QuickTips Index
When is a Federal Estate Tax Return Required to Be Filed?
A federal estate tax return, or IRS Form 706, is required to be filed only after specific criteria with regard to an estate are met. Even so, some estates may be required to prepare IRS Form 706 strictly for state estate tax purposes, while others should consider filing IRS Form 706 even if a return is not required to be filed.
What Gifts Are Not Subject to the Gift Tax?
Not all transfers of property from one person to a nonspouse beneficiary where no cash or other monetary value is exchanged are taxable for federal gift tax purposes. Currently there are three types of such transfers that are not actually considered gifts at all for federal gift tax purposes. Learn about them here.
How is the Gift Tax Calculated?
The federal gift tax applies to all gifts that you make during the course of your lifetime. However, every U.S. citizen is given a lifetime exemption from paying gift taxes. Thus, a gift tax will only be owed if the total value of all of the gifts that you've made exceeds your lifetime exemption from gift taxes.
What is the Gift Tax and Who Pays It?
The federal gift tax is one of the most misunderstood and often ignored taxes assessed by the federal government. Two states also assess their own gift tax - Connecticut and Tennessee. Learn what the gift tax is and who is responsible for paying it.
Are Gifts to Your Spouse Taxable?
Are gifts to your spouse taxable? The answer to this question depends on the answer to two other questions: (1) Is your spouse a U.S. citizen? and (2) Is the gift to your spouse a gift of a present or future interest?
What Gifts Are Subject to the Gift Tax?
The federal gift tax applies to all gifts that you make during the course of your lifetime. Whether a gift will be taxable for gift tax purposes depends on three things: (1) Who the recipient of the gift is, (2) The fair market value of the gifted property, and (3) Whether the gift is of a present or future interest.
How to Protect Your Family from Creditors, Lawsuits and Divorcing Spouses
A very important aspect of planning your estate should be creating a plan that will protect your children or other beneficiaries from creditors, lawsuits, and divorcing spouses after you are gone. This can be easily accomplished by setting up lifetime trusts for the benefit your beneficiaries instead of leaving your property outright, in stages, or at specific ages.
Do You and Your Spouse Still Have "I Love You" Wills?
Do you and your spouse have "I Love You" wills? If so, then you are missing out on some incredible estate planning opportunities, including estate tax planning, asset protection planning, and keeping your property in your family instead of allowing it to get into the hands of a second or later spouse's family.
How to Plan for Medical Emergencies
Even if you're young and healthy, an unforeseen accident or sudden illness can devastate your loved ones both emotionally and financially. Having the right documents in place to deal with a medical emergency is a must for everyone, particularly if you're married or in a committed relationship and/or have young children.
Is Your Advance Medical Directive Valid?
Is your Advance Medical Directive too old? In 2001 Congress enacted rules governing the Health Insurance Portability and Accountability Act of 1996 (or HIPAA). Part of the act deals with the privacy of medical records and who can and cannot have access to them. Thus, if your Advance Medical Directive was written before 2001, then its too old.
What's the Difference Between a Living Will and a Living Trust?
Many people confuse Living Wills with Living Trusts, and yet these legal documents serve two completely different purposes. Learn what a Living Will is, what a Living Trust is, and how to never confuse these two documents ever again.
How to Protect Your Assets from Creditors and Lawsuits
With the U.S. economy in distress and property foreclosures at all time highs, lately asset protection has become a hot topic. But what exactly is it, and how can you protect your assets?
How to Fund an Irrevocable Life Insurance Trust
If you have decided to create an Irrevocable Life Insurance Trust, or ILIT for short, to hold and own your life insurance policies, then once the trust agreement has been signed you will need to fund the trust with your insurance policies. Here you will find the steps necessary to fund existing or new policies into your ILIT.
Which States Allow for ABC Trust Planning?
When planning to reduce federal estate taxes, married couples can make use of the AB Trust system to effectively transfer two times the federal estate tax exemption to their heirs. But in states that collect their own separate estate tax, AB Trust planning can cause part of the B Trust to be taxed when the first spouse dies. In response, the the ABC Trust system was created, which in 10 states allows payment of all estate taxes to be deferred until after the surviving spouse's death.
Will Your Last Will and Testament Work in All States?
Will your Last Will and Testament work if you move to a new state? Like many aspects of estate planning, the answer to this question is, "it depends." Find out why your Last Will and Testament may not work the way you expect it to in your new state.
What's the Difference Between an Estate Tax an an Inheritance Tax?
While the terms "estate tax" and "inheritance tax" are often used interchangeably when referring to death taxes, these terms refer to two completely different types of taxes. Learn the difference between these two taxes and if your state collects either or both.
Which States Collect a State Inheritance Tax?
Currently 18 states and the District of Columbia collect an estate tax at the state level, 7 states which are listed in this article collect an inheritance tax at the state level, and 2 states collect both an estate tax and an inheritance tax. Find out if your state collects an inheritance tax.
Which States Do Not Collect a State Estate Tax?
Currently 32 do not collect an estate tax at the state level. Find out if your state is one of them.
Which States Still Collect a State Estate Tax?
Currently 18 states and the District of Columbia collect an estate tax at the state level. Find out if your state is one of them.
How Much Should Estate Planning Documents Cost?
"How much do you charge for estate planning documents?" or "How much does a will cost?" Often times these are the first words out of a potential client's mouth. But like with many things that have to do with estate planning, or any other legal advice for that matter, the answer is "It depends."
Understanding the State Estate Tax Exemption Trap
Currently 18 states and the District of Columbia impose their own separate estate tax in addition to the federal estate tax. In the majority of these states there's a "gap" between the federal estate tax exemption and the state estate tax exemption which for married couples can cause a state estate tax to be due when the first spouse dies even though no federal estate tax will be due. Learn what this "gap" is and how to deal with it if it applies in your state.
Michael Jackson's Children - Follow the Custody Court Proceedings Here
If you're interested in keeping up to date on what's going on with the custody and guardianship of Michael Jackson's children, Prince, Paris, and Blanket, then follow the links and instructions provided in this article.
What is an Estate Lawyer and What Does an Estate Lawyer Do?
An estate lawyer is an attorney who, through years of mentoring, continuing legal education and experience, understands how to advise Personal Representatives/Executors and estate beneficiaries on settling all of the affairs of a deceased person.
Michael Jackson's Estate - Follow the Probate Court Proceedings Here
If you're interested in keeping up to date on what's going on with the probate of Michael Jackson's will and estate, then follow the links and instructions provided in this article.
Can You Disinherit Your Children?
While in all 50 states and the District of Columbia there are community property and elective share laws in place to protect the rights of a surviving spouse who has been intentionally cut out of their spouse's Last Will and Testament or Revocable Living Trust, in all but one state you are completely free to disinherit your children.