Many wealthy families in California would do well to consider the creation of family limited partnerships. These estate planning devices can be useful for asset protection, and they can also facilitate asset transfers at a tax discount. Asset Protection First we would like to take a look at the asset protection that is afforded by family limited partnerships. If you were to be targeted by a creditor or litigant, your personal assets could be vulnerable if you do not take steps to protect them. … [Read more...] about What Is a California Family Limited Partnership?
Are Your Trust Terms Obsolete?
The process of estate planning is just that: a process. If you truly want to be prepared every step of the way, you should not just create a living trust and then forget about it. Life does not stand still. The estate plan that you initially put into place will reflect the circumstances of your life as they stood at that time. Over the years, there may be additions and subtractions to the family, changes in your marital status, and improvements in your financial profile. All of these things … [Read more...] about Are Your Trust Terms Obsolete?
Including Life Insurance in Your Estate Plan [Infographic]
If you are like the majority of people, then you know you should include life insurance in your estate plan, but you’re probably not sure what type to include, how many policies you need, or how much to purchase. Life insurance can be an extremely beneficial and versatile addition to an estate plan. The key to incorporating life insurance into your estate plan is to gain a firm understanding of the types of polices available and then properly calculating how much you need. Click here to view a … [Read more...] about Including Life Insurance in Your Estate Plan [Infographic]
What Is Estate Planning in California?
Estate planning is something that many people do not know much about. For some reason we tend to avoid the subject of death in our society, but at the same time we all recognize it is one of the certainties of life. It is important to plan ahead for this inevitability, and you should start doing so as soon as you are a self-supporting adult. The typical estate plan is going to include a vehicle of asset transfer. A simple last will is an option here. With a last will you express your final … [Read more...] about What Is Estate Planning in California?
Durable Property Powers of Attorney (An Elder Law Today Blog)
What is a durable property power of attorney? A durable property power of attorney is a legal document where one person (the principal) authorizes another (the agent) to act on the principal’s behalf regarding financial decisions. It is an estate planning document which allows a person to plan for the care and control of property in the event he or she becomes incapacitated. Powers of attorney are the single most important documents to put in place so that a family member or trusted friend will … [Read more...] about Durable Property Powers of Attorney (An Elder Law Today Blog)
Attention to Detail Is Key When Planning Estate
There are a plethora of details to attend to when you are planning your estate if you want to be comprehensively and effectively prepared. Simply looking for the easy way out is a recipe for disaster. Speaking of easy ways out that can yield disastrous results, you would do well to take pause before trying to construct a last will using an online tool. Experts have weighed in on the subject, and unintended consequences can result when you try to go this route. Additionally, as a layperson are … [Read more...] about Attention to Detail Is Key When Planning Estate
Two Different Types of Estate Planning Mistakes
There are various different mistakes that can be made when you are planning your estate. Some of them are errors of commission, and many of them are errors of omission. Sometimes, it's a combination of both. With this in mind, let's examine the estates of two well known celebrities. Sammy Davis, Jr. People who can remember the entertainment scene during the 1950's through the 1980's certainly recognize the name Sammy Davis, Jr. He was a member of the famed "Rat Pack" along with Dean Martin, … [Read more...] about Two Different Types of Estate Planning Mistakes
Consider a GRAT When Interest Rates are Low
It is possible to utilize a grantor retained annuity trust or GRAT to transfer assets in a tax efficient manner under the right circumstances. Before we get into the zeroed out grantor retained annuity trust strategy, let's look at the estate tax parameters. The maximum rate of the tax in 2014 is 40%. The gift tax is unified with the estate tax, and it too has a 40% top rate. The current amount of the estate tax exclusion in 2014 is $5.34 million. Those in possession of assets that exceed … [Read more...] about Consider a GRAT When Interest Rates are Low
A Tale of Two Estates: Jim Morrison and Steve McNair
Everyone should take estate planning seriously. But at the same time, the stakes are higher for those who are in possession of considerable resources like popular musical performers and professional athletes. Let's examine two different celebrity estate cases that provide some food for thought. The Estate of Jim Morrison Jim Morrison has become a legend of sorts, and he is among an elite group. We have all heard of "one-hit wonders," and even some musical artists who have remained relevant … [Read more...] about A Tale of Two Estates: Jim Morrison and Steve McNair
The Anatomy of a Revocable Living Trust
A revocable living trust can be a good choice when you are deciding how you will be passing along assets to your heirs. The primary reason why revocable living trusts are utilized is to avoid probate. When a will is admitted to probate, the probate court determines its validity. If anyone wanted to contest the validity of the will, they could do so while the probate process is underway. Creditors could seek payments from the estate during probate, and final taxes must be paid. The executor of … [Read more...] about The Anatomy of a Revocable Living Trust
