When it comes time to distribute your assets to your family after you die, you’ve probably already thought about the big issues if you have created an estate plan. However, you’ll also want to consider the little things, especially items of personal property that may hold family or sentimental value. Family conflicts can arise over disputes about who will inherit personal property. Because personal property isn’t always specified in detail in a person’s last will and testament, it can be useful … [Read more...] about Preventing Family Discord With a Personal Property Distribution Letter
Estate Planning
3 Questions About the Generation-Skipping Transfer Tax
Question 1: What is the generation skipping transfer tax? The generation-skipping transfer tax is a federally imposed tax that typically applies when a grandparent gives a large amount of property to a grandchild. Commonly abbreviated as GST, the tax applies to either a gift made while the grandparent is still alive or through his or her estate. However, the grandparent’s child—the grandchild’s parent—must also be alive at the time of the gift for the tax to apply. Question 2: When is this tax … [Read more...] about 3 Questions About the Generation-Skipping Transfer Tax
Estate Planning for the Pregnant Woman
Whether you are new to estate planning or have already created a plan, the general rule of thumb in estate planning is that you should at least update your plan whenever a major life event occurs. One of these events is when you learn you become pregnant. Both the pregnant woman and her partner should review any estate plans they have made as soon as learning of the pregnancy. Here are two reasons why. Reason 1: You need to consider the unthinkable. Though no one likes to think about it, … [Read more...] about Estate Planning for the Pregnant Woman
When Should I Update My Estate Plan?
They say that one thing leads to another, and this is certainly true when you are engaged in the process of estate planning. Indeed, the word “process” is something to absorb because being optimally prepared at all times is an ongoing endeavor. With this in mind, let’s take a look at the top three reasons to update your estate plan. Marriage, Divorce & Remarriage An update to your estate plan is going to be a natural accompaniment to any change in marital status. In fact, you may … [Read more...] about When Should I Update My Estate Plan?
Death and Debts – 3 Questions
Question 1: Who is responsible for paying the deceased relatives debts? In general, only a person who agreed to take on the debt is responsible for paying it back. For example, if your father dies and leaves behind $10,000 in credit card debts, you are not responsible for paying those back. The only situation in which you might have to pay them back is if you were a joint account holder on those same credit cards. In this situation you are obligated to pay the debts. Also, if you are the … [Read more...] about Death and Debts – 3 Questions
Practical Steps Checklist for your Financial Power of Attorney
Step 1: Review it. Before ever trying to use your power of attorney you should always have an experienced and qualified estate planning lawyer review it. This is especially important if such a lawyer lawyer didn't make it for you. No third party will honor a financial power of attorney if it doesn't comply with state laws because they risk being held responsible if they do. Many boilerplate powers of attorney found in stores, on CDs or on the Internet are incomplete and defective and may not … [Read more...] about Practical Steps Checklist for your Financial Power of Attorney
How Parents Can Choose a Guardian
Whenever parents contemplate their child's future, it's natural to think about how the child would fare if you should die. This is never a pleasant thought, but there is some way to help alleviate the worry. By creating an estate plan in which you choose a guardian to take over caring for your child if you should die, you can rest assured that your child will be cared for by someone of whom you approve. There are two types of guardianships that need consideration. Guardians of the estate are … [Read more...] about How Parents Can Choose a Guardian
Funeral Trusts Can Be a Useful and Flexible Planning Tool
Are you looking for a way to ensure that your wishes will be honored with regard to your funeral, making sure your family is not burdened with paying for your funeral, and sheltering money for Medi-Cal planning purposes? Consider creating a funeral trust which can accomplish all three goals, if drafted properly. A funeral trust is a specialized trust that is aimed at paying your final expenses. As with any trust, you must name a beneficiary. In this case, the funeral home that handles your … [Read more...] about Funeral Trusts Can Be a Useful and Flexible Planning Tool
