If one of your loved ones has a substance abuse problem, an inheritance may make the addiction worse or even kill him or her. At the least, the inheritance is likely to be squandered. For anyone who has an addiction such as drugs or alcohol, it is best to pass the inheritance in trust, not outright. How Outright Inheritances Work Outright gifts pass into your beneficiary’s individual name. They are within your beneficiary’s full control, to be spent any way he deems appropriate. This may … [Read more...] about The Addicted Beneficiary: A Problem and a Solution
Advanced Estate Planning
For many families, an estate plan based upon a revocable living trust may be all that is needed to protect their assets from death taxes. However, for folks with larger estates, it may make sense to look for ways to transfer assets in a tax-free manner. Though there is a gift tax in place there are ways to facilitate tax-free giving if you take the appropriate actions. One such strategy involves zeroing out a grantor retained annuity trust, often abbreviated as a GRAT. How does it work? After … [Read more...] about GRAT-itude for Advanced Tax-Saving Planning Option
Effective, January 1, 2012, California law now has authorized the formation of two new types of corporate entities: Benefit Corporations and Flexible Purpose Corporations. Traditional corporations, which are owned by their shareholders, will generally operate for the maximum benefit of those shareholders. Officers and directors whose actions arguably vary from that goal may find themselves in hot water with the shareholders for whom they work. For those who wanted to create an entity that … [Read more...] about Doing Well By Doing Good: New California Laws Expand the Realm of Corporate Entities
Creating a comprehensive estate plan is one of the most important things you will do during your lifetime. When done properly, your estate plan will ensure that your loved ones are well provided for in the event of your untimely death as well as distribute your assets pursuant to your wishes. If not executed properly, it can wreak havoc with your finances and fail to provide the protection for your loved ones that it was intended to do. Given the importance of your estate plan, the first step in … [Read more...] about Choosing an Estate Planning Attorney
The federal estate tax exemption is set to return to $1 million dollars on January 1, 2013 unless Congress passes new tax legislation. This means that you have about eight months to use your approximately $5 million dollar exemption (during life or at your death.) If you’re married, you and your spouse can jointly transfer about $10 million dollars worth of assets. Wealthy families across the country, who are getting good advice, are making transfers to the next generation now. Will you lose … [Read more...] about Need to Transfer Wealth to Avoid the Federal Estate Tax? Do It Now!
If you thought that estate planning was only for the middle aged or elderly, think again. Estate planning can often be most effective when started young -- before you actually have a fortune to distribute. Case in point -- Mark Zuckerburg and Doug Moskovitz, the founders of social media giant Facebook. According to recent news reports, the two have used estate planning strategies that will effectively allow them to shift over $185 million dollars to trust beneficiaries without having to pay gift … [Read more...] about Facebook Billionaires Shift Millions Tax Free