There are various different ways to facilitate asset transfers to your heirs. When you are making decisions, you should evaluate the life situation of each person on your inheritance list. You can provide for each person optimally if you act in an informed manner. Special Needs Trusts Special needs trusts are primarily used to preserve government benefits. Many people with disabilities are enrolled in government benefit programs that are only available to individuals who can demonstrate … [Read more...] about How Much Does a Special Needs Trust Cost?
What Happens to a Living Trust When One Spouse Dies?
Before we explain the intricacies of living trusts as they apply to married couples, we should examine the value of these trusts in general. You may assume that a last will is the best option when you are planning your estate. Many people are under the impression that trusts are only useful for those who are very wealthy. This is not entirely true. There are trusts that are used to satisfy the objectives of the wealthy, but there are other types of trusts that are useful for people of … [Read more...] about What Happens to a Living Trust When One Spouse Dies?
What Is a Grantor Retained Annuity Trust?
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?
