As 2024 approaches, a crucial update from the Internal Revenue Service (IRS) brings changes to the federal estate and gift tax exclusions. This blog post will delve into these changes and explore various strategies to minimize the negative impact. Understanding the 2024 Exclusion Increases In a significant move, the IRS has raised the unified exclusion amount for estate and gift taxes from $12.92 million in 2023 to $13.61 million in 2024. This increase means individuals can leave more to their … [Read more...] about IRS Announces Gift and Estate Tax Increases for 2024
What does estate planning entail? If you ask this question to a random person, they will probably say you draw up a will. This is an obvious option, but a trust can be a better choice in many instances. Let’s look at some of these situations. Timely Asset Distributions Do you want your loved ones to receive their inheritances shortly after your passing, or would you like them to wait for eight or nine months at minimum? If you think this is an absurd question, you should understand the fact … [Read more...] about When Is a Trust Preferable to a Will?
Dipping your toes into estate planning can feel like navigating a labyrinth of legal jargon. But understanding this language is crucial to ensuring that your wishes are fulfilled after your passing. Here's a handy glossary of some common estate planning terms to guide you on your journey. Estate Planning Let’s start at square one. Estate planning is the process of organizing the distribution and management of a person's estate during and after their lifetime, aiming to minimize taxes and other … [Read more...] about Navigating the Labyrinth: Key Estate Planning Terms
A lot of people procrastinate before they put estate plans in place. Going forward, many do not take action to make revisions as things change because a new cycle of procrastination takes hold. This phenomenon applies to known circumstances, and there are people that have outdated estate plans because they are not aware of changes to relevant laws. With this in mind, we will provide some food for thought in this post. Starting Out You should have an estate plan in place as soon as you are a … [Read more...] about Your Estate Plan Should Be Updated Along the Way
As we enter a new year, it is time for reflection, and some people think about the responsibilities they have been placing on the back burner. From an estate planning perspective, procrastination is always going to be an issue. Clearly, the subject is often avoided, and folks tend to think they will have time to take care of it in the future. In fact, two-thirds of American adults do not have estate plans in place. Moreover, those that do take action often breathe a sigh of relief. They tuck … [Read more...] about Does Your Estate Plan Reflect Your Current Wishes?
People sometimes make assumptions about estate planning that are based on misunderstandings. There are many reasons for this, and terminology is one of them. Some of the terms that are often used sound similar, but in actuality, they are not synonymous. We will look at some of them in this post. Living Trust and Living Will Everyone knows that a simple will is a document that is used to express your choices with regard to the way your estate will be distributed after your passing. You make … [Read more...] about Overlapping Estate Planning Terms Can Be Confusing
July 3rd was the 51st anniversary of Jim Morrison’s death. He died in Paris back in 1971, and people are still enjoying the music that he helped create all those years ago. His estate is also making money, just as it has done for the last 50+ years. Who gets these funds? In this post, we will look at some estate planning mistakes that he made in an effort to raise awareness. You may not be a multimillionaire rock star, but you can fall victim to the same errors if you do not take the … [Read more...] about Jim Morrison of the Doors Made Huge Estate Planning Errors
As a layperson, you have a lot of responsibilities on your plate on a day-to-day basis. It is unlikely that you are going to have a finger on the pulse of all the laws that relate to estate planning. On the other hand, an attorney in the field will be up to date at all times. This is one of the many reasons why should develop a relationship with an estate planning lawyer. Since you are reading this, you are taking the first step, and we will share some information about an important matter in … [Read more...] about Clock Is Ticking on Record High Estate and Gift Tax Exclusion
When high-profile celebrities with a lot of money pass away, the press knows that people are interested in the estate details. They dig through them if they are available, and they are widely publicized. This is an intrusion of privacy, but mistakes that are made can be instructive. This dynamic definitely applies to the 2016 passing of the music icon Prince, we will revisit the matter now that it has finally been settled. Intestacy Prince did not have a will or a trust when he passed away, … [Read more...] about Estate of Musician Prince Has Finally Been Settled
Estate planning can seem complicated and overwhelming if you do not know anything about it, and this is understandable. In this post, we will break it down to some easy-to-understand steps to help you get started if you are currently unprepared. Evaluate Your Assets It is important to inventory your assets and tally up the value of the resources that you intend to pass along to your loved ones. You should attach a dollar figure to your estate because of potential estate tax exposure. The … [Read more...] about Follow These Steps to Create Your Estate Plan