When you think about the process of estate planning, the execution of documents will probably come to mind. This is a large part of the endeavor to be sure, but someone must follow the instructions that you leave behind in these documents. If you use a last will as your primary vehicle of asset transfer, this person will be the executor. Choosing the Right Executor Your first impulse may be to name someone who is especially close to you as the executor of your estate. This could be the right … [Read more...] about What Qualities Should I Look for in an Executor?
What Are the Formal Requirements for a Valid Last Will?
The last will or last will and testament is an estate planning document that most people have heard about. In the past, the last will was used to transfer real property, and the testament was a document that was utilized to transfer personal property. These days, the last will is typically used to transfer both types of property. Before we look at the formal requirements for a valid last will, we should point out the fact that you have other asset transfer options when you are planning your … [Read more...] about What Are the Formal Requirements for a Valid Last Will?
Can I Give Gifts to Avoid the Estate Tax?
You have to understand the potential impact of the federal estate tax when you are devising your estate plan. This tax is relevant if you have attained a significant level of financial success, but you could be exposed even if you to not consider yourself to be extraordinarily wealthy. When you are inventorying your assets to determine your level of exposure, you have to understand the fact that your real property counts. Your primary residence, your vacation home, and any investment property … [Read more...] about Can I Give Gifts to Avoid the Estate Tax?
Budget Proposal for 2016 Would Reduce Estate Tax Exclusion
The federal estate tax is controversial, and there are those who would say that it is unfair, because it is an instance of double taxation. You pay taxes all of your life, and your estate is comprised of whatever you have left after paying these taxes. Why should the event of your death be a taxable one? Though this may be a good question, the estate tax does not get all that much attention, because most people are not exposed to it. However, if your estate was subject to the estate tax and its … [Read more...] about Budget Proposal for 2016 Would Reduce Estate Tax Exclusion
Do I Need a Lawyer to Draw Up a Last Will?
Now that we are firmly embedded in the digital age, a do-it-yourself mindset has developed. People often search the Internet to find out how to do things, and you can tackle many different types of tasks on your own. However, the key is to know where you should draw the line. There are websites on the Internet that will sell you boilerplate, template legal documents, including last wills. Do you really need a lawyer to draw up a last will when you can download a worksheet off the Internet and … [Read more...] about Do I Need a Lawyer to Draw Up a Last Will?
What Is a Step-Up in Basis?
When you inherit assets, you may have questions about the tax implications. We can provide some good news right off the bat: You do not have to report an inheritance as income for income tax purposes. There is also the capital gains tax to take into consideration. This tax can be levied when appreciated assets are liquidated. For tax purposes, there are long-term capital gains, and short-term capital gains, and these two different types of gains are taxed at different rates. The short-term … [Read more...] about What Is a Step-Up in Basis?
What Is a CLAT?
In the realm of estate planning, a CLAT is a charitable lead annuity trust. These trusts can be useful if you want to provide assets for a charitable cause. Under certain circumstances, a CLAT can also help you gain estate tax efficiency. Federal Estate Tax Before we explain the intricacies of the charitable lead annuity trust, we should look at the estate tax parameters so that you can determine your level of exposure. The estate tax credit or exclusion is the amount that you can transfer … [Read more...] about What Is a CLAT?
What are the Drawbacks of Joint Tenancy?
When you think about estate planning, you probably think about documents like wills and trusts. These legal devices are used to facilitate postmortem asset transfers, but under some circumstances, assets can pass directly even if documents such as these were never executed. Joint Tenancy Joint tenancy is the condition that exists if you add a co-owner to property that is in your possession. For example, if you decided to add your daughter to the title of your home as a co-owner, she would … [Read more...] about What are the Drawbacks of Joint Tenancy?
Should I Change My Living Trust When I Acquire Assets?
A revocable living trust can provide you with a number of different benefits. One of them is the ability to make changes to the trust after it has been established. If you were to establish a living trust, you would create a trust declaration, and this would dictate the terms of the trust. You would typically act as the trustee initially, but you would name a successor trustee to take over after you pass away. The beneficiaries would also be named, and you would leave behind instructions with … [Read more...] about Should I Change My Living Trust When I Acquire Assets?
Free Report: Will My Heirs Be Forced to Pay An Inheritance Tax in California?
In this post, we will look at taxes that can be imposed on asset protection. Topics covered in this whitepaper include: Inheritance Tax Estate Tax Federal Gift Tax State-Level Estate Tax Capital Gains Tax Click here to read the whole article or download the PDF. … [Read more...] about Free Report: Will My Heirs Be Forced to Pay An Inheritance Tax in California?
