Income tax basis is important in estate planning. This article by my friend and colleague Steve Hartnett, an estate planning expert,examines what happens to an asset’s basis when it is gifted. It then examines what happens to the basis of an asset when someone dies with the asset and then bequeaths it to someone. Many people find it surprising that these are treated differently. Income tax basis is an important factor in considering estate planning strategies. Income Tax Basis in Estate … [Read more...]
Make Your Own Plan
Planning is important. If you don’t plan, your assets go pursuant to the state’s default plan, which may be very different from what you want. As discussed in this post by my friend and colleague Steve Hartnett, an estate planning expert, if you plan, you can be sure your assets go exactly to whom you want and in a manner that can benefit them the most. Make Your Own Plan … [Read more...]
Does a “Love Child” Inherit from a Parent’s Estate?
Families tend to be complicated, which often means that estate planning is both complicated and necessary. Without an estate plan in place, state intestate succession laws determine what happens to a decedent’s estate assets. As a general rule, this means that a spouse and/or children inherit from the estate. While that sounds simple enough, even that simple concept can be complicated. For example, what happens if there is an illegitimate child? To help answer that question, we will explore how … [Read more...]
What Happens If We Can’t Agree on Who Should Administer My Mother’s Estate?
The death of a parent, no matter how old you are, is never easy to accept. If you are an adult child who recently lost your mother, you are undoubtedly still going through the grieving process. At the same time, you may be feeling pressure to get moving with the administration of your mother’s estate. The situation will only be worse if you have a situation where the family cannot agree on who should oversee the administration of the estate. If you find yourself in that situation, it is … [Read more...]
Choosing the Right Trustee Matters More than You Realize
Like many people, you may decide to incorporate a trust into your comprehensive estate plan. If so, one of the most important steps in creating your trust will be to select a Trustee to administer the trust. In fact, you may not realize just how important choosing the right Trustee is to the success of your trust. To help ensure that you make the right choice, we will explain why your choice of Trustee matters more than you realize. What Is a Trust? A trust is a separate legal entity that owns … [Read more...]
Estate Planning? How do I Start?
We understand if engaging in the estate planning process seems like a big deal. There are forms to fill out, difficult issues to think about, documents to review, legal fees to be paid, and you have to work with an attorney which may be something you have not previously had to do. None of these things rank highly on anyone’s “My Top 10 Ways to Spend an Afternoon.” But, let us put your mind at ease. Once you enter the estate planning process, you’ll feel a much better. You’ll be able to … [Read more...]
Can Someone Object to Me Becoming My Father’s Conservator?
For an adult child, there are few things more difficult than realizing that a father can no longer safely care for himself and/or his affairs. If you have arrived at that realization then the next step is to petition to become your father’s conservator. What happens though if someone doesn’t agree with your decision to pursue conservatorship? Let's see what happens if someone objects to you becoming your father’s conservator. What Is a Conservatorship? In California, if a court determines that … [Read more...]
Planning for Special Needs Children
Planning is important when providing for any of your children. But planning is even more important for special needs children. Without proper planning, an inheritance can jeopardize a special needs child’s needs-based benefits, such as SSI or Medicaid. Read on to learn more about planning for special needs children. This post by my friend and colleague Steve Hartnett, an estate planning expert, discusses this important planning. Planning for Special Needs Children … [Read more...]
Ins and Outs of Inheriting an IRA
What are the tax implications of an inheriting an IRA? The answer depends on several factors: Is it a traditional IRA or a Roth IRA? The funds in a traditional IRA have never been taxed and will be taxed as they are withdrawn. Roth IRAs contain post-tax dollars and are not again taxed upon their withdrawal. Is the beneficiary of the IRA a spouse, a non-spouse person, or a charity? When the beneficiary of an IRA is the spouse of the IRA owner, the spouse will have a number of … [Read more...]
Where Do It Yourself = Do It Wrong
An estate plan is an important part of one’s plan for the future. Many realize that they need the assistance of an experienced and qualified attorney to assist them in their efforts. Unfortunately, some folks will cut corners in their estate planning efforts in an effort to save a few bucks or because they think they are as smart as or smarter than their estate planning lawyer when it comes to drafting documents or both. Even with persons who were prudent enough to have their original plans … [Read more...]
