A grantor retained annuity trust (GRAT) could potentially be useful if you are exposed to the federal estate tax. Before we explain the value of these trusts, we should provide some information about the estate tax so that you can determine whether or not you are exposed. Federal Estate Tax Parameters Everyone does not pay the federal estate tax, because there is a relatively large credit or exclusion. The portion of the estate that exceeds the amount of this exclusion would potentially be … [Read more...] about What Is a Grantor Retained Annuity Trust?
Do Young Adults Need an Estate Plan?
Researchers periodically conduct studies that ask people about their estate planning preparedness. Time after time, the results are not encouraging. The majority of American adults do not have a comprehensive estate plan in place. Many older people are remiss, but as you may imagine, younger adults are more likely to put estate planning on the back burner. This is certainly understandable on one level. You may feel somewhat invincible when you are in your 20's, 30's, or 40's. At the same time, … [Read more...] about Do Young Adults Need an Estate Plan?
Advantages and Disadvantages of a Conservatorship in San Jose
When you are planning ahead for the future, you should prepare yourself for each stage of life. There are the active retirement years, and there are the twilight years that will inevitably follow. It may not be the most pleasant thing to consider, but you may become unable to handle all of your own day-to-day needs when you reach an advanced age. Incapacity is not uncommon among elders. The term "oldest old" is used to describe those who are at least 85 years of age. Around 40 percent of the … [Read more...] about Advantages and Disadvantages of a Conservatorship in San Jose
What Is a Qualified Domestic Trust?
Before we explain the purpose of a qualified domestic trust, we should provide some background information about the federal estate tax and the unlimited marital deduction. Estate Tax Parameters There is a federal estate tax that is potentially applicable on large asset transfers. During the current calendar year, the amount of the federal estate tax credit or exclusion is $5.34 million. You can leave behind as much as $5.34 million tax-free. Anything that you pass along that exceeds this … [Read more...] about What Is a Qualified Domestic Trust?
What Is the Generation-Skipping Transfer Tax?
Estate planning for high net worth individuals can be complicated because of taxes on asset transfers. We have an estate tax, a gift tax, and a generation-skipping transfer tax. All of these taxes are considered to be unified by the Internal Revenue Service. As a result, you can't really understand one of them without understanding all of them. Before we explain the generation-skipping transfer tax, we will look at the other two federal taxes on asset transfers. Federal Estate Tax The federal … [Read more...] about What Is the Generation-Skipping Transfer Tax?
Estate Planning for Small Business Partners
Estate planning can be somewhat confusing for small business partners. You may not be sure about how (and when) you want to exit the business. If you do have ideas, you may not know how to make your vision for the future become a reality. Small business partnerships come in various different forms. The partners could be family members, or they could simply be business partners who are not related. One of the concerns would be the matter of liquidity and inheritance balancing. Let's assume that … [Read more...] about Estate Planning for Small Business Partners
Irrevocable Life Insurance Trust in San Jose: What Is an ILIT?
We like to unravel the alphabet soup of estate planning acronyms on our blog from time to time. Today we will look at the legal device called the ILIT. In an estate planning context, an ILIT is an irrevocable life insurance trust. Federal Estate Tax Before we explain the value of an ILIT, you must understand some things about the federal estate tax. There is a federal estate tax credit or exclusion. If the value of your estate exceeds the amount of this credit, the estate tax is potentially … [Read more...] about Irrevocable Life Insurance Trust in San Jose: What Is an ILIT?
Why Would I Want a Revocable Living Trust?
Why would I want a Revocable Living Trust? from Roy W. Litherland You have options when you are planning your estate.There is no reason to make any assumptions until you know all the facts. … [Read more...] about Why Would I Want a Revocable Living Trust?
Can You Create a Pet Trust in California?
Estate planning is an exercise in providing for those that you love. Most of the individuals that you love are walking around on two legs. However, many of us own pets who we consider to be part of our families. When you are planning your estate, you must remember your furry friends. One way to provide for a pet would be to make the pet the beneficiary of a pet trust. Legal in California The concept of the pet trust is something that has slowly grown in legality and popularity. At this point, … [Read more...] about Can You Create a Pet Trust in California?
Revocable Living Trust in San Jose: Who Should I Name as Successor Trustee?
When you are planning your estate, you may want to consider the creation of a revocable living trust. For the most part, these trusts are popular because they facilitate the transfer of monetary assets outside of the process of probate. Your estate must be probated when you use a last will rather than a trust to express your wishes regarding the distribution of your resources after you die. The probate process comes along with some significant pitfalls. Most people are going to want to … [Read more...] about Revocable Living Trust in San Jose: Who Should I Name as Successor Trustee?
