Before we explain the intricacies of living trusts as they apply to married couples, we should examine the value of these trusts in general. You may assume that a last will is the best option when you are planning your estate. Many people are under the impression that trusts are only useful for those who are very wealthy. This is not entirely true. There are trusts that are used to satisfy the objectives of the wealthy, but there are other types of trusts that are useful for people of … [Read more...] about What Happens to a Living Trust When One Spouse Dies?
A grantor retained annuity trust (GRAT) could potentially be useful if you are exposed to the federal estate tax. Before we explain the value of these trusts, we should provide some information about the estate tax so that you can determine whether or not you are exposed. Federal Estate Tax Parameters Everyone does not pay the federal estate tax, because there is a relatively large credit or exclusion. The portion of the estate that exceeds the amount of this exclusion would potentially be … [Read more...] about What Is a Grantor Retained Annuity Trust?
Researchers periodically conduct studies that ask people about their estate planning preparedness. Time after time, the results are not encouraging. The majority of American adults do not have a comprehensive estate plan in place. Many older people are remiss, but as you may imagine, younger adults are more likely to put estate planning on the back burner. This is certainly understandable on one level. You may feel somewhat invincible when you are in your 20's, 30's, or 40's. At the same time, … [Read more...] about Do Young Adults Need an Estate Plan?
Estate planning for high net worth individuals can be complicated because of taxes on asset transfers. We have an estate tax, a gift tax, and a generation-skipping transfer tax. All of these taxes are considered to be unified by the Internal Revenue Service. As a result, you can't really understand one of them without understanding all of them. Before we explain the generation-skipping transfer tax, we will look at the other two federal taxes on asset transfers. Federal Estate Tax The federal … [Read more...] about What Is the Generation-Skipping Transfer Tax?
We like to unravel the alphabet soup of estate planning acronyms on our blog from time to time. Today we will look at the legal device called the ILIT. In an estate planning context, an ILIT is an irrevocable life insurance trust. Federal Estate Tax Before we explain the value of an ILIT, you must understand some things about the federal estate tax. There is a federal estate tax credit or exclusion. If the value of your estate exceeds the amount of this credit, the estate tax is potentially … [Read more...] about Irrevocable Life Insurance Trust in San Jose: What Is an ILIT?
You have a number of choices to make when you are planning your estate. There are various different vehicles of asset transfer that can be utilized. When you act in an informed manner, you can be certain that all of your loved ones are provided for appropriately. With this in mind, we would like to look at the value of supplemental needs trusts in this post. Protecting Government Benefits If you have someone with a disability on your inheritance list, you must take measured steps. A high … [Read more...] about What Is a Supplemental Needs Trust?
When you are planning your estate, you may want to consider the creation of a revocable living trust. For the most part, these trusts are popular because they facilitate the transfer of monetary assets outside of the process of probate. Your estate must be probated when you use a last will rather than a trust to express your wishes regarding the distribution of your resources after you die. The probate process comes along with some significant pitfalls. Most people are going to want to … [Read more...] about Revocable Living Trust in San Jose: Who Should I Name as Successor Trustee?
You can prepare for the possibility of incapacity late in your life by executing a document called a durable power of attorney. With a power of attorney, you name someone else to act on your behalf in a legally binding manner. Durable powers of attorney remain effective even if the grantor of the device becomes incapacitated. It can be tricky to create a durable power of attorney to account for the possibility of incapacity, because you do not know if you will ever become unable to make your … [Read more...] about When Does a Power of Attorney Become Effective?
You have many different options when you are arranging for the eventual transfer of your monetary assets to your loved ones. The utilization of a last will is going to come to mind, but you can also consider alternatives. If you retain personal ownership of your property up until the time of your death and arrange for its transfer through the terms of a last will, the probate process will become a factor. A last will must be admitted to probate. The probate court will determine the validity of … [Read more...] about Do I Lose Control of My Property If I Establish a Living Trust?
It can seem as though the utilization of a last will is the simplest and most efficient way to transfer assets. A trust can seem like something that is much more complicated. In fact, when you use a will, the heirs to the estate don't receive their inheritances until the estate has been probated. The probate court supervises the administration of the estate unless you take steps to avoid probate. There is a caveat to the above. In the state of California there are some probate shortcuts that … [Read more...] about Is Probate Always Required?