory your online … [Read more...] about Google Addresses Digital Estate Planning
Answers to Three Common Questions About Probate
Probate is a mystery to many people when they first start to look into the subject of estate planning. In an effort to clear the haze a bit we would like to answer three common questions about probate here. 1.) In a general sense, how would probate be defined? Probate is a legal process. The probate court in the jurisdiction within which a deceased individual passes away supervises the administration of his or her estate. 2.) What does this administration … [Read more...] about Answers to Three Common Questions About Probate
Retirement Planning: Revise and React
When you are a young adult you have a unique opportunity to develop a long-term financial plan that leads to a comfortable retirement. Clearly, the more time you have to save the more likely it is that you will be successful and ultimately reach your goals. Unfortunately, when people are young they may be more prone to live in the moment without thinking ahead toward the future. As a result, in many cases this opportunity is lost. Even those who did take the necessary steps may be … [Read more...] about Retirement Planning: Revise and React
Highest Court Considering Windsor Case
Because of provisions contained within Section 3 of the federal Defense of Marriage Act, marriages between people of the same sex are not recognized by the federal government. This is true regardless of where the marriages are in fact sanctioned. This has estate planning implications because there is an unlimited marital estate tax exemption. Heterosexual people who are married can leave any amount of money to their spouses without incurring any estate tax liability. Legally married … [Read more...] about Highest Court Considering Windsor Case
Giving Taxable Gifts? IRS Must Be Notified
Last year there was an incentive for people to give large gifts to their loved ones. The gift tax is unified with the estate tax, and in 2012 the unified exclusion was $5.12 million, and the maximum rate was 35%. Throughout 2012, the existing laws would have resulted in an increase in the top rate to 55% and a reduction in the exclusion to $1 million in 2013. Let's say that you had $5 million in total wealth. You could give substantial gifts to people who would otherwise be … [Read more...] about Giving Taxable Gifts? IRS Must Be Notified
Make Charitable Gifts Count
You may want to give to charity when you are planning your estate. Your legacy could then live on after your passing as some of your resources are utilized to make the world a better place. If you do have philanthropic aims you have to decide on a vehicle or vehicles of charitable giving. One option is the creation of a private foundation. When you look into the subject you may be surprised to hear that most of these foundations don't have any employees, and the majority of them … [Read more...] about Make Charitable Gifts Count
Autism Awareness Month Raises Planning Questions
Autism is a developmental disability that strikes with alarming frequency these days. Autism is called a "spectrum disorder," meaning that there is no one consistent symptom. Instead, individuals with autism exhibit one or more of the behaviors associated with the disorder, and the severity of the symptoms will vary person by person. In many cases people with autism require care and treatment throughout their lives. This can be extraordinarily expensive, reaching well into … [Read more...] about Autism Awareness Month Raises Planning Questions
