You have various different options when you are planning your estate. You can use a last will to record your final wishes regarding the transfer of your property, but it is not your only choice. Even if you are not wealthy, you may want to consider the creation of a revocable living trust as a vehicle of asset transfer. Probate Avoidance Probate is a legal process. When you use a last will to direct the transfer of your property, the will must be admitted to probate. During probate the court … [Read more...] about Why Should I Consider a Living Trust?
When Do I Need a Special Needs Trust?
They say that you should use the right tool for the right job. This comes into play when you are planning your estate. There are various different legal devices that can be used to arrange for the transfer of assets to others. You should become apprised of your options and make the optimal choices. With this in mind, let's look at special needs trusts. People With Disabilities & Medi-Cal People who have disabilities often rely on government programs, and Medi-Cal is one of them. Medi-Cal … [Read more...] about When Do I Need a Special Needs Trust?
What Is the Nomination of a Guardian?
Parents of minor children should certainly take action when it comes to estate planning. Statistics tell us that younger adults are quite remiss when it comes to the execution of estate planning documents. They may have some reasons that make sense to them, but you put your children at risk when you do not take preventative measures. Nominating a Guardian One of these preventative measures would be the nomination of a guardian. You can nominate a guardian when you are drawing up your last … [Read more...] about What Is the Nomination of a Guardian?
Should I Create a Joint Tenancy With My Child?
Joint tenancy is the condition of co-ownership of property. Joint tenancy with right of survivorship allows the surviving joint tenant to inherit the entirety of the property that was held in joint tenancy. The transfer takes place outside of probate. This can seem like a viable estate planning solution. Let's say that you want to leave your home to your son after you die. You could add your son to the deed of your home, making him a joint tenant. After you die, he would assume ownership of the … [Read more...] about Should I Create a Joint Tenancy With My Child?
Can I Give Tax-Free Gifts to My Children?
When you hear about the existence of the federal gift tax, you may wonder if it is possible to give tax-free gifts to your children. The answer is yes and no. A Look at the Gift Tax The gift tax exists to close a loophole. The estate tax was first implemented in 1916. Originally, there was no gift tax to go along with it. As a result, people who were exposed to the estate tax gave away assets while they were living to avoid the death tax. As a response, the gift tax was implemented a few … [Read more...] about Can I Give Tax-Free Gifts to My Children?
Should I Have a Durable Power of Attorney for Health Care?
It is important to consider the eventualities of aging if you want to be comprehensively prepared for the future. Incapacity is one of the challenges that you may face. To prepare for this possibility, you should consider the execution of a legally binding document called a durable power of attorney for health care. Powers of Attorney A power of attorney is a legal device that is used to name an agent or attorney-in-fact to act on your behalf. People sometimes execute powers of attorney even … [Read more...] about Should I Have a Durable Power of Attorney for Health Care?
Register Now for Free Estate Planning and Elder Care Seminars and Workshops
We make an effort to provide estate planning and elder care information to people here in the greater San Jose area on an ongoing basis. On the electronic level we maintain this blog and make sure that it is updated regularly with useful content. In addition to the blog, our website has a section that contains a rather extensive library of free special reports. The special reports examine various different aspects of estate planning and elder care, and you can download as many reports as you … [Read more...] about Register Now for Free Estate Planning and Elder Care Seminars and Workshops
What Are the Drawbacks of Probate?
When you use a last will to record your final wishes, the executor or some other person close to you must admit the will to probate. Probate is a legal process that the estate must pass through before the heirs receive their inheritances. There are certain drawbacks that go along with the probate process. For this reason many people implement probate avoidance strategies. In this post we would like to look at three of the drawbacks of probate. Loss of Privacy The first drawback of … [Read more...] about What Are the Drawbacks of Probate?
Trusts & Asset Protection
Asset protection is something that many people are concerned about. You certainly want to make sure that your assets are protected for your own purposes, and these concerns will naturally extend to resources that you will be leaving behind to your heirs. Do Trusts Protect Assets? Some people are under the impression that you can protect assets by placing them into any type of trust. This is not the case. For example, let's look at revocable living trusts. These trusts are very popular, but … [Read more...] about Trusts & Asset Protection
Do I Pay Taxes When I Inherit Money?
Since you pay taxes on income, you may wonder if you have to report an inheritance that you may receive when you file your income tax returns. The answer is no, in general your inheritance will not be subject to income taxes. However, if you inherited something that subsequently appreciated, the appreciation could be taxable. As the recipient of the inheritance, you don't have to pay income taxes. But, taxation can be a factor when you look at the big picture. There is an estate tax in place, … [Read more...] about Do I Pay Taxes When I Inherit Money?
