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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
Michael Jackson's Court Docket
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.
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.
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.
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.
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.
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.
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.
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.
Exemption From Gift Taxes
Definition of Exemption from Gift Taxes
Definition of Exemption from Gift Taxes
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.
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.
Benefits of Trust 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.
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.
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.
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.
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.
Overview of Taxes
When preparing or updating your estate plan, you'll need to have a basic understanding of the four types of taxes that can affect your estate: gift taxes, estate taxes and inheritance taxes, generation skipping taxes, and income taxes.
When preparing or updating your estate plan, you'll need to have a basic understanding of the four types of taxes that can affect your estate: gift taxes, estate taxes and inheritance taxes, generation skipping taxes, and income taxes.
Tenants in Common
Definition of Tenants in Common
Definition of Tenants in Common
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.
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?
Definition of Pour Over Will
Pour Over Will
Pour Over Will
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.
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.
Duties of a Successor Trustee
In setting up your Revocable Living Trust, you'll be asked to name a Successor or Administrative 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 or Administrative Trustee to administer your trust after you die. Learn what a Successor Trustee is required to do when settling your trust after you die.
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.
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.
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.
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.
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.
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.
Annual Exclusion Gift
Definition of Annual Exclusion Gift
Definition of Annual Exclusion Gift
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.
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.
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.
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.
Exemption From Estate Taxes
Definition of Exemption From Estate Taxes
Definition of Exemption From Estate Taxes
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.
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.
Definition of Joint Tenants
Joint Tenants With Right of Survivorship
Joint Tenants With Right of Survivorship
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.
State Estate Tax Gap
Currently 17 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 17 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.
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.
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.
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.
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.
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.
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.
Mistakes in Existing Plans
List of common mistakes continued...
List of common mistakes continued...
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
Definition of Per Stirpes
Per Stirpes
Per Stirpes
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.
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.
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.
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.
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.
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?
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.
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.
Definition of Heir at Law
Heir at Law
Heir at Law
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.
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.
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.
What is Asset Protection?
With the economy slowing down and money becoming tight, asset protection planning has become a hot topic in recent months. This type of planning, however, can't be started when a judgment creditor is already on the horizon since there are laws that protect a judgment creditor against people who transfer their assets with the intent to hinder, delay or defraud a creditor.
With the economy slowing down and money becoming tight, asset protection planning has become a hot topic in recent months. This type of planning, however, can't be started when a judgment creditor is already on the horizon since there are laws that protect a judgment creditor against people who transfer their assets with the intent to hinder, delay or defraud a creditor.
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.
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.
Responsibilities of a Guardian
After a person has been determined to be totally mentally incapacitated and becomes a "ward" of the court, or if a minor is in need of a guardianship or conservatorship, the guardian or conservator appointed by the court will have numerous duties and responsibilities with regard to taking care of all of the ward's needs.
After a person has been determined to be totally mentally incapacitated and becomes a "ward" of the court, or if a minor is in need of a guardianship or conservatorship, the guardian or conservator appointed by the court will have numerous duties and responsibilities with regard to taking care of all of the ward's needs.
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.
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.
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.
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.
IRA Beneficiaries - Married
In my experience, once you've signed your foundational estate planning documents, choosing the right beneficiaries for your IRAs and 401(k)s is just as important as getting the appropriate legal documents in place. If you're married, here are some things to consider.
In my experience, once you've signed your foundational estate planning documents, choosing the right beneficiaries for your IRAs and 401(k)s is just as important as getting the appropriate legal documents in place. If you're married, here are some things to consider.
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.
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.
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.
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.
Changing Your Trust
One of the benefits of a Revocable Living Trust is that it gives you the flexibility to make changes to the terms of it at any time. But how do you make changes to your trust that will be legally valid? Find out.
One of the benefits of a Revocable Living Trust is that it gives you the flexibility to make changes to the terms of it at any time. But how do you make changes to your trust that will be legally valid? Find out.
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.
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.
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.
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.
Tenants by the Entirety
Definition of Tenants by the Entirety
Definition of Tenants by the Entirety
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.
Which States Allow ABC Trusts?
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.
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.
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.
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.
Protecting Beneficiaries
Asset protection for your own assets while you're alive as compared with asset protection for your beneficiaries after you die are two different things.
Asset protection for your own assets while you're alive as compared with asset protection for your beneficiaries after you die are two different things.
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.
Who Gets the Trust?
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 or a Revocable Living Trust be read to anyone. Instead, the trust attorney has to determine who should be sent a copy of the trust agreement.
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 or a Revocable Living Trust be read to anyone. Instead, the trust attorney has to determine who should be sent a copy of the trust agreement.
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.
Estate Planning and Finances
"How do I know if I need an estate plan?" Aside from taking a look at your family matters, you'll also need to review your finances in order to assess your need for an estate plan.
"How do I know if I need an estate plan?" Aside from taking a look at your family matters, you'll also need to review your finances in order to assess your need for an estate plan.
Benefits of IRA Trusts
If you have assets valued at $200,000 or more in an IRA, then you should consider setting up a special type of revocable living trust that's designed to be the beneficiary of your IRA. Here's why.
If you have assets valued at $200,000 or more in an IRA, then you should consider setting up a special type of revocable living trust that's designed to be the beneficiary of your IRA. Here's why.
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.
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.
What is a Codicil?
A Codicil is a legal document that changes specific provisions of a Last Will and Testament but leaves the other provisions unchanged. As long as you are mentally competent, you can change, modify, update, or completely revoke your Last Will and Testament at any time. But the question becomes, when should you make a Codicil and when should you write an entire new Last Will?
A Codicil is a legal document that changes specific provisions of a Last Will and Testament but leaves the other provisions unchanged. As long as you are mentally competent, you can change, modify, update, or completely revoke your Last Will and Testament at any time. But the question becomes, when should you make a Codicil and when should you write an entire new Last Will?
Death of a Tenant in Common
When one of the owners of property titled as tenants in common dies, the surviving owners will not be personally liable to pay off the deceased owner's final bills. But the surviving owners may be forced to sell certain property that's owned as tenants in common. Find out why.
When one of the owners of property titled as tenants in common dies, the surviving owners will not be personally liable to pay off the deceased owner's final bills. But the surviving owners may be forced to sell certain property that's owned as tenants in common. Find out why.
Ancillary Probate
Owning real estate 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 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.
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.
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.
Assignment of Property
In order to save you from making a list of all of the tangible personal property that you own, a blanket Assignment of Tangible Personal Property or Quitclaim Bill of Sale can be prepared in order to fund these assets into your Revocable Living Trust.
In order to save you from making a list of all of the tangible personal property that you own, a blanket Assignment of Tangible Personal Property or Quitclaim Bill of Sale can be prepared in order to fund these assets into your Revocable Living Trust.
Planning for Your Family
One of the most frequent questions that I’m asked as an estate planning attorney is, "How do I know if I need to make an estate plan?” The first place to start is to take a look at your family situation. If it fits into one or more of the personal “red flag” categories, then, regardless of your net worth, you need an estate plan.
One of the most frequent questions that I’m asked as an estate planning attorney is, "How do I know if I need to make an estate plan?” The first place to start is to take a look at your family situation. If it fits into one or more of the personal “red flag” categories, then, regardless of your net worth, you need an estate plan.
Definition of Inheritance Tax
Definition of Inheritance Tax
Definition of Inheritance Tax
Definition of AB Trusts
AB Trusts
AB Trusts
Trust Avoids Guardianship
Another common and simple way to avoid a court supervised guardianship or conservatorship if you become mentally incapacitated is to establish and fund a Revocable Living Trust.
Another common and simple way to avoid a court supervised guardianship or conservatorship if you become mentally incapacitated is to establish and fund a Revocable Living Trust.
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.
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.”
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.
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.
Updating Life Policies
Once you have your Revocable Living Trust in place, you'll need to update the beneficiaries of your life insurance policies. Here's how.
Once you have your Revocable Living Trust in place, you'll need to update the beneficiaries of your life insurance policies. Here's how.
What is an Estate Lawyer?
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.
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.
Checklist of Twelve Mistakes
Each time that I sit down with a new client who already has an estate plan, the first thing that I do is a thorough review of their current estate planning documents. From years of experience in doing these reviews, I've developed a list of common problems that I see time and time again and here it is - the checklist of the twelve things that I look for when reviewing an existing estate plan.
Each time that I sit down with a new client who already has an estate plan, the first thing that I do is a thorough review of their current estate planning documents. From years of experience in doing these reviews, I've developed a list of common problems that I see time and time again and here it is - the checklist of the twelve things that I look for when reviewing an existing estate plan.
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.
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 Serve as a Fiduciary?
While setting up your estate plan, you'll be asked to name a variety of fiduciaries to act on your behalf in certain situations. Here you will learn who can and can't serve as your fiduciaries and why.
While setting up your estate plan, you'll be asked to name a variety of fiduciaries to act on your behalf in certain situations. Here you will learn who can and can't serve as your fiduciaries and why.
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.
CRAT
Charitable Remainder Annuity Trust
Charitable Remainder Annuity Trust
GST Trust
Definition of Generation Skipping Trust
Definition of Generation Skipping Trust
FLLC/FLLP
Family Limited Liability Company/Partnership
Family Limited Liability Company/Partnership
Definition of Gift Tax
Gift Tax
Gift Tax
Avoiding Guardianship
There are a variety of ways to avoid having you and your assets placed in a court-supervised guardianship or conservatorship if you become mentally incapacitated. Some will work in certain situations but not in others.
There are a variety of ways to avoid having you and your assets placed in a court-supervised guardianship or conservatorship if you become mentally incapacitated. Some will work in certain situations but not in others.
CT Dept. of Revenue Website
Here you will find links to all of the resources on the Connecticut Department of Revenue Services website that pertain to the Connecticut estate tax.
Here you will find links to all of the resources on the Connecticut Department of Revenue Services website that pertain to the Connecticut estate tax.
What is Advanced Planning?
There is a common misconception that you must be wealthy to need advanced estate planning. This is true is some cases but not in others. While basic estate planning involves creating a plan for what happens if you become disabled and a plan for what happens after you die, advanced estate planning goes beyond these basics in several ways.
There is a common misconception that you must be wealthy to need advanced estate planning. This is true is some cases but not in others. While basic estate planning involves creating a plan for what happens if you become disabled and a plan for what happens after you die, advanced estate planning goes beyond these basics in several ways.
Planning for Health Care
An Advance Medical Directive allows you to specify who will make health care decisions for you if you can't make these decisions for yourself. A Living Will allows you to write down your wishes with regard to what medical procedures you want to receive if you're suffering from a terminal illness and aren't expected to recover.
An Advance Medical Directive allows you to specify who will make health care decisions for you if you can't make these decisions for yourself. A Living Will allows you to write down your wishes with regard to what medical procedures you want to receive if you're suffering from a terminal illness and aren't expected to recover.
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."
Changing Your Will
As long as you're mentally competent, you can change, modify, update, or completely revoke your Last Will and Testament at any time. But how do you make changes to your Last Will that will be legally valid? Find out.
As long as you're mentally competent, you can change, modify, update, or completely revoke your Last Will and Testament at any time. But how do you make changes to your Last Will that will be legally valid? Find out.
Memorandum of Trust
When asked to fund assets into a Revocable Living Trust, often times financial institutions will request a copy of the trust agreement for their files. Many Trustmakers, however, don't like the fact that these institutions will have an entire copy of their trust agreement on record. In order to keep certain provisions of a Revocable Living Trust private...
When asked to fund assets into a Revocable Living Trust, often times financial institutions will request a copy of the trust agreement for their files. Many Trustmakers, however, don't like the fact that these institutions will have an entire copy of their trust agreement on record. In order to keep certain provisions of a Revocable Living Trust private...