Many people have concerns about providing some of their heirs with too much, too fast, and this is a legitimate "pleasant problem." We have all heard about high profile individuals who appear to have it all and yet are struggling with personal problems. Sometimes these individuals are able to overcome their demons, and other times they're not so fortunate. Indeed, money does not solve every problem, and sometimes a large windfall of financial resources that you did not earn can cause more … [Read more...] about A Nudge In The Right Direction
Making Charitable Giving a Part of Your Estate Plan
Recently there was talk in financial circles about the "Billionaire Challenge." Two of the wealthiest individuals in the United States, Warren Buffett and Bill Gates, challenged those in the same financial stratosphere to give away at least half of their wealth over the course of their lives. Buffett has pledged to give away most of his fortune, and he has already donated billions to the Bill and Melinda Gates Foundation. While only a precious few individuals have the type of resources that … [Read more...] about Making Charitable Giving a Part of Your Estate Plan
What the Unification of Gift And Estate Tax Means to You
Anyone who is planning for the future should be well aware of the potential ravages of the federal estate tax. There is a certain amount of money that you can pass along to your loved ones free of this tax, and everything that exceeds this exemption is subject to the tax. Right now the amount of the estate tax exclusion is $5 million, and the maximum rate of the tax is 35%. A lot of people will read the above and say, okay, so I'll give my money away to those who would otherwise inherit it … [Read more...] about What the Unification of Gift And Estate Tax Means to You
Creditor Claims
I was recently asked to address someone's claims against an estate. There were several procedural issues I addressed and pass along to you, as well as some practical advice regarding the nature of this person's claims. People create living trusts as part of the estate plan in order to avoid the death probate process which can be both time-consuming and expensive. If there is a trust involved, you can present your claim to the trustee, and it can be in any format which communicates the nature … [Read more...] about Creditor Claims
Estate Planning: Procrastination Is Not An Option
Recognizing that you should have an estate plan in place that includes an incapacity component is something that most people understand, even as relatively young adults. Procrastination is the problem. Statistics reveal that many young Americans have failed to do estate and incapacity planning, and that lack of preparation is placing their families at risk. According to a Harris interactive survey that was conducted late in 2009, only 24% of Americans who are under the age of 35 have any type … [Read more...] about Estate Planning: Procrastination Is Not An Option
Deeds of Trust
Deeds of Trusts are commonly misunderstood by most of the public. Even though the name includes trust, those documents are only nominally trusts, and the law governing them has little in common with trust law. Deeds of trust are actually lending documents. In many states, when someone buys a home and borrows money from a bank to do so, they sign a promissory note secured by a mortgage. The mortgage acts as a security device giving the lender an interest in the home to guarantee the lender … [Read more...] about Deeds of Trust
Consider A QPRT For Tax Savings
For people who have an estate tax problem and a large portion of their estate is their personal residence, a Qualified Personal Residence Trust (“QPRT”) should be considered. If your resources are at a particular level you have to concern yourself with the ravages of the estate tax. This federal estate tax is currently carrying a maximum rate of 35%, but it is scheduled to rise to 55% at the end of 2012. Whether or not you have to pay estate taxes depends upon the overall value of your assets … [Read more...] about Consider A QPRT For Tax Savings
Estate Tax Changes Loom
It has been said that the only thing constant in life is change, and change can certainly be good. When it comes to the federal estate tax, we tend to see frequent change and the uncertainty such frequent changes bring is not always welcomed. There have been a lot of changes to the estate tax parameters over the last few years. In 2009, the maximum estate tax rate was 45% and the exclusion was $3.5 million. The estate tax was repealed for 2010. However, on December 17, 2010, Congress brought … [Read more...] about Estate Tax Changes Loom
Pet Planning Is An Important Estate Planning Consideration
People can often overlook smaller estate planning details. After all, taking an inventory of all your assets and readying them for distribution to your loved ones can be a rather herculean task and it would be easy for something to fall between the cracks. This is one of the reasons why it is a good idea to engage the services of a certified and experienced estate planning attorney. You only have one estate to plan, but estate planning lawyers prepare countless estate plans for their … [Read more...] about Pet Planning Is An Important Estate Planning Consideration
Generation Skipping Trusts Can Reduce Tax Exposure
The estate tax is much-maligned in some quarters because of the fact that it is imposed on resources that have already been taxed. After all, your savings and investments were accumulated with the money that you were able to hang onto after you paid taxes on your income. But to make matters worse, there can be multiple impositions of the estate tax on the resources that you leave behind to your loved ones. Simply put, if you leave a taxable sum to your children and they keep it intact or build … [Read more...] about Generation Skipping Trusts Can Reduce Tax Exposure
