The process of estate planning is just that: a process. If you truly want to be prepared every step of the way, you should not just create a living trust and then forget about it. Life does not stand still. The estate plan that you initially put into place will reflect the circumstances of your life as they stood at that time. Over the years, there may be additions and subtractions to the family, changes in your marital status, and improvements in your financial profile. All of these things … [Read more...] about Are Your Trust Terms Obsolete?
Durable Property Powers of Attorney (An Elder Law Today Blog)
What is a durable property power of attorney? A durable property power of attorney is a legal document where one person (the principal) authorizes another (the agent) to act on the principal’s behalf regarding financial decisions. It is an estate planning document which allows a person to plan for the care and control of property in the event he or she becomes incapacitated. Powers of attorney are the single most important documents to put in place so that a family member or trusted friend will … [Read more...] about Durable Property Powers of Attorney (An Elder Law Today Blog)
Attention to Detail Is Key When Planning Estate
There are a plethora of details to attend to when you are planning your estate if you want to be comprehensively and effectively prepared. Simply looking for the easy way out is a recipe for disaster. Speaking of easy ways out that can yield disastrous results, you would do well to take pause before trying to construct a last will using an online tool. Experts have weighed in on the subject, and unintended consequences can result when you try to go this route. Additionally, as a layperson are … [Read more...] about Attention to Detail Is Key When Planning Estate
Consider a GRAT When Interest Rates are Low
It is possible to utilize a grantor retained annuity trust or GRAT to transfer assets in a tax efficient manner under the right circumstances. Before we get into the zeroed out grantor retained annuity trust strategy, let's look at the estate tax parameters. The maximum rate of the tax in 2014 is 40%. The gift tax is unified with the estate tax, and it too has a 40% top rate. The current amount of the estate tax exclusion in 2014 is $5.34 million. Those in possession of assets that exceed … [Read more...] about Consider a GRAT When Interest Rates are Low
The Anatomy of a Revocable Living Trust
A revocable living trust can be a good choice when you are deciding how you will be passing along assets to your heirs. The primary reason why revocable living trusts are utilized is to avoid probate. When a will is admitted to probate, the probate court determines its validity. If anyone wanted to contest the validity of the will, they could do so while the probate process is underway. Creditors could seek payments from the estate during probate, and final taxes must be paid. The executor of … [Read more...] about The Anatomy of a Revocable Living Trust
How Will You Give to Charity?
When you are contemplating the legacy that you will be leaving behind, you may consider giving to charity. Many people are passionate about certain causes, and there are those who would like to give something back to institutions that have been meaningful to them throughout their lives such as schools or hospitals. Making philanthropy a part of your legacy can be personally satisfying, but there can also be tax advantages. Everyone is aware of the fact that you can deduct charitable donations … [Read more...] about How Will You Give to Charity?
Be Aware of the Dangers of DIY Estate Planning
Any time you would like to access information about any facet of estate planning, we invite you to visit our website. We have accumulated a rather extensive digital library of free special reports that cover all areas of estate planning and elder law. One of these reports examines the dangers of DIY estate planning. There are websites out there that sell generic legal documents including estate planning devices. There are things that can go wrong when you use a download or worksheet to create … [Read more...] about Be Aware of the Dangers of DIY Estate Planning
Foreign Spouse Not Entitled to Unlimited Marital Estate Tax Deduction
We have an unlimited marital deduction in the United States that applies to the estate tax. If you are married, you can bequeath money to your spouse in any amount without incurring estate tax liability. Transfers to everyone else are potentially taxable at a maximum rate of 40%. We say "potentially" because there is a $5.34 million exclusion in 2014. Your assets must exceed this amount before the tax would kick in. The powers that be expect to be able to collect their taxes eventually because … [Read more...] about Foreign Spouse Not Entitled to Unlimited Marital Estate Tax Deduction
Gandolfini of Sopranos Fame had Flawed Estate Plan
People who are in possession of a great deal of wealth have a lot to lose via the imposition of estate taxes. There is a federal estate tax that is applicable to everyone in all of the states, and some states have a state-level estate tax. In California, there is currently no state estate tax, but the people in New York are not as fortunate. In the Empire State, there is an estate tax that tops out at 16%, and the exclusion is just $1 million. The federal estate tax carries a 40% top rate, and … [Read more...] about Gandolfini of Sopranos Fame had Flawed Estate Plan
July Estate Planning Seminars Scheduled
We have our July estate planning seminars scheduled, and we would like to invite our readers to attend one of these free informational sessions. When you have more of an understanding of the reasons why you may want to take certain steps, you are likely to be motivated to take action for the well-being of your loved ones. People who don't really understand all the facts about estate planning often go through life without making the appropriate preparations. They think that things will just … [Read more...] about July Estate Planning Seminars Scheduled
