Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.This is part of a series of 6 blogs on important estate planning considerations. I’ll intersperse these blogs with other timely blogs.The first article in the series showed how an estate plan prepares one for incapacity during life and not just for the distribution of assets at death. The second article in the series focused on how an estate plan should take into … [Read more...]
How Tax Reform Could Impact Various Families
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,American Academy of Estate Planning Attorneys, Inc.This is another in a series of blogs on the basics of estate planning.President Trump and Republican lawmakers recently unveiled a Blueprint for tax reform. Here’s a link to a story about this in U.S. News. Here’s a link to a deeper look at the proposal in the Atlantic.As I discussed in last week’s blog, there are many uncertainties in the plan and in the … [Read more...]
Am I going to owe taxes if I inherit property?
By: Matthew M. Shafae, AttorneyLitherland Law FirmAm I going to owe taxes if I inherit property?We get this question all the time. And we don’t blame you. It can get confusing. So, let’s see if we can clear up this issue. Let’s segregate the different taxes that might be owed, and then we can see if anything will be owed.Estate TaxThe estate tax—or death tax, as it’s sometimes called—is a transfer tax on assets transferred from someone who died to someone who is living. The tax … [Read more...]
Portability and Second Marriages
by Matthew M. Shafae and Justin M. Kennedy, AttorneysLaw Office of Roy W. LitherlandA lot of estate planning hypothetical situations involve the spouse dying, and the survivor getting hitched with some nefarious predator who is only after the survivor’s wealth. All of our attention is paid toward preserving the estate and protecting the kids. But what about a second marriage that actually benefits the kids, and helps preserve the estate? We recently had precisely that scenario in our … [Read more...]
Sorting Through the Taxes That May Impact Your Estate Plan
By: Matthew M. Shafae, AttorneyLaw Office of Roy W. LitherlandThe “T-word” usually makes our eyes glaze over and we picture an overworked accountant wearing a green eyeshade crunching a bunch of numbers for us every April. Well, unfortunately, I can’t make them go away, but I can attempt to explain how taxes may impact your estate planning.Within the context of your estate plan, there are typically three main taxes that are relevant: the estate tax, the income tax, and, sometimes, … [Read more...]
Electing Portability
By: Justin M. Kennedy, Associate AttorneyLaw Office of Roy W. LitherlandEvery person is entitled to give away a certain amount of money tax-free, either during life or at death. Under the current federal estate tax law, all US citizens are each allowed an estate tax exemption of $5,000,000 (this amount is indexed for inflation and is $5,450,000 in 2016). This amount may also be reduced by gifts while living that exceed the annual exemption amount ($14,000 in 2016).This blog article … [Read more...]
Why is Estate Planning Important in 2016?
Studies show that a majority of American adults do not have a complete and cogent estate plan in place. Failing to plan ahead for death and the likelihood of incapacity in our later years can be costly, both emotionally and financially.Many people do not have an estate plan because they don't understand the importance of estate planning. We will highlight some of the key reasons why estate planning is essential in this blog.Avoiding IntestacyIf you pass away without any estate … [Read more...]
Free Living Trust Seminars in September
Helping to keep our community informed is important to us. We get out into the community on an ongoing basis to provide helpful information to people here in the greater San Jose area. To this end, we present an ongoing series of informational workshops covering various elder care and estate planning topics.Our workshops and seminars are free of charge and open to the general public. During the month of September, we will be offering seminars that focus on the subject of living trusts.Why … [Read more...]
Can a Trust Provide Estate Tax Efficiency?
Estate tax efficiency is an important consideration for high net worth individuals. There are a number of states in the union that impose estate taxes on the state level. We practice law in California, and we get a break here, because there is no California state estate tax. However, we do have to be concerned about the federal estate tax.You may hear people say that the estate tax is only a factor for people who are very wealthy. Depending on your definition of "very wealthy," this may not be … [Read more...]
Do Trusts Provide Estate Tax Efficiency?
The federal estate tax is not a factor for most people, however, it is a very big deal for high net worth families. This tax carries a 40 percent maximum rate, and this can equate to a great deal of wealth surrendered to the tax man.To determine whether or not you are exposed to the tax, you want to compare the value of your estate to the estate tax credit or exclusion. In 2015, the exclusion is $5.43 million.When you are inventorying your assets, you must include everything that you own, … [Read more...]
