A lot of people have questions about how taxes can impact estates, including taxes on trusts. In this post, we will provide some clarity, with an emphasis on taxes on capital gains. Main Types of Trusts Trusts essentially fall under three main categories. A simple trust is the most commonly used type of trust, and … [Read More]
How Does a Trust Differ From a Will?
When you begin exploring how to protect your family and pass down your assets, you will inevitably run into two foundational concepts: the will and the trust. Many people use these terms interchangeably, assuming they are just different names for the same legal outcome. In reality, a simple will and a revocable living trust are … [Read More]
Can You Refuse an Inheritance?
Receiving an inheritance might sound like a financial windfall, but it is not always welcome. You might feel uncomfortable accepting certain assets, or you may worry that taking the inheritance could cause financial or personal complications. In Connecticut, you have the legal right to refuse an inheritance if you choose. This process is known as … [Read More]
What Are Contingent Beneficiaries and Why Do I Need Them?
When you name a beneficiary, you’re making a deliberate choice. You’ve thought about who matters to you, and you’ve put that in writing. What most people don’t think about is the follow-up question: what happens to that gift if your beneficiary dies before you do? The answer depends on whether you planned for it. If … [Read More]
What Is Estate Tax Exclusion Portability?
Estate tax exclusion portability is a provision in federal tax law. It allows a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate tax exclusion. This feature provides significant benefits for married couples, offering flexibility and substantial tax savings when transferring wealth. However, understanding the details and limitations, especially in states … [Read More]
The Roman Blum Case: Why You Need to Know About Escheat Laws
Imagine building tens of millions of dollars in wealth and leaving no instructions about who should inherit it. That’s exactly what happened in the case of Roman Blum, a Holocaust survivor and successful real estate developer from New York. When Blum passed away in 2012, he left behind an estate worth approximately $40 million. Surprisingly, … [Read More]
What Are the Drawbacks of Probate?
Probate is the legal process through which a deceased person’s estate is settled. While it serves a purpose, probate comes with significant drawbacks that can create challenges for your loved ones. This blog will explore the drawbacks of probate and explain how creating a living trust can help you sidestep these complications. The Key Drawbacks … [Read More]
$500 Million and No Will: Zappos Founder Tony Hsieh’s Estate Battle Resumes
Will My Children Pay Capital Gains Taxes on Their Inheritances?
You may be wondering whether your children will owe capital gains taxes on the assets they inherit. The good news is that most inherited assets receive a step-up in basis, which will typically eliminate liability. However, other tax considerations may still come into play. Understanding how taxes affect inheritances can help you structure your estate … [Read More]
What Are UGMA and UTMA Accounts?
UGMA and UTMA accounts are two types of custodial accounts that parents or grandparents can open for their children or grandchildren. These accounts allow for asset transfers to children while still retaining control over the account until the child reaches a certain age. However, there are some key differences between UGMA and UTMA accounts that … [Read More]
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