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
Estate Planning Information: Consider the Source
You have to consider the source when you are searching the Internet looking for information about estate planning. There are Internet marketers out there who sell so called "one-size-fits-all" DIY estate planning kits. Most people are logically going to take pause, thinking that legal documents are generally drawn up with the assistance of licensed attorneys. These profit motivated websites are aware of this, and they must overcome this natural, logical objection. They do so by suggesting that … [Read more...] about Estate Planning Information: Consider the Source
Low Interest Rates Make Charitable Lead Trusts Appealing
We have an estate tax exclusion of $5.34 million in 2014, and this is a unified exclusion that encompasses taxable gifts that you give throughout your life as well as the assets that you are passing on after your death. It is worthwhile to emphasize the fact that you should not rest easy if your assets do not exceed this amount. Though you will hear the term "permanent" tossed around with regard to this $5 million exclusion with ongoing inflation adjustments, legislative changes are always … [Read more...] about Low Interest Rates Make Charitable Lead Trusts Appealing
Estate Planning Solution: Post-Marital Agreements
Married couples who are engaged in the process of estate planning can sometimes come to an impasse. There are a lot of decisions to make, and when you are deciding how to distribute community property there are different perspectives that can be taken. Estate Planning involves some important decisions, and there are no guarantees with regard to both partners agreeing on everything. One possible solution that exists would be the creation of a post-marital agreement that identifies the personal … [Read more...] about Estate Planning Solution: Post-Marital Agreements
Estate of Loner Bequeathed to Actors
The process of estate planning usually involves arranging for the transfer of assets to relatives and perhaps some close friends. However, there are no hard and fast rules; you can give inheritances to anyone regardless of the relationship. It is even possible to leave behind money to people that you do not know personally. Though few of us would take advantage of this possibility, Ray Fulk, who passed away last summer in Illinois, had different ideas. Fulk was a loner who didn't have any … [Read more...] about Estate of Loner Bequeathed to Actors
All Responsible Adults Need an Estate Plan
When you examine the statistics, you find that the majority of people in the United States have not executed all of the recommended estate planning documents. Many of us live busy lives and procrastination can often be the order of the day, but there is really no excuse for going through life without making any preparations for the inevitable. Even if your situation is not very complex, it is important to express your final wishes with regard to the distribution of your financial assets via the … [Read more...] about All Responsible Adults Need an Estate Plan
Determining the Validity of a Last Will
When you utilize a last will to direct the future transfers of your assets to your heirs, your estate is going to be probated. This is the legal process during which the probate court that is local to the deceased determines the validity of the will and supervises the administration of the estate. If some interested party wanted to challenge the validity of the will, he or she could present his or her arguments during probate. Of course, if this takes place the administration of the estate is … [Read more...] about Determining the Validity of a Last Will
Estate of “Painter of Light” Stays Out of Court
We like to pass along news items involving the estate planning successes and failures of high profile individuals. In keeping with this initiative, we shared the story of the dispute surrounding the estate of the deceased self-described "Painter of Light" Thomas Kinkade some time ago. As you may recall, Kinkade died in April of 2012 while he was estranged from his wife Nanette. For 18 months he had been in a relationship with Amy Pinto-Walsh. Before he died, Kinkade left Pinto-Walsh $10 … [Read more...] about Estate of “Painter of Light” Stays Out of Court
Improve Quality of Life Without Hindering Benefit Eligibility
Positioning your assets optimally in anticipation of the future is certainly part of what estate planning is all about. However, you would also do well to consider the recipients of your estate. The best way to pass along resources to one family member may not be appropriate for the next. This is certainly true when it comes to family members with special needs. Some individuals with disabilities require expensive long-term care, and they may need it for extended periods of time. A year-long … [Read more...] about Improve Quality of Life Without Hindering Benefit Eligibility
