We have been writing about estate planning topics for a long time on this blog, but our in-depth exploration of the field can leave newcomers wanting. In an effort to provide people new to the field a foundational understanding of estate planning, over the coming days we are going to look at some basic issues. If you are new to estate planning, or just want to give yourself a better grasp of the topic, you will want to follow along with our series. To begin, let's take a look at what, exactly, … [Read more...] about Basic Estate Planning Questions: What is Estate Planning?

People often look for so-called "simple solutions." They hear about some type of shortcut that sounds good on the surface, and they buy into the notion hook, line, and sinker. In many cases, the results are not good. With the above in mind, let's look at TOD or POD accounts. Adding a Beneficiary When you open an account at a bank, you may be offered the option of adding a beneficiary. Many brokerages also offer this option. These accounts are called transfer on death (TOD) or payable on … [Read more...] about What Is a TOD or POD Account?

People often say that we live in a litigious society. Lawsuits are common, and people who like to sue others tend to seek out targets with deep pockets. As a result, certain people are particularly vulnerable to lawsuits. Landlords who own rental property sometimes fall into this category. Tenants and visitors could potentially become injured on rented property, and legal actions can be initiated. Asset protection is very important for people who own investment property. Physicians are also … [Read more...] about What Is a Family Limited Partnership?

People sometimes look for shortcuts that seem attractive on the surface, and this enters into the realm of estate planning. Joint tenancy is one of the shortcuts that you should understand thoroughly. You may want to take pause before you buy into the notion that it is an ideal estate planning solution. Let's look at the facts. Co-Ownership of Property Joint tenancy sounds kind of complicated, but in reality, it is simply co-ownership of property. Let's say that you want your grandson … [Read more...] about What Is Joint Tenancy?

Probate is a legal process that comes into play if you use a last will to facilitate asset transfers after you pass away. When you create a last will, you name an executor. This is the person who will handle the estate administration tasks. An executor is sometimes referred to as a personal representative.  Traditionally, female executors have been referred to as executrixes.  In California, the person who administers a probate proceeding where there is no will is referred to as an … [Read more...] about What Is an Executor?

Many people who have not explored all the facts assume that they should use a last will to state their final wishes. You can go this route if you want to, but there are some drawbacks that go along with the utilization of a last will. A will must be probated before the heirs to the estate can receive their inheritances. This process provides certain protections, but there are a number of pitfalls that go along with it. One of the drawbacks is the fact that disgruntled parties could contest … [Read more...] about Can a Living Trust Be Contested?

There are taxes on asset transfers in the United States. We have a federal estate tax, and it carries a top rate of 40 percent. Everyone does not pay the federal estate tax, because there is a reasonably large credit or exclusion. At the present time, the exact amount of the federal estate tax exclusion is $5.34 million. This figure is in place for the rest of 2014. Next year there may be a modest increase to account for inflation. In addition to the federal estate tax, there is also a federal … [Read more...] about Should I Use My Unified Exclusion to Give Gifts?

There are taxes on large asset transfers in the United States. We have a federal estate tax, but most people do not have to pay it, because there is a relatively large credit or exclusion. For the rest of the 2014 calendar year, the exact amount of the federal estate tax exclusion is $5.34 million. There are annual adjustments to account for inflation, so the figure may be higher next year. In addition to the estate tax, there is also a federal gift tax. This tax is unified with the estate … [Read more...] about What Is the Annual Gift Tax Exclusion?

There are taxes that can come into play when money is changing hands. There is a federal estate tax that is applicable in all 50 states. Most people never pay the tax, because there is a relatively high credit or exclusion. For the rest of 2014, the exact amount of the federal estate tax exclusion is $5.34 million. Each year there are adjustments to account for inflation, so the figure may rise a bit in 2015. You can transfer up to $5.34 million tax-free. If the value of your estate exceeds … [Read more...] about Do I Pay Taxes When Someone Leaves Me Money?