For people who have an estate tax problem and a large portion of their estate is their personal residence, a Qualified Personal Residence Trust (“QPRT”) should be considered. If your resources are at a particular level you have to concern yourself with the ravages of the estate tax. This federal estate tax is currently carrying a maximum rate of 35%, but it is scheduled to rise to 55% at the end of 2012. Whether or not you have to pay estate taxes depends upon the overall value of your assets … [Read more...] about Consider A QPRT For Tax Savings
Estate Tax Changes Loom
It has been said that the only thing constant in life is change, and change can certainly be good. When it comes to the federal estate tax, we tend to see frequent change and the uncertainty such frequent changes bring is not always welcomed. There have been a lot of changes to the estate tax parameters over the last few years. In 2009, the maximum estate tax rate was 45% and the exclusion was $3.5 million. The estate tax was repealed for 2010. However, on December 17, 2010, Congress brought … [Read more...] about Estate Tax Changes Loom
Pet Planning Is An Important Estate Planning Consideration
People can often overlook smaller estate planning details. After all, taking an inventory of all your assets and readying them for distribution to your loved ones can be a rather herculean task and it would be easy for something to fall between the cracks. This is one of the reasons why it is a good idea to engage the services of a certified and experienced estate planning attorney. You only have one estate to plan, but estate planning lawyers prepare countless estate plans for their … [Read more...] about Pet Planning Is An Important Estate Planning Consideration
Generation Skipping Trusts Can Reduce Tax Exposure
The estate tax is much-maligned in some quarters because of the fact that it is imposed on resources that have already been taxed. After all, your savings and investments were accumulated with the money that you were able to hang onto after you paid taxes on your income. But to make matters worse, there can be multiple impositions of the estate tax on the resources that you leave behind to your loved ones. Simply put, if you leave a taxable sum to your children and they keep it intact or build … [Read more...] about Generation Skipping Trusts Can Reduce Tax Exposure
Fairness Of Estate Tax Questioned
The federal estate tax stands on shaky logical ground in the minds of many individuals. For one thing, they contend that the estate tax is an instance of double taxation. When you earn money you must pay income and payroll or self-employment taxes. You are then left with an after-tax remainder. The purchases that you make are made with these after-tax earnings, and any savings that you accumulate would consist of money that you had left over after paying taxes. The personal possessions that … [Read more...] about Fairness Of Estate Tax Questioned
Payable On Death Accounts
There are complicated financial instruments that are used in estate planning and it is a good idea to retain the services of an experienced estate planning attorney when you are making preparations for the future. This having been stated, there are also some rather simple solutions that can be a part of your comprehensive plan for aging and eventual death. When it comes to transferring assets to your loved ones, one of these simple solutions would be a payable on death "POD" account (sometimes … [Read more...] about Payable On Death Accounts
A Look At Social Security Eligibility
People who are planning for retirement are often going to pinpoint the date at which they become eligible to receive Social Security as their retirement date. It should be noted that it is not a good idea to be overly reliant on Social Security because the monthly benefit is rather modest and there are no guarantees about the future of the Social Security program. An intelligently conceived retirement plan throughout your working career that reduces your dependence on Social Security will … [Read more...] about A Look At Social Security Eligibility
Veterans May Qualify For Living Assistance Benefit
Most people are aware of the fact that individuals who serve in the United States military are entitled to a retirement pension after serving for at least 20 years. However, there is another type of pension that many veterans are eligible to receive that is not as well known called the Veterans Aid & Attendance special pension or simply "Veterans A & A." One of the reasons there are qualified veterans who are not aware that they are eligible to tap into this resource is because the … [Read more...] about Veterans May Qualify For Living Assistance Benefit
Is DIY Estate Planning Wise?
Many people enjoy engaging in do-it-yourself projects for a number of different reasons. Obviously you can save some money if you can complete a task on your own rather than bringing in a professional. It can also be fun and personally rewarding to get involved in a DIY project. Some people make a hobby of it and build on specific skills that they acquire as they take on one task after another, purchasing tools or others types of equipment along the way. DIY is certainly enriching, but you do … [Read more...] about Is DIY Estate Planning Wise?
What to do when a Deceased Person Held Property in Joint Tenancy with a Fictitious Person?
Recently I had an attorney ask me about the following question. A decedent had died holding several accounts in joint tenancy with someone believed to never have existed. Who knows why people do these kinds of things, but there it is. Apparently great effort and expense had been incurred trying to identify this person, and ultimately it was concluded they weren't real. The question is how to proceed? The decedent had a will, but probate proceedings had not yet been started. I advised as … [Read more...] about What to do when a Deceased Person Held Property in Joint Tenancy with a Fictitious Person?
