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?
Resolve to Plan Your Estate in 2014
Now that we have entered a new year, people are going to be following through on resolutions they made. We would like to suggest that you resolve to plan your estate in 2014 if you are not currently prepared. Majority Go Without Estate Plan Surveys that are periodically conducted consistently find that the majority of American adults have not executed all of the appropriate estate planning documents. Younger adults are more remiss than their older counterparts, but many older people are … [Read more...] about Resolve to Plan Your Estate in 2014
What Is the Difference Between a Limited and a General Power of Attorney?
A comprehensive estate plan will go beyond the transfer of assets after you die. It will also include preparations for the eventualities of aging. Many people become unable to handle their own affairs when they reach an advanced age. A legal device that is used to name a representative to act on your behalf is a power of attorney ("POA"). A particular type of POA is used to account for the possibility of incapacity. Limited and General Powers of Attorney There are different types of powers … [Read more...] about What Is the Difference Between a Limited and a General Power of Attorney?
A New Hobby to Bridge Generations and Create Lasting Memories
Assuring that our loved ones inherit our assets is a key component to effective estate planning. However, one of the most valuable legacies we can leave are memories. Your family will appreciate the assets you pass on, but they will treasure the memories and stories you leave behind even more. Just imagine all the memories you can leave, and the fun you can have with your family and friends, by making photography and archiving precious photos your new hobby. Many of us have boxes or albums … [Read more...] about A New Hobby to Bridge Generations and Create Lasting Memories
Is It Possible to Contest a Trust in San Jose California?
People sometimes hear about the negative circumstances that can arise if you don't take the right steps when you are planning your estate. In a general sense, you may assume that informed individuals create trusts to address special circumstances to avoid these unwanted outcomes. There is a lot of truth in this assumption. The ideal estate planning devices will vary on a case-by-case basis. You don't have to go forward with the idea that a last will is your only choice unless you are very … [Read more...] about Is It Possible to Contest a Trust in San Jose California?
