There are many different legal devices that can be used when you are planning your estate. A lot of people do not understand this, and this leads them to the belief that they can simply use do-it-yourself downloads to create their own wills. In reality, your plan should be constructed to meet your specific needs. Each family is different, and the right way to transfer assets to one person may not be appropriate for the next. Plus, there are asset protection elements that can enter the picture … [Read more...] about Why Would I Use an Irrevocable Trust?
There are some overlapping terms used in the field of estate planning, and this can lead to misconceptions. With this in mind, we are going to look at the difference between a living will and a living trust in this post. Wills and Trusts for Asset Transfers Most people are aware of the fact that a will can be used to state your final wishes with regard to asset transfers. In a general sense, they know that trusts serve the same purpose, but there are differences that a layperson would not … [Read more...] about Is a Living Will Similar to a Living Trust?
Divorce rates have been going down over the last few decades, but there are still plenty of marriages that do not withstand the test of time. Many of these folks get remarried, and Psychology Today has stated that the majority of second and third marriages do not succeed. This is the reality, and even though you may think you will not be one of the statistics, you can rest assured that all of the divorced people felt the same way. Protecting Your Legacy There are different approaches that … [Read more...] about Is Remarriage Raising Estate Plan Questions?
When you are planning your estate, you have to be mindful of its value relative to the federal estate tax exclusion. This is an amount that can be transferred tax-free, and the remainder would be subject to the tax and it is 40 percent top rate. Each year, there are inflation adjustments, and they are announced toward the end of the previous year. The IRS has recently calculated the 2022 exclusion, and we will share it in this post. 2022 Federal Estate Tax Exclusion You should digest some … [Read more...] about Federal Estate Tax Exclusion Increased in 2022
A lot of people that are fully aware of the importance of estate planning are unprepared because they don’t have a starting point. With this in mind, we will share some questions here. When you think about the answers, your estate plan will start to take shape. Are family members relying on your income? Even if you are single and you have no children, you should have a basic estate plan in place, but you would be taking a minimal risk if you do not. On the other hand, if you are married and … [Read more...] about Answers to These Questions Will Shape Your Estate Plan
There are numerous tools in the estate planning toolkit, and one of them is the life estate. We will explain why people use life estates in this post, but first, we will share some background information to provide context. The Process of Probate A will is not administered by the executor independently without any supervision. Under state laws, a will is admitted to probate, and the court presides over the administration process. It serves a purpose because creditors are notified, and they … [Read more...] about Why Would You Need a Life Estate?
Many people do not consider the possibility of creating a trust because they harbor misconceptions about the administration process. In this post, we will share five key facts that will help you understand the value and relative simplicity of living trusts. You act as the trustee. One of the most important things to understand about the living trust is the fact that you act as the trustee while you are living. You have complete control of the assets every step of the way, and you retain the … [Read more...] about Five Key Facts About Trust Administration
We are going to look at the question of taxes on appreciated assets in this post. After we provide an explanation of the step-up in basis, we will conclude with an overview of the potential impact of the other types of taxes. Basis Reset Let’s say that your grandmother passes away and she leaves you shares of stock that are worth $150,000, and the shares were worth $50,000 when she acquired the stock. She would have been required to pay the capital gains tax if she would have realized the gain … [Read more...] about Is an Inheritance Subject to Capital Gains Taxes?
The vast majority of American adults do not have estate plans in place, and some folks simply do not feel as though it is necessary. This is a mistake, and we will provide some food for thought in this post. Avoid Intestacy Some people that do not have plans intend to draw up a simple will at some point when they are senior citizens. Unfortunately, people pass away at all ages every day, and the condition of intestacy would exist if you die without a will or trust. Under these … [Read more...] about Why Is an Estate Plan Necessary?
When you are planning your estate, you should understand the estate administration process that will commence after your passing. This will sometimes involve probate, and we will provide some important facts about this process in this post. Court Supervision Most people are aware of the fact that an executor is the person that will eventually distribute inheritances when a will is used as an asset transfer vehicle. The executor is not allowed to administer the estate without any type of … [Read more...] about Why Do Some People Avoid Probate?