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...] about Do Trusts Provide Estate Tax Efficiency?
What Is a First Party Special Needs Trust?
People with disabilities often rely on Medi-Cal for health insurance, and Supplemental Security Income can provide a minimal source of monthly income. A special needs trust is a type of legal device that can be used to provide support for a person with a disability who is enrolled in these government benefit programs. Special needs trusts are used because Medi-Cal and Supplemental Security Income are only available to people who can prove that they have significant financial need. Individuals … [Read more...] about What Is a First Party Special Needs Trust?
Should I Change My Living Trust When I Acquire Assets?
A revocable living trust can provide you with a number of different benefits. One of them is the ability to make changes to the trust after it has been established. If you were to establish a living trust, you would create a trust declaration, and this would dictate the terms of the trust. You would typically act as the trustee initially, but you would name a successor trustee to take over after you pass away. The beneficiaries would also be named, and you would leave behind instructions with … [Read more...] about Should I Change My Living Trust When I Acquire Assets?
What Questions Should I Ask an Estate Planning Attorney?
There are a lot of things that you should know when you are devising your estate plan. If you do not act in a fully informed manner, you could make mistakes that negatively impact your loved ones. When you discuss things with a licensed estate planning attorney, you can go forward in a fully informed manner. Ultimately, you can emerge from the interaction with a personalized estate plan that ideally suits your needs. In this post we will look at some questions that you may want to ask your … [Read more...] about What Questions Should I Ask an Estate Planning Attorney?
Do I Pay Taxes on Living Trust Income?
When you understand some things about estate administration, you can see why so many people decide to use revocable living trusts. If you hold on to your property throughout your life and arrange for its distribution through the terms of a last will, the heirs to the estate will have a significant waiting period on their hands. The estate administration process takes place under the supervision of the probate court. After your passing, the executor or personal representative would be required … [Read more...] about Do I Pay Taxes on Living Trust Income?
What Is a Third Party Special Needs Trust?
You should know all the facts when you are planning your estate. There are notions floated on the Internet about the effectiveness of do-it-yourself estate planning. The suggestion is that anyone can plan his or her estate without professional guidance. In fact, you could make mistakes that yield unintended consequences if you make assumptions and go it alone. With this in mind, we will look at third party special needs trusts in this post. Unique Individuals Each person on your inheritance … [Read more...] about What Is a Third Party Special Needs Trust?
Is DIY Estate Planning Effective?
The process of estate planning involves the execution of legally binding documents. It is possible to purchase generic, template documents online. There are companies that sell last wills and other estate planning documents. Is DIY estate planning effective? Let's look at the facts. Choosing the Right Documents When you think about estate planning, you may assume that you should use a last will to state your final wishes regarding the distribution of your assets. It is possible that a last … [Read more...] about Is DIY Estate Planning Effective?
Should I Use a Corporate Trustee?
When you are planning your estate, you may want to consider the utilization of a revocable living trust as a vehicle of asset transfer. If you have a revocable living trust in place, you can continue to control the assets while you are alive and well. At first, you can act as the trustee. The trustee is the person who administers the trust. As the trustee you would control the actions of the trust throughout your life. The beneficiary of the trust receives monetary distributions from it. You … [Read more...] about Should I Use a Corporate Trustee?
What Is a Revocable Living Trust?
In this post we will look at a very commonly used estate planning device called a revocable living trust. These trusts can be useful for people of relatively ordinary means, and they are quite effective if you want to facilitate efficient asset transfers to your loved ones. Ongoing Control There are people who think that you surrender all control of assets that you convey into any type of trust. In fact, this is not the case with a revocable living trust. Look at the name of the trust: it is … [Read more...] about What Is a Revocable Living Trust?
Do I Need Anything In Addition to My Last Will?
Many people reduce the process of estate planning to the creation of a last will. In reality, a well constructed estate plan will involve the execution of additional documents. Incapacity Planning When you create your last will, you facilitate future asset transfers. However, a comprehensive estate plan will also address the latter portion of your life. Incapacity is common among elders. There are a number of different causes, but Alzheimer's disease is the leading culprit. This disease … [Read more...] about Do I Need Anything In Addition to My Last Will?
