The pandemic has been difficult for many of us, including some Estate Planning attorneys. Sometimes it’s difficult to follow all the news. But, there’s little-known pandemic relief for employers struggling from the pandemic. Read on to learn more. … [Read more...] about Pandemic Relief for Employers
The process of estate planning can seem overwhelming to a layperson, and admittedly, there are some intricacies that enter the picture. This being stated, there are essentially four boxes to check when you plan your estate, and we will look at them here. Asset Transfer Vehicle When you plan your estate, you have to facilitate postmortem transfers to your heirs. A simple will is an option, but it will not be the right choice unless the situation is stripped-down and very … [Read more...] about Cover These Four Estate Planning Bases
The federal estate tax looms large for high net worth individuals because it carries a very hefty 40 percent rate. It is imposed on the portion of an estate that exceeds the amount of the exclusion, and in 2021, the federal estate tax exclusion is $11.7 million. You do not have to be concerned about paying the tax on transfers to your spouse, because there is an unlimited marital deduction. This gives you the ability to transfer any amount of property to your spouse tax-free, but there is one … [Read more...] about Can You Give Gifts to Avoid Estate Taxes?
If you have someone in the family that is a poor money manager, you may have serious reservations when you are devising your estate plan. This individual may burn through their inheritance quickly and be left with nowhere to turn in the future, and this can definitely be a cause for concern. Fortunately, they are steps you can take to protect a spendthrift heir, and we will look at a commonly embraced solution in this post. Revocable Living Trust Under these circumstances, you can establish … [Read more...] about How Can You Protect a Spendthrift Heir?
As we approach the end of the year, it’s a good time to think about updating your plan. This includes your entire plan, including Powers of Attorney. Powers of Attorney are part of even the simplest estate plan. A Power of Attorney allows your Agent to act for you. There are Powers of Attorney for financial matters and also those for health care. It’s important to consider whether you need to update either of these powers. Read on to learn more. … [Read more...] about Updating Your Plan: Powers of Attorney
A Health Care Power of Attorney appoints someone to make decisions for you if you’re not able to do so for yourself. An Advance Directive expresses your wishes regarding end-of-life decisions. During the COVID-19 pandemic, it’s important to have them up-to-date. Read on to learn more. … [Read more...] about Staying Current is Especially Important in the Pandemic
In order to understand the gift tax, you have to absorb some background information about the federal estate tax. This levy carries a 40 percent maximum rate, so it can significantly impact your legacy if you are exposed. The good news is that most people don’t pay the tax, because there is a high credit or exclusion. This is the amount that can be transferred before the estate tax would be applied on the remainder. At the time of this writing, the exclusion is $11.58 million. You do not … [Read more...] about Gift Tax 101
Many people think that estate planning is a very simple matter. When you are senior citizen, you record your final wishes in a last will, and that’s the end of the story. In reality, this is a gross oversimplification on a couple of different levels. First, estate planning is one of the core responsibilities of adulthood. You should put your estate plan in place as soon as you have other people depending on you for financial support. In fact, it can be argued that it is even more important … [Read more...] about Will vs. Trust: How Do You Choose?
Many people form a false impression about the way that an estate is administered when a last will was executed by the decedent. They think that the will is read to family members by the executor, and after everyone knows what it contains, the executor distributes the resources. In reality, this is not the way that it works. The will would be admitted to probate, and the executor would handle the estate administration tasks under the supervision of the court. Probate Drawbacks Probate gives … [Read more...] about Why Do People Avoid Probate?
When you plan your estate, you should see the big picture. Yes, you have to decide exactly how you want your assets to be distributed after you are gone. At the same time, it is wise to consider the process of estate administration, because it can impact your decisions. In this post, we will provide some useful information that may help you make the right choice. Wills and Probate If you use a last will as your vehicle of asset transfer, you would name an executor or personal representative … [Read more...] about Estate Administration: Efficiency Is Key