trusts

Due to provisions that are contained in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 the estate tax exclusion is now $5 million. What this means is that your heirs will owe no estate tax at all if the value of your estate is $5 million or less. Any portion of your estate that exceeds $5 million in total value is subject to a 35% federal levy. So if your estate is worth less than $5 million you have no reason to concern yourself with the estate tax, right? … [Read more...] about Removing Your Home’s Value From Your Estate

One of the primary objectives of estate planning for many individuals is to gain estate tax efficiency, and there are a number of legal instruments that can be utilized to provide this. The best way to proceed depends on the exact nature of your assets and what your overall intentions may be. Many people who are seeking estate tax efficiency also have an interest in giving something to charitable causes as a part of their legacy, and there are some vehicles of charitable giving that can … [Read more...] about Charitable Giving, Taxes, & CRUTs

One of the objectives that many people have when they are engaged in the process of estate planning is to enable a transfer of assets to their loved ones in a tax efficient manner. You might think this can be accomplished through gift giving while you are still alive to see your family members enjoy the gifts. Unfortunately the IRS is well aware of this possibility so there is a gift tax in place that carries the same rate as the estate tax. There is a $5 million lifetime gift tax exemption, … [Read more...] about Tax-Free Gift Possible With A Zeroed Out GRAT

Every family is comprised of a compendium of unique individuals who all have different talents. At the same time, we all have our weaknesses as well and not everyone is a sound money manager. This is something to take into consideration when you are planning your estate. Most people who reach an advanced age become comfortable with the reality of their own mortality. Perhaps the most difficult thing to deal with is the idea that you will no longer be around to help your loved ones should they … [Read more...] about Is Money Management Ability A Concern?

There are those who have heard that the estate tax is something that they don't have to worry about because it is a levy that is only imposed on "the rich." This kind of thinking can get you into trouble because that definition can sometimes be extended to people who do not consider themselves to be wealthy at all. At the present time the estate tax exclusion is $5 million, so only the portion of your estate that exceeds this amount is subject to the estate tax, which is carrying a 35% rate at … [Read more...] about QPRTs & The Estate Tax

The last will is not the only way to transfer assets to your family members after you pass away, and in many cases other methods would be preferable. Every family is different, and depending on the form that your assets are in and the exact nature of your wishes any number of strategies may be optimal. A lot of people are aware of the fact that other options exist, but they are under the impression that only people of extraordinary means need to consider them, but this is not the case at … [Read more...] about The Value Of A Revocable Living Trust

If you have been fortunate enough to be able to accumulate assets that are sufficient enough to provide life-changing amounts of money to your loved ones after you pass away you invariably feel a certain sense of peace of mind when you are planning your estate. Being unable to provide any type of safety net for your loved ones after you pass away would certainly be an unsettling feeling, so you can only feel grateful if this is not something that you need to be concerned about. But at the same … [Read more...] about Estate Planning & Spendthrifts

Asset protection is an important consideration when you're engaged in the process of inheritance planning. In this context we are talking about asset protection as it pertains to the people who will be receiving inheritances from you. Asset protection involves taking steps to make it impossible for claimants to pursue funds that you want to make available to your loved ones after you pass away. Of course if you give direct bequests and your heirs assume ownership of the assets creditors, former … [Read more...] about Inheritance Planning & Asset Protection

One of the reasons why it is important to retain the services of an experienced estate planning attorney when you get serious about planning for the future is because of the fact that the typical layperson would have no reason to have an understanding of all the different vehicles of asset transfer that are available. Many people automatically think about the last will when they consider estate planning, but there are a lot of reasons why it may be better to utilize trusts such as a revocable … [Read more...] about Trusts, Pour-Over Wills, & Your Estate