Common goals of many folks is to build up their estate assets so that they can live comfortably during the Golden Years and – hopefully — have a nest egg left to pass down to their children, grandchildren, and/or other loved ones. These goals could be threatened, however, if the hard earned assets are put at risk – and they could be at risk without you even realizing it. The best way to protect your assets, your future, and your loved ones is to include asset protection planning as a component … [Read more...] about Asset Protection Planning: Should You Be Worried?
Advanced Estate Planning
Understanding the Annual Gift Exclusion
One part of overall estate planning is considering how to minimize taxes as much as possible. This includes not only estate taxes but also gift taxes. When you transfer ownership of property, even as a gift, the IRS will impose a tax. There are some exceptions or exclusions to the gift tax that is typically imposed. Here is what you need to know. First, what is considered a gift? According to our federal government, a gift is “any transfer to an individual, either directly or indirectly, … [Read more...] about Understanding the Annual Gift Exclusion
Why Irrevocable Trusts Protect Assets
Especially if you own a business or commercial property, asset protection can be a big concern for you. The possibility of legal claims and constant existence of creditors make it even more important to have an asset protection plan so that you don't run the risk of losing everything through some unexpected turn of events. There are different ways to legally protect your assets, including irrevocable trusts. Not every type of trust can accomplish proper asset protection. Here is why … [Read more...] about Why Irrevocable Trusts Protect Assets
Develop a Relationship with Your Estate Planning Attorney
Do you know the value of obtaining the advice of an estate planning attorney? Estate planning attorneys are there to guide you through the myriad of choices available in planning for the future. An experienced estate planning attorney can help you to fully understand how to make your wishes and goals for your family become a reality. If you have an estate planning attorney, you should develop a relationship with them because they probably have more to offer than you know. What is an estate … [Read more...] about Develop a Relationship with Your Estate Planning Attorney
Trusts Can Satisfy Many Different Objectives
The importance of trusts in estate planning is seen in their ability to minimize estate taxes and hopefully avoid probate. A trust is basically a fiduciary agreement, one based on trust and confidence, between the person making the trust (grantor) and the trustee. This agreement gives the trustee the authority to manage the assets of the trust and distribute those assets to the beneficiaries as specified in the trust agreement. There are several different types of trusts with their own … [Read more...] about Trusts Can Satisfy Many Different Objectives
What Is a Buy-Sell Agreement?
The process of estate planning can be a bit confusing for small business owners, especially if there are partners in the business. How would things play out after the passing of one partner? This type of situation is often addressed through the creation of a legal device called a buy-sell agreement. Let’s look at the details. Buy-Sell Agreements We will explain by way of example. For the purposes of our example, you are one of three partners in a small business. The business is quite … [Read more...] about What Is a Buy-Sell Agreement?
Estate Tax Strategy for Appreciable Assets
There are things that you can do to potentially transfer assets at a tax discount if your estate is going to be exposed to the federal estate tax. This tax is applicable on transfers that exceed the amount of the federal estate tax exclusion. For the rest of this year, the exclusion is $5.43 million, but it is going up to $5.45 million next year after an inflation adjustment is applied. If you are married, you can use the unlimited marital deduction to transfer unlimited assets to your spouse … [Read more...] about Estate Tax Strategy for Appreciable Assets
Estate Tax Strategy for Appreciable Assets
There are things that you can do to potentially transfer assets at a tax discount if your estate is going to be exposed to the federal estate tax. This tax is applicable on transfers that exceed the amount of the federal estate tax exclusion. For the rest of 2015, the exclusion is $5.43 million, but it is going up to $5.45 million in 2016 after an inflation adjustment is applied. If you are married, you can use the unlimited marital deduction to transfer unlimited assets to your spouse … [Read more...] about Estate Tax Strategy for Appreciable Assets
Tips When Inheriting IRAs
We regularly get inquiries from our clients who are recipients of an inheritance. An ever increasing asset that is being inherited is a retirement account such as an IRA. Special considerations must be attended to when inheriting an IRA because of their special characteristics. In this blog, we'll discuss some of these considerations. Don’t automatically request to cash in the IRA. The income tax repercussions could be great and there are better options. If you opt for a lump sum … [Read more...] about Tips When Inheriting IRAs
Don’t Disinherit a Child With Special Needs
There are various different circumstances that can exist within a family. For example, there may be a child that you love who has special needs. The desire to provide for the child within your estate plan may be there, but you may be concerned about eligibility for Medi-Cal coverage. Before we proceed, let's provide some background information about Medi-Cal for those who may not know the facts. The Medicaid program is in place to provide a health care insurance safety net for people of all … [Read more...] about Don’t Disinherit a Child With Special Needs
