Some people drag their feet when it comes to estate planning because they don’t have enough basic information. With this in mind, we will provide a few tips in this post to give you some foundational knowledge to draw from going forward. Don’t fret about taxation unless you are a multimillionaire. You may assume that estate planning involves complicated steps that must be taken to minimize tax exposure. In reality, the tax situation for the vast majority of people is very favorable. There … [Read more...] about These Tips Can Jumpstart Your Estate Plan
Estate Planning Guide: Important Factors to Consider
A lot of people that are unprepared from an estate planning perspective know that it is important. Many of them state that they are frozen with inaction because they simply do not know where to begin. This is understandable, and in this post, we will provide some basic facts to consider when you are thinking about the estate planning process. Nursing Home Asset Protection We are going to start with an area that can be easily overlooked. Your estate plan is going to have limited value if you … [Read more...] about Estate Planning Guide: Important Factors to Consider
Estate Planning and Vacation Homes
A vacation home can provide countless family memories over the years. When you start to envision your legacy, vacay property may be a part of it. In this post, we will provide some important information about estate planning and vacation homes. Do Your Children Really Want the Home? The thought of your children and their families enjoying quality time at the vacation home after you are gone may be heartwarming. At the same time, your children may have different ideas. For example, let’s say … [Read more...] about Estate Planning and Vacation Homes
Do Trusts Pay Taxes on Capital Gains?
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 the structure is the most basic. The income that is generated by assets in the trust is distributed to the beneficiaries, but the principal or corpus remains in the trust. Another … [Read more...] about Do Trusts Pay Taxes on Capital Gains?
What Is Estate Planning?
When you plan your estate, you make conscious decisions about the way that your monetary assets will be transferred after you are gone. A lot of people think that estate planning boils down to the creation of a will, but there are other ways to transfer assets. Personalized Planning There are different approaches that can be taken, and the right way to proceed will depend on the circumstances. For example, let’s say that you have someone with a disability on your inheritance list, and they … [Read more...] about What Is Estate Planning?
Four Defined Steps You Can Take to Shape Your Estate Plan
Many people that do not have estate plans in place say that they know they should act, but they don’t know where to start. This is understandable when you are entering territory that is unfamiliar to you, and in this post, we will share four simple steps you can take to get started. Assess Your Resources You should evaluate your assets and gain an understanding of the resources that will comprise your estate. From a broader overview, if your estate is going to be worth millions of dollars, you … [Read more...] about Four Defined Steps You Can Take to Shape Your Estate Plan
Answers to These Questions Will Shape Your Estate Plan
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
Is an Inheritance Subject to Capital Gains Taxes?
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?
Why Is an Estate Plan Necessary?
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?
Estate Planning: Separate Fact From Fiction
People sometimes pass along “information” about estate planning that is untrue or incomplete, and this can lead to mistakes that yield negative consequences. In this post, we will look at a handful of estate planning myths that can lead you astray. DIY estate planning is a simple solution. You can buy generic, fill-in-the-blanks legal documents online, and these companies sell will and trust templates. They contend that anyone can plan their own estate using these products. There are a … [Read more...] about Estate Planning: Separate Fact From Fiction