There are various different ways to give to charity when you are planning your estate. The correct choice for you is something that you should probably discuss with an experienced estate planning lawyer. Some people would like to derive income as they set aside a certain amount of money for charities. This can sometimes be done with inherent tax advantages built-in. To this end, you may want to consider the creation of a charitable remainder unitrust. Another option would be to create a … [Read more...] about Charitable Giving: Know Where Your Money Is Going
Incapacity Component Adds to Appeal of Living Trusts
There are some estate planning devices that accomplish multiple objectives, and living trusts are among them. The primary reason why individuals decide to utilize revocable living trusts is because of the fact that these trusts enable future distributions of assets to the beneficiaries without the hindrances of probate. Probate is a legal process that can take a lot of time. There are also costs that go along with this process. When you use a revocable living trust rather than a last will to … [Read more...] about Incapacity Component Adds to Appeal of Living Trusts
When “Slicing Pie” Consider Post-Mortem Dynamic
When you're looking at the sum total of the assets that you are going to be leaving behind to your loved ones, you are in a sense slicing up a pie. The first logical thought that you may have would be that the fair way to do this would be to give each of your children equal inheritances. Many people go this route, and it certainly makes sense on the surface. However, there are those who evaluate the needs of each respective individual and allow these evaluations to play a role in their … [Read more...] about When “Slicing Pie” Consider Post-Mortem Dynamic
How Long Will Your Financial Legacy Last?
A 2013 article published on the Wall Street Journal website sheds some light on the subject of lost inheritances. You may think that most people who can pass along enormous sums of money to the next generation are setting up their estates to provide for many generations to come. In fact, the statistics tell a decidedly different tale. Seven dollars out of every ten that is inherited is lost by the end of the second generation. Statistical averages indicate that only 10% of an inheritance is … [Read more...] about How Long Will Your Financial Legacy Last?
Various Different Wills Used in Estate Planning
Aside from the last will, or last will and testament as it was traditionally called, there are some other types of wills used in the field of estate planning. One of these is the living will. This is an important advance health care directive, and unfortunately the majority of people in the United States are going through life without a living will. This type of will is not a financial instrument. Living wills are used to state your preferences regarding medical procedures. Your choices as … [Read more...] about Various Different Wills Used in Estate Planning
Surviving Spouse Must Revise Plan
The death of a spouse is obviously one of the most profound events that you can experience. Once the initial wave of emotions has subsided and you are capable of taking care of practical matters, you must ask yourself what comes next from a financial perspective. If you have insurance policies or payable on death accounts, you are going to have to consider new beneficiaries. In a general sense, your existing estate plan that was put in place while your spouse was still alive is invariably going … [Read more...] about Surviving Spouse Must Revise Plan
Steer Clear of These Common Estate Planning Errors
We would like to suggest that our readers steer clear of these three common estate planning errors. Error # 1: The assumption that you will never be exposed to the federal estate tax As 2013 approached, the future of the estate tax was hazy. Unless some type of legislation was passed in the 11th hour, the estate tax exclusion was going to be reduced to $1 million in 2013, and the rate was scheduled to rise to 55%. At the last minute, the American Taxpayer Relief Act of 2012 was passed … [Read more...] about Steer Clear of These Common Estate Planning Errors
The Incredible Shrinking Inheritance
If you run into some type of unexpected difficulty that is out of your control, there may not be much you can do about it on one level. However, if you take steps to prepare for unpleasant contingencies, the impact can be much less severe. The above enters into the realm of retirement and estate planning. Many people are still feeling the impact of the financial upheaval that the country experienced in 2007 and 2008. Of course, some were more prepared to absorb the blow than others. If you … [Read more...] about The Incredible Shrinking Inheritance
QPRT Can Provide Estate Planning Solution
If you are a homeowner who is exposed to the estate tax, you may want to consider reducing the taxable value of the property by placing it into a qualified personal residence trust. The funding of the trust with the home is going to remove the home from your estate, reducing your estate tax exposure. However, this is not the point of the strategy because when you fund the trust, you are giving a taxable gift to the beneficiary. The gift tax is unified with the estate tax, and it too carries a … [Read more...] about QPRT Can Provide Estate Planning Solution
Taxation Erodes Koch Estate
In the state of New York, the name Ed Koch is certainly a memorable one. The former three-term mayor of New York City died in February, and he left behind a sizable estate. As an individual who was never married, Koch had no children. According to Forbes, he left his sister and her husband $500,000, and his sister-in-law and each of her two children got $50,000. Koch's brother died back in 1955. He also provided a $100,000 bequest to his secretary. The bulk of his estate went to his sister's … [Read more...] about Taxation Erodes Koch Estate
