For 2014 the federal estate tax exemption is scheduled to be $5,340,000, which was an increase based on inflation from the exemption amount of $5,250,000 in 2013. As of this writing in 2012 the estate tax exclusion is $5.12 million. So, if the overall value of your estate does not exceed this figure it is not going to be subject to the federal estate tax. However, if you are breathing a sigh of relief you may want to continue reading. This arrangement is only in place through the end of the … [Read more...] about Consider QPRT in Light of Coming Changes
trusts
What Is A Dynasty Trust?
The vast majority of people who are working do so because they are trying to earn a living. It is logical to try to make the most of the time that you spend on the job, and all responsible individuals would like to gain some financial security for the well-being of their family members. If you are particularly successful doing what everybody sets out to do you may find yourself in possession of some significant financial resources. Because of the federal estate tax and the gift tax with which … [Read more...] about What Is A Dynasty Trust?
Providing for Your Grandchildren
It is no secret that grandparents generally have very special relationships with their grandchildren. When you are planning your estate you are invariably going to be interested in providing for your grandchildren, and there are a number ways of going about it. One very simple way to get resources into the hands of your grandchildren in a tax-free manner would be to take advantage of the annual $13,000 per person gift tax exemption. You can give gifts totaling this much within any calendar year … [Read more...] about Providing for Your Grandchildren
What Is Probate in Connecticut?
The process of probate is a very important factor to consider when you are planning your estate, and many people are not even aware of its existence. You may have seen dramatic depictions of a scene that takes place after a funeral on television or in the movies. Probate is not involved in these fictional dramatizations. A somber group assembles around a table in a side room, and there is a "reading of the will." The assumption that the viewer is left with is that the assets that comprise the … [Read more...] about What Is Probate in Connecticut?
Estate Planning: What You Need & Why You Need It
Once you decide that you are no longer going to procrastinate about estate planning you are going to ask yourself exactly what you need. With this in mind we would like to share the various different components that are contained within the typical estate plan. Transfer of Financial Assets: Simple Wills Clearly, arranging for the future transfer of your financial assets is going to be part of the equation when you are planning your estate. The first document that may come to mind when you are … [Read more...] about Estate Planning: What You Need & Why You Need It
Trustee Has Fiduciary Responsibility
One of the reasons why some people shy away from the idea of utilizing a trust to arrange for the transfer of their assets eventually is because they don't fully understand how these instruments work. They choose a last will instead, assuming that this is a simple and direct way to arrange for asset transfers. In reality, the reverse may be true in some instances. When you use a last will your estate must pass through probate before the heirs to the estate receive their inheritances. This … [Read more...] about Trustee Has Fiduciary Responsibility
Three Basic Estate Planning Terms
There are some foundational elements that are typically contained within estate plans in the United States and we would like to take a look at three very basic terms here to provide our readers with a rudimentary foundation. Wills Most people are aware of the fact that a last Will (or last Will and testament) is utilized to express your final wishes with regard to how you would like to see your assets distributed after your passing. However, there are some other types of wills that are used in … [Read more...] about Three Basic Estate Planning Terms
Spoiling Heirs May Be A Concern
When you think about situations that are considered to be "problems" the implication is that they are all bad. But there is such a thing as a pleasant problem as well, and some of these types of problems can creep into the realm of estate planning. While financial resources are certainly going to be welcomed by the family members that you are leaving behind, you may be concerned about spoiling certain individuals. It is likely that there are some people on your inheritance list who are fully … [Read more...] about Spoiling Heirs May Be A Concern
Zero Out A GRAT
There are numerous acronyms that you will see tossed about when you look into the field of estate planning. One of these is the GRAT and in an estate planning context this stands for a grantor retained annuity trust. If you have appreciable securities, you may be able to "zero out" one of these trusts and facilitate a tax-free transfer of assets to the beneficiary in the process. With a grantor retained annuity trust you as the grantor receive annuity payments annually throughout the term of … [Read more...] about Zero Out A GRAT
Divorced Parents May Have Dual Objectives
It could be easy to imagine an estate planning scenario involving two people who have been married to one another all of their lives who have children together and perhaps some grandchildren. Of course these types of traditional families exist, but during our current era divorce is very common. As a result you have situations that require specialized courses of action. One of these would be when you get divorced and remarried after having children from your first marriage. You probably want to … [Read more...] about Divorced Parents May Have Dual Objectives
