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]
Do I Report an Inheritance to the IRS?
When you receive an inheritance, you might wonder about your obligations to the IRS. Taxes can be confusing, and understanding your responsibilities ensures you stay compliant. Below, we’ll explore what you need to know about reporting an inheritance. Understanding How Inheritances Are Taxed An inheritance itself is not considered taxable income by the IRS. If … [Read More]
Can a Trustee Change the Terms of a Trust?
If you’ve been named a trustee, you may be wondering how much authority you actually have. Managing assets, making distributions, filing tax returns — those responsibilities come with the role. But what about the trust document itself? Can a trustee change the terms of a trust if circumstances shift, if a beneficiary’s needs evolve, or … [Read More]
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