In this post we will look at a very commonly used estate planning device called a revocable living trust. These trusts can be useful for people of relatively ordinary means, and they are quite effective if you want to facilitate efficient asset transfers to your loved ones. Ongoing Control There are people who think that you surrender all control of assets that you convey into any type of trust. In fact, this is not the case with a revocable living trust. Look at the name of the trust: it is … [Read more...] about What Is a Revocable Living Trust?
Free Report: Estate Planning Demystified
Because so many people are uninformed, a high percentage of Americans are going through life without an estate plan. When you understand the facts, you invariably take action because you know why estate planning is important. With the above in mind, we would like to provide some foundational information about estate planning and the eventualities of aging. Click here to read the whole article or download the PDF. … [Read more...] about Free Report: Estate Planning Demystified
Do I Need Anything In Addition to My Last Will?
Many people reduce the process of estate planning to the creation of a last will. In reality, a well constructed estate plan will involve the execution of additional documents. Incapacity Planning When you create your last will, you facilitate future asset transfers. However, a comprehensive estate plan will also address the latter portion of your life. Incapacity is common among elders. There are a number of different causes, but Alzheimer's disease is the leading culprit. This disease … [Read more...] about Do I Need Anything In Addition to My Last Will?
What Is a Charitable Remainder Trust?
Charitable giving can be a very rewarding endeavor when you are crafting your legacy. When you engage in philanthropic acts you receive personal rewards, but there can also be tax advantages if you take the right steps. With this in mind, we will look at charitable remainder trusts in this post. Overview If you are creating a charitable remainder trust, you are called the grantor of the trust. To enjoy the maximum benefits, you want to fund the trust with assets that have appreciated … [Read more...] about What Is a Charitable Remainder Trust?
What Is the Most Important Estate Planning Document?
Estate planning is a comprehensive, ongoing process. People sometimes look for easy answers, but there is really no shortcut that you can take if you want to create a truly effective estate plan. There is no one-size-fits-all estate planning document, and no one document is inherently more important than any other. It all depends on the circumstances. Asset Transfers When you plan your estate, you facilitate future asset transfers. Some people are exposed to the federal estate tax. … [Read more...] about What Is the Most Important Estate Planning Document?
What Is an Irrevocable Trust?
They say that you should use the right tool for the right job, and there are many different tools that can be used when you are planning your estate. The optimal course of action will vary depending on the circumstances. Trusts can be used to accomplish numerous different objectives, but all trusts are not created equal. There are revocable trusts, and there are irrevocable trusts. On the surface, the general difference is self-evident: you can revoke or rescind one type of trust, and you … [Read more...] about What Is an Irrevocable Trust?
What Is a Buy-Sell Agreement?
In the field of estate planning, buy-sell agreements can sometimes be used as a reaction to a rather challenging situation. You may want to consider using a buy-sell agreement if you are a partner in a small business. This is a form of business continuation agreement that you enter into with the other partners. In this post we will look at two different types of buy-sell agreements. Cross Purchase Plan One very simple and straightforward type of buy-sell agreement is the cross purchase plan. … [Read more...] about What Is a Buy-Sell Agreement?
What Is Estate Tax Exclusion Portability?
High net worth individuals must be very aware of the potential impact of the federal estate tax. This tax carries a maximum rate of 40 percent, so it can take a heavy toll on the financial legacy that you are leaving behind to your loved ones. There is a federal estate tax credit or exclusion, and it divides those who must pay the tax from those who are exempt. During the 2014 calendar year, the estate tax exclusion is $5.34 million. Next year you may see a somewhat higher figure if an … [Read more...] about What Is Estate Tax Exclusion Portability?
When Is a Federal Estate Tax Return Due?
The estate tax is a factor if the value of your estate exceeds the amount of the federal estate tax credit or exclusion. For the rest of 2014, the federal estate tax exclusion is $5.34 million. If your assets do not exceed this amount, you have no exposure. On the other hand, if you intend to transfer more than $5.34 million, you should explore estate tax efficiency strategies. There are things that you can do to mitigate your estate tax exposure. The optimal course of action will vary … [Read more...] about When Is a Federal Estate Tax Return Due?
Who Can Act as an Agent Under a Power of Attorney?
Your estate plan should ideally be looked upon as the culmination of a long-term financial plan. It is important to prepare for your active retirement years so that you can enjoy that stage of life, and there are also the twilight years that will follow. During the latter portion of your life, incapacity becomes quite possible. There are those who suffer from physical incapacitation, and cognitive impairment can also be a factor. Alzheimer's disease is a leading cause of dementia. We have all … [Read more...] about Who Can Act as an Agent Under a Power of Attorney?
