Wills & Estate Planning: Most Popular Articles
These articles are the most popular over the last month.
Revocable vs. Irrevocable
When it comes to understanding trusts, knowing the difference between revocable and irrevocable trusts is crucial. If you ask for a revocable trust and get an irrevocable one, or vice versa, the legal and tax consequences will be significant.
When it comes to understanding trusts, knowing the difference between revocable and irrevocable trusts is crucial. If you ask for a revocable trust and get an irrevocable one, or vice versa, the legal and tax consequences will be significant.
State Estate Tax Chart
Currently 18 states and the District of Columbia collect a state estate tax. Here you'll find a chart that lists the current state estate tax exemptions for Connecticut, Delaware, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Vermont, and Washington.
Currently 18 states and the District of Columbia collect a state estate tax. Here you'll find a chart that lists the current state estate tax exemptions for Connecticut, Delaware, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Vermont, and Washington.
Estate Tax Exemption Chart
The exemption from federal estate taxes has increased over the past 12 years while the estate tax rate has decreased. Here you'll find a chart that shows the increases in the exemption and decreases in the tax rate from 1997 through 2009.
The exemption from federal estate taxes has increased over the past 12 years while the estate tax rate has decreased. Here you'll find a chart that shows the increases in the exemption and decreases in the tax rate from 1997 through 2009.
Inheritance Tax Chart
Currently 18 states and the District of Columbia collect a state estate tax, while seven states collect a state inheritance tax. Learn the difference between an estate tax and an inheritance tax and view a chart that summarizes the inheritance tax laws of Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.
Currently 18 states and the District of Columbia collect a state estate tax, while seven states collect a state inheritance tax. Learn the difference between an estate tax and an inheritance tax and view a chart that summarizes the inheritance tax laws of Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.
Estate Tax Liability
Whether your estate will be liable for estate taxes depends upon the value of your gross estate, the amount of debt owed by you at the time of your death, the total expenses that will be incurred while settling your estate, and any deductions that your estate can take. Here's how to figure out an estimate of your estate tax liability.
Whether your estate will be liable for estate taxes depends upon the value of your gross estate, the amount of debt owed by you at the time of your death, the total expenses that will be incurred while settling your estate, and any deductions that your estate can take. Here's how to figure out an estimate of your estate tax liability.
What is an AB Trust?
Married couples can maximize the use of both of their federal exemptions from estate tax by using AB Trusts as part of their estate plan. Here's how the AB Trust system works.
Married couples can maximize the use of both of their federal exemptions from estate tax by using AB Trusts as part of their estate plan. Here's how the AB Trust system works.
Overview of Estate Tax Law
In this post election year, the federal estate tax is truly up in the air. Currently the federal exemption from estate taxes and estate tax rate are supposed to change as shown below in the "Current Federal Estate Tax Schedule."
In this post election year, the federal estate tax is truly up in the air. Currently the federal exemption from estate taxes and estate tax rate are supposed to change as shown below in the "Current Federal Estate Tax Schedule."
How to Minimize Taxes
Currently the exemption from federal estate taxes is $3,500,000. Many states also assess estate taxes and/or inheritance taxes on the assets owned by residents and real estate owned by nonresidents. For people whose estates are taxable at the state and/or federal level, they have five options for reducing their estate tax bill.
Currently the exemption from federal estate taxes is $3,500,000. Many states also assess estate taxes and/or inheritance taxes on the assets owned by residents and real estate owned by nonresidents. For people whose estates are taxable at the state and/or federal level, they have five options for reducing their estate tax bill.
Death/Estate/Inheritance Taxes
There are two types of taxes that can be assessed against your property after you die - estate taxes and inheritance taxes, both of which are commonly referred to as death taxes.
There are two types of taxes that can be assessed against your property after you die - estate taxes and inheritance taxes, both of which are commonly referred to as death taxes.
Revocable Living Trusts
A Revocable Living Trust is a legal document that is created by an individual, called a Trustmaker, to hold and own the Trustmaker's assets, which are in turn invested and spent for the benefit of the Trustmaker by an individual or institution called the Trustee.
A Revocable Living Trust is a legal document that is created by an individual, called a Trustmaker, to hold and own the Trustmaker's assets, which are in turn invested and spent for the benefit of the Trustmaker by an individual or institution called the Trustee.
Joint and POD Accounts
There are two common and simple ways to avoid probate - using joint accounts and using payable on death accounts (POD), also called transfer on death accounts (TOD), as well as in trust for accounts (ITF), and Totten trusts.
There are two common and simple ways to avoid probate - using joint accounts and using payable on death accounts (POD), also called transfer on death accounts (TOD), as well as in trust for accounts (ITF), and Totten trusts.
Joint Ownership
There are three basic ways that you can own property: in your individual name, in joint names with others, and through contract rights. Joint ownership comes in three forms: with rights of survivorship, as community property, and as tenants in common.
There are three basic ways that you can own property: in your individual name, in joint names with others, and through contract rights. Joint ownership comes in three forms: with rights of survivorship, as community property, and as tenants in common.
ILITs
Many people are not aware that all of the proceeds from their life insurance policies will be included their estate for estate tax purposes. Learn how to remove life insurance proceeds from your estate by using an Irrevocable Life Insurance Trust, or ILIT.
Many people are not aware that all of the proceeds from their life insurance policies will be included their estate for estate tax purposes. Learn how to remove life insurance proceeds from your estate by using an Irrevocable Life Insurance Trust, or ILIT.
When is Probate Necessary?
A frequent question I'm asked as an estate planning attorney is "When is probate really necessary?" As with many estate planning questions, the answer depends upon the specific laws of the state where you live at the time of your death, as well as the laws of any other state where you own real estate. Here is a general list of reasons why an estate will need to be probated.
A frequent question I'm asked as an estate planning attorney is "When is probate really necessary?" As with many estate planning questions, the answer depends upon the specific laws of the state where you live at the time of your death, as well as the laws of any other state where you own real estate. Here is a general list of reasons why an estate will need to be probated.
Future of Estate Tax
Where the federal estate tax will go beyond 2009 is entirely up in the air. Under current law, the tax is scheduled to completely disappear in 2010. But don't be surprised if the federal estate tax not only sticks around but ends up taking a significant chunk out of your beneficiaries' pockets.
Where the federal estate tax will go beyond 2009 is entirely up in the air. Under current law, the tax is scheduled to completely disappear in 2010. But don't be surprised if the federal estate tax not only sticks around but ends up taking a significant chunk out of your beneficiaries' pockets.
What is an Irrevocable Trust?
An Irrevocable Trust is one that by its design can't be amended, modified, changed or revoked. In other words, once an Irrevocable Trust has been created, the written terms of the trust agreement are generally written in stone and can't be tweaked for any reason in the future.
An Irrevocable Trust is one that by its design can't be amended, modified, changed or revoked. In other words, once an Irrevocable Trust has been created, the written terms of the trust agreement are generally written in stone and can't be tweaked for any reason in the future.
Changing an Irrevocable Trust
By its design an Irrevocable Trust is just that, irrevocable, and so as a basic rule an Irrevocable Trust can't be amended, modified, changed, or revoked. But with that said, here are some things to consider if you think that you're stuck with the terms of an Irrevocable Trust.
By its design an Irrevocable Trust is just that, irrevocable, and so as a basic rule an Irrevocable Trust can't be amended, modified, changed, or revoked. But with that said, here are some things to consider if you think that you're stuck with the terms of an Irrevocable Trust.
Pros and Cons of Trusts
When considering whether or not to include a Revocable Living Trust as part of your estate plan, you'll need to understand the pros and cons of using a trust instead of just a Last Will and Testament.
When considering whether or not to include a Revocable Living Trust as part of your estate plan, you'll need to understand the pros and cons of using a trust instead of just a Last Will and Testament.
Trustee Fees
If you've been appointed to serve as the Successor Trustee of Revocable Living Trust after the Trustmaker has died, then in most cases you'll be entitled to get paid for the services you provide on behalf of the trust. How much you'll get paid and when you'll receive it depends on many factors.
If you've been appointed to serve as the Successor Trustee of Revocable Living Trust after the Trustmaker has died, then in most cases you'll be entitled to get paid for the services you provide on behalf of the trust. How much you'll get paid and when you'll receive it depends on many factors.
Annual Exclusion Chart
The annual amount exempt from the federal gift tax, called the annual gift tax exclusion, was indexed for inflation beginning in 1997 and has slowly increased over the years. Here you'll find a chart that shows the increase in the annual gift tax exclusion from 1997 through 2009.
The annual amount exempt from the federal gift tax, called the annual gift tax exclusion, was indexed for inflation beginning in 1997 and has slowly increased over the years. Here you'll find a chart that shows the increase in the annual gift tax exclusion from 1997 through 2009.
How to Open a Probate Estate
In general, there are 8 steps that should be followed in order to open a probate estate with the appropriate state court, but some of the steps can be skipped if the decedent didn't leave a Last Will and Testament or left a pile of papers to sort through. Learn what these 8 steps are and how someone gets appointed to serve as a Personal Representative/Executor.
In general, there are 8 steps that should be followed in order to open a probate estate with the appropriate state court, but some of the steps can be skipped if the decedent didn't leave a Last Will and Testament or left a pile of papers to sort through. Learn what these 8 steps are and how someone gets appointed to serve as a Personal Representative/Executor.
How Long Will Probate Take?
One of the first questions I'm asked when I sit down with the Personal Representative of a new estate is "How long is probate going to take?" The answer depends on many factors.
One of the first questions I'm asked when I sit down with the Personal Representative of a new estate is "How long is probate going to take?" The answer depends on many factors.
Trusts for Probate Avoidance
Another common way to avoid probate is to establish and fund a Revocable Living Trust.
Another common way to avoid probate is to establish and fund a Revocable Living Trust.
Wills vs. Trusts
A question that I'm often asked as an estate planning attorney is "How do I know if I need a trust instead of a simple will?" Many people assume that revocable living trusts are just for the very wealthy, but the benefits that they offer to the average person can be significant. Here are some factors to consider when assessing your need for a simple will versus a revocable living trust.
A question that I'm often asked as an estate planning attorney is "How do I know if I need a trust instead of a simple will?" Many people assume that revocable living trusts are just for the very wealthy, but the benefits that they offer to the average person can be significant. Here are some factors to consider when assessing your need for a simple will versus a revocable living trust.
What is Probate?
Probate is the court-supervised process of locating and determining the value of a deceased person's assets, paying the deceased person's final bills and taxes, and then distributing what's left to the deceased person's heirs.
Probate is the court-supervised process of locating and determining the value of a deceased person's assets, paying the deceased person's final bills and taxes, and then distributing what's left to the deceased person's heirs.
Gross Estate Assets
The first step in figuring out if your estate will be liable for estate taxes is to determine what is included in your gross estate. Here's how.
The first step in figuring out if your estate will be liable for estate taxes is to determine what is included in your gross estate. Here's how.
Exemption From Gift Taxes
Definition of Exemption from Gift Taxes
Definition of Exemption from Gift Taxes
Paying Off Debts
If your loved one has died and the medical and credit card bills have started piling up, then you'll need to understand who will be responsible for paying off all of these debts and in what amounts. Learn who will have to pay and how much.
If your loved one has died and the medical and credit card bills have started piling up, then you'll need to understand who will be responsible for paying off all of these debts and in what amounts. Learn who will have to pay and how much.
Duties of a Successor Trustee
In setting up your Revocable Living Trust, you'll be asked to name a Successor Trustee to administer your trust after you die. Learn what a Successor Trustee is required to do when settling your trust after you die.
In setting up your Revocable Living Trust, you'll be asked to name a Successor Trustee to administer your trust after you die. Learn what a Successor Trustee is required to do when settling your trust after you die.
Funding a Trust
In order for a Revocable Living Trust to function properly, it's not enough for the Trustmaker to simply the sign trust agreement. After the agreement has been signed, the Trustmaker must “fund” his or her assets into the trust. But what does this mean?
In order for a Revocable Living Trust to function properly, it's not enough for the Trustmaker to simply the sign trust agreement. After the agreement has been signed, the Trustmaker must “fund” his or her assets into the trust. But what does this mean?
Who Gets the Will?
When someone dies, you've probably seen in the movies or on TV or read in a book about "the reading of the Will." Unfortunately, this is purely a theatrical device designed to create drama in a fictional story - today there's no legal requirement that a Will be read to anyone. Instead, the estate attorney has to determine who should be sent a copy of the Tesator's Will.
When someone dies, you've probably seen in the movies or on TV or read in a book about "the reading of the Will." Unfortunately, this is purely a theatrical device designed to create drama in a fictional story - today there's no legal requirement that a Will be read to anyone. Instead, the estate attorney has to determine who should be sent a copy of the Tesator's Will.
What is a Trustee?
A Trustee is the fiduciary put in charge of overseeing the day to day management of property owned by a trust. A Trustee can be an individual, an institution, such as a bank or trust company, or a combination of both.
A Trustee is the fiduciary put in charge of overseeing the day to day management of property owned by a trust. A Trustee can be an individual, an institution, such as a bank or trust company, or a combination of both.
Overview of Taxes
When preparing or updating your estate plan, you will need to have a basic understanding of the different types of taxes that can affect your estate - gift taxes, estate taxes, inheritance taxes, generation skipping (or GST) taxes, and income taxes.
When preparing or updating your estate plan, you will need to have a basic understanding of the different types of taxes that can affect your estate - gift taxes, estate taxes, inheritance taxes, generation skipping (or GST) taxes, and income taxes.
What is the Estate Tax?
The federal estate tax is a tax collected on the transfer of a person's assets to his or her loved ones after death. Every U.S. citizen's estate is subject to the tax, but not all estates will actually have to pay the tax. Find out why.
The federal estate tax is a tax collected on the transfer of a person's assets to his or her loved ones after death. Every U.S. citizen's estate is subject to the tax, but not all estates will actually have to pay the tax. Find out why.
What is a Trust?
A trust is a legal agreement that has three parties to it: the Trustmaker, the Trustee, and the Beneficiary.
A trust is a legal agreement that has three parties to it: the Trustmaker, the Trustee, and the Beneficiary.
Who Pays the Bills?
When a person dies, one of the biggest concerns of the surviving family members becomes what bills they'll be responsible for paying and in what amounts. Learn who has to pay and why.
When a person dies, one of the biggest concerns of the surviving family members becomes what bills they'll be responsible for paying and in what amounts. Learn who has to pay and why.
State Estate Tax Gap
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.
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.
Death of POD Owner
If your loved one has died and you're the beneficiary of a payable on death or similar type of account, then you'll need to understand the tax and other consequences of inheriting the account.
If your loved one has died and you're the beneficiary of a payable on death or similar type of account, then you'll need to understand the tax and other consequences of inheriting the account.
Reasonable Fees
There are many factors to consider when it comes to determining the reasonableness of an attorney's fees. Aside from the attorney's experience in handling legal matters similar to yours, local and even state wide business practices also influence what an attorney will charge for a particular matter. Here's a list of factors to consider when determining if the fees quoted to you by a qualified estate planning attorney are reasonable.
There are many factors to consider when it comes to determining the reasonableness of an attorney's fees. Aside from the attorney's experience in handling legal matters similar to yours, local and even state wide business practices also influence what an attorney will charge for a particular matter. Here's a list of factors to consider when determining if the fees quoted to you by a qualified estate planning attorney are reasonable.
Estate vs. 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.
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.
Life Insurance Beneficiaries
Learn what to consider when choosing the beneficiaries of life insurance policies so that the beneficiary designations will compliment the terms of your Revocable Living Trust.
Learn what to consider when choosing the beneficiaries of life insurance policies so that the beneficiary designations will compliment the terms of your Revocable Living Trust.
Estate Tax Asset Values
When calculating the value of a gross estate for federal estate tax purposes, there are two different values that can be used: the "date of death" value and the "alternate valuation date" value.
When calculating the value of a gross estate for federal estate tax purposes, there are two different values that can be used: the "date of death" value and the "alternate valuation date" value.
Grounds for Contesting a Will
At least once a month I receive a call from a potential client who wants to contest the validity of a loved one's will, and at least once a month I explain the four legal reasons for challenging a will, how difficult it is to prove any one of the four, and how much it will cost to proceed. Most of the time I never hear from the potential client again. With that said, here are the four legal grounds for contesting the validity of a will.
At least once a month I receive a call from a potential client who wants to contest the validity of a loved one's will, and at least once a month I explain the four legal reasons for challenging a will, how difficult it is to prove any one of the four, and how much it will cost to proceed. Most of the time I never hear from the potential client again. With that said, here are the four legal grounds for contesting the validity of a will.
Time for Settling a Trust
How long it will take to settle a Revocable Living Trust after the Trustmaker dies depends on many factors.
How long it will take to settle a Revocable Living Trust after the Trustmaker dies depends on many factors.
Tenants in Common
Definition of Tenants in Common
Definition of Tenants in Common
Revocable Trust Myths
Throughout my years practicing as an estate planning attorney, I've run across some common misconceptions that people have about Revocable Living Trusts. In some situations they believe that a Revocable Living Trust will do something that it really doesn't, and in other situations they believe that a Revocable Living Trust won't do something that it actually does. Learn what these common myths are and if you've fallen for any of them.
Throughout my years practicing as an estate planning attorney, I've run across some common misconceptions that people have about Revocable Living Trusts. In some situations they believe that a Revocable Living Trust will do something that it really doesn't, and in other situations they believe that a Revocable Living Trust won't do something that it actually does. Learn what these common myths are and if you've fallen for any of them.
Fund Your Trust Now
When it comes to funding your Revocable Living Trust, this step is just as important as setting up your trust.
When it comes to funding your Revocable Living Trust, this step is just as important as setting up your trust.
Per Stirpes vs. Per Capita
When it comes to estate planning terms, two that you'll need to be familiar with are “per stirpes” and “per capita.” These are Latin terms that are commonly used in Last Will and Testaments and Revocable Living Trusts to describe how your property is to be left to your beneficiaries.
When it comes to estate planning terms, two that you'll need to be familiar with are “per stirpes” and “per capita.” These are Latin terms that are commonly used in Last Will and Testaments and Revocable Living Trusts to describe how your property is to be left to your beneficiaries.
How Much Does Probate Cost?
If you don't have an estate plan or have failed to completely fund your Revocable Living Trust, then your loves ones will be faced with probating some or all of your assets. The overall cost of probate will vary depending on the type and value of the property that's being probated.
If you don't have an estate plan or have failed to completely fund your Revocable Living Trust, then your loves ones will be faced with probating some or all of your assets. The overall cost of probate will vary depending on the type and value of the property that's being probated.
Exemption From Estate Taxes
Definition of Exemption From Estate Taxes
Definition of Exemption From Estate Taxes
Personal Representative Fees
If you've been appointed to serve as the Personal Representative or Executor of an estate, then in most cases you'll be entitled to get paid for the services you provide on behalf of the estate. How much you'll receive and when you'll receive it depends on many factors.
If you've been appointed to serve as the Personal Representative or Executor of an estate, then in most cases you'll be entitled to get paid for the services you provide on behalf of the estate. How much you'll receive and when you'll receive it depends on many factors.
What is a Probate Judge?
A probate judge is the judicial official who is in charge of overseeing all aspects of probate estates in his or her jurisdiction. A probate judge's role in the administration of an estate will vary based upon whether or not the decedent died testate or intestate, whether or not the Personal Representative, heirs at law of the decedent, and the beneficiaries named in the Last Will and Testament get along, and whether or not a will contest is filed.
A probate judge is the judicial official who is in charge of overseeing all aspects of probate estates in his or her jurisdiction. A probate judge's role in the administration of an estate will vary based upon whether or not the decedent died testate or intestate, whether or not the Personal Representative, heirs at law of the decedent, and the beneficiaries named in the Last Will and Testament get along, and whether or not a will contest is filed.
Definition of Per Stirpes
Per Stirpes
Per Stirpes
Death of a Joint Owner
If your loved one has died and you're the surviving joint owner of an account held with rights of survivorship or as tenants by the entirety, then you'll need to understand the tax and other consequences of inheriting the account.
If your loved one has died and you're the surviving joint owner of an account held with rights of survivorship or as tenants by the entirety, then you'll need to understand the tax and other consequences of inheriting the account.
Funding Accounts
Funding bank accounts and investment or brokerage accounts into your Revocable Living Trust can be easy or complicated depending upon the rules followed by the institutions that hold your accounts.
Funding bank accounts and investment or brokerage accounts into your Revocable Living Trust can be easy or complicated depending upon the rules followed by the institutions that hold your accounts.
Benefits of Trusts vs. Wills
When it comes to deciding whether or not you should set up a Revocable Living Trust as part of your estate plan, you'll need to understand the three main benefits that a Revocable Living Trust offers over a Last Will and Testament.
When it comes to deciding whether or not you should set up a Revocable Living Trust as part of your estate plan, you'll need to understand the three main benefits that a Revocable Living Trust offers over a Last Will and Testament.
How to Calculate Gift Tax
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.
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.
Last Will and Testament
A Last Will and Testament is a legal document that's the first building block to your estate plan. After determining your need for an estate plan, your attorney will recommend either a will-based plan or a trust-based plan. Your Last Will and Testament will take on significantly different roles depending upon the type of plan that has been recommended.
A Last Will and Testament is a legal document that's the first building block to your estate plan. After determining your need for an estate plan, your attorney will recommend either a will-based plan or a trust-based plan. Your Last Will and Testament will take on significantly different roles depending upon the type of plan that has been recommended.
Inheritance of an Adult
When deciding who you want to inherit your estate after you die, aside from figuring out who will get what, you'll need to determine how and when they'll get it. For adult beneficiaries, there are three options for giving them their inheritance: outright, in stages, or in a lifetime trust.
When deciding who you want to inherit your estate after you die, aside from figuring out who will get what, you'll need to determine how and when they'll get it. For adult beneficiaries, there are three options for giving them their inheritance: outright, in stages, or in a lifetime trust.
What is the Gift Tax?
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.
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.
Annual Exclusion Gift
Definition of Annual Exclusion Gift
Definition of Annual Exclusion Gift
What Are Non Probate Assets?
Non probate assets are simply assets that won't need to be probated after you die. But will they be included in the value of your estate for estate tax purposes? Find out.
Non probate assets are simply assets that won't need to be probated after you die. But will they be included in the value of your estate for estate tax purposes? Find out.
Planning for Death
What will happen to your property if you don't make an estate plan before you die? What does it mean to have died “intestate?” How does a Revocable Living Trust fit into an estate plan? Learn this and more.
What will happen to your property if you don't make an estate plan before you die? What does it mean to have died “intestate?” How does a Revocable Living Trust fit into an estate plan? Learn this and more.
States and Inheritance Taxes
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.
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.
Procedures to Fund a Trust
In order for a Revocable Living Trust to function properly, it's not enough for the Trustmaker to simply sign the trust agreement. After the agreement has been signed, the Trustmaker must “fund” his or her assets into the trust. There are three general procedures that should be followed in order to properly fund a Revocable Living Trust.
In order for a Revocable Living Trust to function properly, it's not enough for the Trustmaker to simply sign the trust agreement. After the agreement has been signed, the Trustmaker must “fund” his or her assets into the trust. There are three general procedures that should be followed in order to properly fund a Revocable Living Trust.
States and Estate Taxes
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.
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 to Probate an Estate
Most people have little experience dealing with what happens after their loved one dies and they get appointed as Personal Representative/Executor to settle the estate. The purpose of this guide is to provide a general overview of the 6 steps required to probate an estate.
Most people have little experience dealing with what happens after their loved one dies and they get appointed as Personal Representative/Executor to settle the estate. The purpose of this guide is to provide a general overview of the 6 steps required to probate an estate.
No Will, Then What?
If you fail to make a Last Will and Testament before you die, then your estate will be divided up based on the intestacy laws of the state where you live at the time of your death and the intestacy laws of any other state where you own real estate and/or tangible personal property.
If you fail to make a Last Will and Testament before you die, then your estate will be divided up based on the intestacy laws of the state where you live at the time of your death and the intestacy laws of any other state where you own real estate and/or tangible personal property.
What Does a Personal Rep Do?
In setting up your estate plan, you'll be asked to name a number of fiduciaries to act on your behalf in various situations. One such fiduciary will be your Personal Representative, also called an Executor/Executrix or Administrator in some jurisdictions, named under your Last Will and Testament. Learn what a Personal Representative is required to do when administering your estate.
In setting up your estate plan, you'll be asked to name a number of fiduciaries to act on your behalf in various situations. One such fiduciary will be your Personal Representative, also called an Executor/Executrix or Administrator in some jurisdictions, named under your Last Will and Testament. Learn what a Personal Representative is required to do when administering your estate.
Trust Settlement Costs
A common misconception about Revocable Living Trusts is that there's little or no cost involved in settling the trust after the Trustmaker dies. This is absolutely not true. While the overall cost of settling a Revocable Living Trust should be less than settling an estate through the probate court, there's plenty of fees involved in settling a trust. Learn what they are.
A common misconception about Revocable Living Trusts is that there's little or no cost involved in settling the trust after the Trustmaker dies. This is absolutely not true. While the overall cost of settling a Revocable Living Trust should be less than settling an estate through the probate court, there's plenty of fees involved in settling a trust. Learn what they are.
Funding Real Estate
Deeding real estate into your trust is an important step, particularly to avoid ancillary probate if you own real estate in more than one state.
Deeding real estate into your trust is an important step, particularly to avoid ancillary probate if you own real estate in more than one state.
10 Steps to an Estate Plan
Estate planning is a process that consists of ten distinct steps. Learn what these steps are so that you, along with help from your estate planning attorney, can create a good estate plan.
Estate planning is a process that consists of ten distinct steps. Learn what these steps are so that you, along with help from your estate planning attorney, can create a good estate plan.
Paying a Minor's Inheritance
When deciding who you want to inherit your estate after you die, aside from figuring out who will get what, you'll need to determine how and when they'll get it. If your plan will involve a minor beneficiary, legally they can't inherit property, so anything left outright to a minor will either end up in a court-supervised guardianship or in a restricted account as dictated by a judge. Thus, you'll need to plan carefully for minor beneficiaries.
When deciding who you want to inherit your estate after you die, aside from figuring out who will get what, you'll need to determine how and when they'll get it. If your plan will involve a minor beneficiary, legally they can't inherit property, so anything left outright to a minor will either end up in a court-supervised guardianship or in a restricted account as dictated by a judge. Thus, you'll need to plan carefully for minor beneficiaries.
Essential Planning Documents
Estate planning is about legally organizing your affairs to deal with the possibility of mental incapacity and certain death. Depending on your current family and financial situations, your estate plan will include four or five essential legal documents.
Estate planning is about legally organizing your affairs to deal with the possibility of mental incapacity and certain death. Depending on your current family and financial situations, your estate plan will include four or five essential legal documents.
Fees for Estate Planning
"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."
"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."
Mistakes in Existing Plans
List of common mistakes continued...
List of common mistakes continued...
Definition of Inheritance Tax
Definition of Inheritance Tax
Definition of Inheritance Tax
What is Asset Protection?
With the economy slowing down and money becoming tight, asset protection has become a hot topic in recent months. Learn what asset protection planning is and how to avoid the most common planning mistake.
With the economy slowing down and money becoming tight, asset protection has become a hot topic in recent months. Learn what asset protection planning is and how to avoid the most common planning mistake.
Creating Lifetime Trusts
When exploring the options for passing your property on to your beneficiaries, including your spouse and children, after you die, one option to consider is holding the property in a separate lifetime trust for each beneficiary. This will offer asset protection for your spouse and other beneficiaries by creating a legal barrier between the trust property and the beneficiary's creditors or a divorcing spouse.
When exploring the options for passing your property on to your beneficiaries, including your spouse and children, after you die, one option to consider is holding the property in a separate lifetime trust for each beneficiary. This will offer asset protection for your spouse and other beneficiaries by creating a legal barrier between the trust property and the beneficiary's creditors or a divorcing spouse.
What Can Go Into a Trust?
If you've created a Revocable Living Trust to plan for mental disability and avoid probate and you think that your estate plan is done once you've signed the trust agreement, it isn't. Why not? Because after your Revocable Living Trust has been signed you'll need to "fund" it with your assets. Learn what types of assets can be retitled into the name of your Revocable Living Trust.
If you've created a Revocable Living Trust to plan for mental disability and avoid probate and you think that your estate plan is done once you've signed the trust agreement, it isn't. Why not? Because after your Revocable Living Trust has been signed you'll need to "fund" it with your assets. Learn what types of assets can be retitled into the name of your Revocable Living Trust.
Checklist to Open an Estate
In conjunction with my step by step guide on how to open a probate estate, here is a convenient checklist of the 8 steps involved in opening a probate estate.
In conjunction with my step by step guide on how to open a probate estate, here is a convenient checklist of the 8 steps involved in opening a probate estate.
Do it Yourself Wills
Should you write your own will? This question has already been asked in the Wills & Estate Planning Forum and aside from my own comments several others, including estate planning attorneys and non-attorneys alike, chimed in with their own feedback. The resounding answer was - NO, do not attempt to write your own estate planning documents. Here's a summary of the reasons why not.
Should you write your own will? This question has already been asked in the Wills & Estate Planning Forum and aside from my own comments several others, including estate planning attorneys and non-attorneys alike, chimed in with their own feedback. The resounding answer was - NO, do not attempt to write your own estate planning documents. Here's a summary of the reasons why not.
Individual Ownership
There are three basic ways that you can own property: in your individual name, in joint names with others, and through contract rights. Whether or not a particular asset that you own at the time of your death will need to be probated will depend entirely upon how it's titled.
There are three basic ways that you can own property: in your individual name, in joint names with others, and through contract rights. Whether or not a particular asset that you own at the time of your death will need to be probated will depend entirely upon how it's titled.
Death, IRAs and 401ks
If your loved one has died and you're the beneficiary of a retirement account such as an IRA or 401(k), then you'll need to understand the tax consequences of inheriting the retirement account. The results will be very different if you're a surviving spouse or not.
If your loved one has died and you're the beneficiary of a retirement account such as an IRA or 401(k), then you'll need to understand the tax consequences of inheriting the retirement account. The results will be very different if you're a surviving spouse or not.
Can a Spouse Be Disinherited?
With modern estate planning comes unique estate planning challenges because today's families are different - from same sex and unwed couples raising children, to estranged parents who stay married to raise their children, to married couples who live completely separate lives but nonetheless remain legally married. The latter two groups beg the question - can a spouse be disinherited?
With modern estate planning comes unique estate planning challenges because today's families are different - from same sex and unwed couples raising children, to estranged parents who stay married to raise their children, to married couples who live completely separate lives but nonetheless remain legally married. The latter two groups beg the question - can a spouse be disinherited?
Testamentary or Living
When you're putting your estate plan together, you'll need to understand the difference between testamentary trusts and living trusts.
When you're putting your estate plan together, you'll need to understand the difference between testamentary trusts and living trusts.
No State Estate Taxes
Currently 32 do not collect an estate tax at the state level. Find out if your state is one of them.
Currently 32 do not collect an estate tax at the state level. Find out if your state is one of them.
What is a Trust Amendment?
A Trust Amendment is a legal document that changes specific provisions of a Revocable Living Trust but leaves the other provisions unchanged, while an Amendment and Restatement of Trust completely replaces and supercedes all of the provisions of the original Revocable Living Trust.
A Trust Amendment is a legal document that changes specific provisions of a Revocable Living Trust but leaves the other provisions unchanged, while an Amendment and Restatement of Trust completely replaces and supercedes all of the provisions of the original Revocable Living Trust.
Considerations for IRAs
If you have any of your assets held in a qualified retirement plan, such as a 401(k) or IRA, then before updating your beneficiary designations to compliment the terms of your Revocable Living Trust, you'll need to consider the following.
If you have any of your assets held in a qualified retirement plan, such as a 401(k) or IRA, then before updating your beneficiary designations to compliment the terms of your Revocable Living Trust, you'll need to consider the following.
Debts and Probate
If your loved one has died and a probate estate will be required, then you'll need to understand how your loved one's final bills and other debts will be handled before and during the probate process. Learn who will be responsible for paying the bills and when.
If your loved one has died and a probate estate will be required, then you'll need to understand how your loved one's final bills and other debts will be handled before and during the probate process. Learn who will be responsible for paying the bills and when.
Definition of Estate Tax
Estate Tax
Estate Tax
Probate Process Checklist
In conjunction with my step by step guide on how to probate an estate, here is a convenient checklist of the 6 steps involved in settling an estate.
In conjunction with my step by step guide on how to probate an estate, here is a convenient checklist of the 6 steps involved in settling an estate.
Ancillary Probate
Owning real estate or tangible personal property in several different states will pose a unique challenge when planning your estate. This is because the laws of the state where the property is physically located will govern what will happen to the property after you die, not the laws of the state where you live at the time of your death. This, in turn, will lead to ancillary probate.
Owning real estate or tangible personal property in several different states will pose a unique challenge when planning your estate. This is because the laws of the state where the property is physically located will govern what will happen to the property after you die, not the laws of the state where you live at the time of your death. This, in turn, will lead to ancillary probate.
Making a Valid Will
When it comes to creating a Last Will and Testament, it's very important for you to observe all of the formalities required by the laws of your state in order to make the Last Will legally valid and binding on your heirs at law.
When it comes to creating a Last Will and Testament, it's very important for you to observe all of the formalities required by the laws of your state in order to make the Last Will legally valid and binding on your heirs at law.
Overview of Planning Process
Estate planning should be approached in the same manner that you would approach any other important decision in your life. Learn the steps that should be followed to establish and maintain a practical and common sense estate plan.
Estate planning should be approached in the same manner that you would approach any other important decision in your life. Learn the steps that should be followed to establish and maintain a practical and common sense estate plan.
Bills and Life Insurance
If your loved one has recently died and you're the beneficiary of a life insurance policy, learn whether or not you'll have to use the life insurance proceeds to pay your loved one's final bills.
If your loved one has recently died and you're the beneficiary of a life insurance policy, learn whether or not you'll have to use the life insurance proceeds to pay your loved one's final bills.
What Are Taxable Gifts?
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.
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.
Inheriting Tenants in Common
If your loved one has died and you and your loved one owned property as tenants in common, then you'll need to understand who will inherit the deceased owner's portion of the property.
If your loved one has died and you and your loved one owned property as tenants in common, then you'll need to understand who will inherit the deceased owner's portion of the property.
What is an ABC Trust?
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 free from federal estate taxes. 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 ABC Trust system of estate planning was created.
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 free from federal estate taxes. 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 ABC Trust system of estate planning was created.
Minor's Inheritance
If property is left directly to a minor beneficiary through joint ownership, a payable on death account, the laws of intestacy, or an improperly drafted Last Will and Testament or Revocable Living Trust, the minor won't have the legal authority to take control of the property. What will happen to the minor's inheritance depends on the laws of the state where the minor lives when the inheritance is received.
If property is left directly to a minor beneficiary through joint ownership, a payable on death account, the laws of intestacy, or an improperly drafted Last Will and Testament or Revocable Living Trust, the minor won't have the legal authority to take control of the property. What will happen to the minor's inheritance depends on the laws of the state where the minor lives when the inheritance is received.
Who Can File a Will Contest?
A lawsuit that is brought to challenge the validity of a Last Will and Testament, commonly referred to as a will contest, can only be filed by a limited number of people and entities involved in the Testator's life. In legal terms this is referred to as "standing." So who has standing to file a will contest?
A lawsuit that is brought to challenge the validity of a Last Will and Testament, commonly referred to as a will contest, can only be filed by a limited number of people and entities involved in the Testator's life. In legal terms this is referred to as "standing." So who has standing to file a will contest?
Interviewing Your Attorney
Once you've located a prospective estate planning attorney, you need to ask the attorney this list of important questions before you hire him or her as your attorney and trusted advisor.
Once you've located a prospective estate planning attorney, you need to ask the attorney this list of important questions before you hire him or her as your attorney and trusted advisor.
How to Fund an ILIT
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.
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.
Definition of AB Trusts
AB Trusts
AB Trusts
Wills & Estate Planning - QuickTips
An index of QuickTips for the Wills & Estate Planning guide site.
An index of QuickTips for the Wills & Estate Planning guide site.
Personal Representatives
A Personal Representative, also referred to as an Executor/Executrix or Administrator in some jurisdictions, is the fiduciary put in charge of settling a deceased person's estate.
A Personal Representative, also referred to as an Executor/Executrix or Administrator in some jurisdictions, is the fiduciary put in charge of settling a deceased person's estate.
Tenants by the Entirety
Definition of Tenants by the Entirety
Definition of Tenants by the Entirety
What is a Fiduciary?
A fiduciary is a person or institution given the power to act on behalf of another in situations that require great trust, honesty and loyalty. When it comes to estate planning, you'll be selecting a variety of fiduciaries to act on your behalf. Here's a list of the fiduciaries you'll need to choose for your estate plan.
A fiduciary is a person or institution given the power to act on behalf of another in situations that require great trust, honesty and loyalty. When it comes to estate planning, you'll be selecting a variety of fiduciaries to act on your behalf. Here's a list of the fiduciaries you'll need to choose for your estate plan.
Overview of Ownership
There are only three ways to own property - in your individual name, in joint names with others, or by contract rights. Here you'll find a summary of what each type of ownership means for you and your family.
There are only three ways to own property - in your individual name, in joint names with others, or by contract rights. Here you'll find a summary of what each type of ownership means for you and your family.
Connecticut Estate Tax Rules
If you live in Connecticut, then you live in one of only two states that keeps track of taxable gifts at the state level (the other is Tennessee). Connecticut residents, as well as nonresidents who own real estate and/or tangible personal property located in Connecticut, are also subject to a state estate tax in addition to the federal estate tax under the guidelines you'll find here.
If you live in Connecticut, then you live in one of only two states that keeps track of taxable gifts at the state level (the other is Tennessee). Connecticut residents, as well as nonresidents who own real estate and/or tangible personal property located in Connecticut, are also subject to a state estate tax in addition to the federal estate tax under the guidelines you'll find here.
Asset Protection Planning
Asset protection for your own assets while you're alive when compared with asset protection for your spouse and other beneficiaries after you die are two different things.
Asset protection for your own assets while you're alive when compared with asset protection for your spouse and other beneficiaries after you die are two different things.
Chart for Net Worth
The very first step in assessing your need for an estate plan is to determine your net worth. Here's a chart that will help you to organize your assets and liabilities so that you can calculate your current net worth.
The very first step in assessing your need for an estate plan is to determine your net worth. Here's a chart that will help you to organize your assets and liabilities so that you can calculate your current net worth.
Fund an Irrevocable Trust
When it comes to funding an Irrevocable Living Trust, don't be confused because the trust is "irrevocable" instead of "revocable" - Irrevocable Living Trusts are funded in exactly the same way as Revocable Living Trusts. The difference is that you have to be careful about what you fund into an Irrevocable Living Trust because you'll be giving up ownership of and control over the funded property.
When it comes to funding an Irrevocable Living Trust, don't be confused because the trust is "irrevocable" instead of "revocable" - Irrevocable Living Trusts are funded in exactly the same way as Revocable Living Trusts. The difference is that you have to be careful about what you fund into an Irrevocable Living Trust because you'll be giving up ownership of and control over the funded property.
QPRT Reduction
The main benefit of a Qualified Personal Residence Trust, or "QPRT" for short, is the removal of the value of a primary or secondary residence from your estate at a reduced gift tax value. But how does a QPRT really work?
The main benefit of a Qualified Personal Residence Trust, or "QPRT" for short, is the removal of the value of a primary or secondary residence from your estate at a reduced gift tax value. But how does a QPRT really work?
Do I Need an Attorney?
When considering if you need to hire an estate planning attorney, remember this - estate planning is serious business. One wrong word or one missing signature can change the entire intent of a will or trust. Here are three reasons why it's so important to find and hire a qualified estate planning lawyer.
When considering if you need to hire an estate planning attorney, remember this - estate planning is serious business. One wrong word or one missing signature can change the entire intent of a will or trust. Here are three reasons why it's so important to find and hire a qualified estate planning lawyer.
QPRT
A Qualified Personal Residence Trust, or "QPRT" for short, is a type of irrevocable trust that's designed to hold and own your primary or secondary residence and remove its value from your taxable estate. A QPRT works as follows.
A Qualified Personal Residence Trust, or "QPRT" for short, is a type of irrevocable trust that's designed to hold and own your primary or secondary residence and remove its value from your taxable estate. A QPRT works as follows.
Reasons for Advanced Planning
For those people with taxable estates, advanced estate planning above and beyond a foundational estate plan is one of the options for minimizing estate taxes after they die. Aside from this, advanced planning can be used to perpetuate family values and protect assets for the benefit of future generations. With these goals in mind, advanced estate planning is really done for three main reasons.
For those people with taxable estates, advanced estate planning above and beyond a foundational estate plan is one of the options for minimizing estate taxes after they die. Aside from this, advanced planning can be used to perpetuate family values and protect assets for the benefit of future generations. With these goals in mind, advanced estate planning is really done for three main reasons.
Essential Settlement Documents
After someone dies, the surviving family members will need to gather up all of the decedent's important papers. This will give the family members and/or attorney who will be assisting with settling the decedent's final affairs all of the pertinent information needed to complete the settlement process. Here's the list of documents that will be needed to settle an estate or trust.
After someone dies, the surviving family members will need to gather up all of the decedent's important papers. This will give the family members and/or attorney who will be assisting with settling the decedent's final affairs all of the pertinent information needed to complete the settlement process. Here's the list of documents that will be needed to settle an estate or trust.
Definition of Heir at Law
Heir at Law
Heir at Law
Calculating Net Worth
One of the very first steps in assessing your need for an estate plan is to determine your net worth. Here is a basic guide to calculating your net worth so that you can see where the value of your estate falls for both federal and state estate tax purposes. Once you've added everything up and subtracted everything out, don't be surprised if you're net worth is more than you had anticipated.
One of the very first steps in assessing your need for an estate plan is to determine your net worth. Here is a basic guide to calculating your net worth so that you can see where the value of your estate falls for both federal and state estate tax purposes. Once you've added everything up and subtracted everything out, don't be surprised if you're net worth is more than you had anticipated.
Paying Estate Taxes
Estate taxes are due and payable nine months after your date of death, and the IRS or state revenue department won't accept a piece of real estate, diamond ring, or stock in your business for payment. Thus, your Personal Representative or Successor Trustee will face the challenge of determining where the cash will come from to pay the taxes.
Estate taxes are due and payable nine months after your date of death, and the IRS or state revenue department won't accept a piece of real estate, diamond ring, or stock in your business for payment. Thus, your Personal Representative or Successor Trustee will face the challenge of determining where the cash will come from to pay the taxes.
What Can't Go Into a Trust?
If you've created a Revocable Living Trust to plan for mental disability and avoid probate and you think that your estate plan is done once you've signed the trust agreement, it isn't. Why not? Because after your Revocable Living Trust has been signed you'll need to "fund" it with your assets. But not all of your assets can go into your trust. Learn what can't.
If you've created a Revocable Living Trust to plan for mental disability and avoid probate and you think that your estate plan is done once you've signed the trust agreement, it isn't. Why not? Because after your Revocable Living Trust has been signed you'll need to "fund" it with your assets. But not all of your assets can go into your trust. Learn what can't.
Reasons for Estate Planning
While there are a variety of reasons why people decide to meet with an estate planning attorney, I have found the ones listed below to be the top five.
While there are a variety of reasons why people decide to meet with an estate planning attorney, I have found the ones listed below to be the top five.
Costs of Guardianship
Once a person has been determined to be mentally incapacitated and the court establishes a guardianship or conservatorship, various fees and costs will be incurred on behalf of the ward. In fact, guardianship or conservatorship is a costly business.
Once a person has been determined to be mentally incapacitated and the court establishes a guardianship or conservatorship, various fees and costs will be incurred on behalf of the ward. In fact, guardianship or conservatorship is a costly business.
Your Power of Attorney
A Power of Attorney allows you to delegate your right to manage, invest, and spend assets held in your individual name to someone else, called your "attorney in fact."
A Power of Attorney allows you to delegate your right to manage, invest, and spend assets held in your individual name to someone else, called your "attorney in fact."
FDIC, Trusts and Estates
With the recent rash of bank failures, there's been alot of confusion about the amount of insurance protection offered to bank accounts held in FDIC-insured banks. Coupled with this is the confusing rules that apply to trust and estate accounts. Learn about the current rules that will affect your accounts.
With the recent rash of bank failures, there's been alot of confusion about the amount of insurance protection offered to bank accounts held in FDIC-insured banks. Coupled with this is the confusing rules that apply to trust and estate accounts. Learn about the current rules that will affect your accounts.
Community Property
Community property is a type of joint ownership of property between married couples that is recognized in the following states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Community property is a type of joint ownership of property between married couples that is recognized in the following states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Funding Personal Items
Funding a trust with personal effects that don't have a legal certificate of title, such as jewelry, clothing, art work, antiques, and collectibles, can be accomplished by a single assignment. For personal items that have a legal certificate of title, such as cars, boats, or airplanes, you should consult with an attorney in the state where each vehicle is titled.
Funding a trust with personal effects that don't have a legal certificate of title, such as jewelry, clothing, art work, antiques, and collectibles, can be accomplished by a single assignment. For personal items that have a legal certificate of title, such as cars, boats, or airplanes, you should consult with an attorney in the state where each vehicle is titled.
Beneficiaries and Taxes
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to decide which of your beneficiaries will bear the burden of paying your estate tax bill before receiving their inheritance.
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to decide which of your beneficiaries will bear the burden of paying your estate tax bill before receiving their inheritance.
Definition of Joint Tenants
Joint Tenants With Right of Survivorship
Joint Tenants With Right of Survivorship
How to Find an Attorney
Searching for a lawyer who can help you put together a good estate plan may seem like a daunting task. But with a little help, you should be able to find several qualified lawyers to choose from. Here's a list of seven resources for locating an estate planning attorney in your state.
Searching for a lawyer who can help you put together a good estate plan may seem like a daunting task. But with a little help, you should be able to find several qualified lawyers to choose from. Here's a list of seven resources for locating an estate planning attorney in your state.
FLLC/FLLP
Family Limited Liability Company/Partnership
Family Limited Liability Company/Partnership
What is a Medical Directive?
Planning for medical emergencies should be made a part of every estate plan. The legal document necessary to plan for a medical emergency is called an Advance Medical Directive.
Planning for medical emergencies should be made a part of every estate plan. The legal document necessary to plan for a medical emergency is called an Advance Medical Directive.
Mental Disability Planning
Planning for mental disability to avoid guardianship or conservatorship should be an integral part of every estate plan and yet it's often overlooked. There are two important aspects of mental disability planning: deciding who will take care of your personal well being and deciding who will take care of your finances.
Planning for mental disability to avoid guardianship or conservatorship should be an integral part of every estate plan and yet it's often overlooked. There are two important aspects of mental disability planning: deciding who will take care of your personal well being and deciding who will take care of your finances.
Trusts for IRAs
If you have assets valued at $200,000 or more in an IRA, then you should consider setting up a type of revocable living trust that's specifically designed to be the beneficiary of your IRA, commonly referred to as an IRA Trust, IRA Living Trust, IRA Inheritor's Trust, IRA Stretch Trust, or IRA Inheritance Trust.
If you have assets valued at $200,000 or more in an IRA, then you should consider setting up a type of revocable living trust that's specifically designed to be the beneficiary of your IRA, commonly referred to as an IRA Trust, IRA Living Trust, IRA Inheritor's Trust, IRA Stretch Trust, or IRA Inheritance Trust.
CRAT
Charitable Remainder Annuity Trust
Charitable Remainder Annuity Trust
Definition of Gift Tax
Gift Tax
Gift Tax
Protect Your Assets
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?
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?
Estate Plans That Work
One glaring problem that I see time and time again in my estate planning practice is that in reality most estate plans simply don’t work. There are a multitude of reasons why estate plans fail, ranging from inadequate documents, to overlooking how assets are titled, to forgetting to update beneficiary designations, to failing to properly address family problems and dynamics.
One glaring problem that I see time and time again in my estate planning practice is that in reality most estate plans simply don’t work. There are a multitude of reasons why estate plans fail, ranging from inadequate documents, to overlooking how assets are titled, to forgetting to update beneficiary designations, to failing to properly address family problems and dynamics.
Protect Your Family
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.
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.
Title by Contract
There are three basic ways that you can own property: in your individual name, in joint names with others, and through contract rights. Title by Contract can take on various forms: payable on death ("POD") or transfer on death ("TOD") designations; in trust for ("ITF") accounts; Totten trust accounts; life insurance policies; retirement accounts and annuities; and Revocable Living Trusts.
There are three basic ways that you can own property: in your individual name, in joint names with others, and through contract rights. Title by Contract can take on various forms: payable on death ("POD") or transfer on death ("TOD") designations; in trust for ("ITF") accounts; Totten trust accounts; life insurance policies; retirement accounts and annuities; and Revocable Living Trusts.
Death of Insured
If your loved one has died and you're the beneficiary of a life insurance policy, then you'll need to understand the tax and other consequences of inheriting the insurance.
If your loved one has died and you're the beneficiary of a life insurance policy, then you'll need to understand the tax and other consequences of inheriting the insurance.
What is Guardianship?
Guardianship, or conservatorship as it's called in some states, is the legal proceeding in a state court where a person, called the “Guardian” or “Conservator,” is appointed to exercise some or all of the legal rights of the incapacitated person, called the “Ward.”
Guardianship, or conservatorship as it's called in some states, is the legal proceeding in a state court where a person, called the “Guardian” or “Conservator,” is appointed to exercise some or all of the legal rights of the incapacitated person, called the “Ward.”
Top Five Mistakes
When it comes to basic estate planning, time and time again I run into these five common mistakes. Learn what they are and how to avoid them when making or updating your estate plan.
When it comes to basic estate planning, time and time again I run into these five common mistakes. Learn what they are and how to avoid them when making or updating your estate plan.
Creditors and Living Trusts
Does transferring your assets into a Revocable Living Trust protect them against creditors, lawsuits, and divorce? The answer to this question is a resounding no - a Revocable Living Trust offers absolutely no asset protection for your property. Find out why.
Does transferring your assets into a Revocable Living Trust protect them against creditors, lawsuits, and divorce? The answer to this question is a resounding no - a Revocable Living Trust offers absolutely no asset protection for your property. Find out why.
Paying Your Tax Bill
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to understand who will be responsible for signing and filing your estate tax return and writing the check to pay the taxes that are due.
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to understand who will be responsible for signing and filing your estate tax return and writing the check to pay the taxes that are due.
Gifts to Your Spouse
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?
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 is Estate Planning?
What is estate planning? In simple terms it involves both planning for the possibility of mental incapacity and planning for certain death.
What is estate planning? In simple terms it involves both planning for the possibility of mental incapacity and planning for certain death.
Unlimited Marital Deduction
Definition of Unlimited Marital Deduction
Definition of Unlimited Marital Deduction
Needs and Uses of Insurance
Life insurance can play an important role in estate planning in two very distinct ways.
Life insurance can play an important role in estate planning in two very distinct ways.