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
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Will vs. Trust: How Do You Choose?
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?
Why Do People Avoid Probate?
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 DrawbacksProbate gives … [Read more...] about Why Do People Avoid Probate?
Estate Administration: Efficiency Is Key
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 ProbateIf 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
Remarry With Peace of Mind
The estate planning attorneys at our firm have many tools at our disposal. There are countless different scenarios that can exist, and we have seen all of them over the years. Our experience allows us to immediately recommend the appropriate solution for each respective client that we counsel.In many cases, they are very pleasantly surprised to find out that the perfect estate planning vehicle exists to satisfy objectives that seemed complicated to them. With this in mind, let’s look at the … [Read more...] about Remarry With Peace of Mind
Clearing Up Inheritance Planning Misconceptions
A lot of people make inheritance planning mistakes because they harbor certain misconceptions. In this post, we will look at a few common misconceptions so you can go forward with sound information.Trusts are only useful for wealthy people.Very high net worth individuals have to be concerned about the federal estate tax, because it carries a whopping 40 percent maximum rate. These people utilize irrevocable trusts to mitigate their exposure.This being stated, the revocable living trust … [Read more...] about Clearing Up Inheritance Planning Misconceptions
Has Your Estate Plan Been Reviewed?
Studies show that the vast majority of American adults are completely unprepared from an estate planning perspective. Though it should be viewed as a responsibility that all adults must address, people tend to put it on the back burner.There is no questioning the fact that dying is the last thing on everyone’s to-do list, but it is also something that happens to all of us. As they say, “resistance is futile.” In spite of this obvious reality, inaction is the exception rather than the rule, … [Read more...] about Has Your Estate Plan Been Reviewed?
Jim Morrison Estate Saga Is Instructive
There are a handful of classic rock stars that never seem to completely drop out of the collective consciousness, and Jim Morrison is one of them. The lead singer of The Doors was a very talented, enigmatic individual that passed away in 1971 at the age of 27.He had a significant amount of wealth at the time of his passing, and his likeness and his work are bringing in revenue to this day. Clearly, his estate was, and is, very valuable. Since he lived a freewheeling lifestyle and he was only … [Read more...] about Jim Morrison Estate Saga Is Instructive
Explanations of Five Common Estate Planning Terms
When you decide to start educating yourself about estate planning, you are invariably going to come into contact with some unfamiliar terms. This is fully understandable, and in this post, we will look at five terms that you may come across and provide some basic definitions.Custodial CareThe majority of senior citizens will need help with their activities of daily living eventually. They will never recover from the underlying cause of the limitations. For example, a person may have severe … [Read more...] about Explanations of Five Common Estate Planning Terms
What Is Estate Tax Exclusion Portability?
If you have been very successful from a financial standpoint, you have to be concerned about the potential impact of estate taxes. Many people contend that the death tax is not fair, because your estate is comprised of resources that you have been able to retain after paying innumerable taxes throughout your life.Why should your death be a taxable event in and of itself?This a good question, but whether it is fair or not, the federal estate tax is a fact of life. The good news is that … [Read more...] about What Is Estate Tax Exclusion Portability?