The process of estate planning can be complicated for high net worth individuals. You have to be vigilant if you want to protect the assets that you have been able to accumulate, because the federal estate tax can have a very significant impact on your legacy. There is a federal estate tax exclusion or credit. This is the amount that you can transfer before the estate tax would become applicable. For the rest of the 2014 calendar year, the estate tax exclusion is $5.34 million. An inflation … [Read more...] about How Can I Leave My Estate to My Spouse Tax-Free?
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Should I Create a Joint Tenancy With My Child?
Most people are aware of the fact that there are legally binding documents like wills and trusts that are used to facilitate postmortem asset transfers.These legal devices can be quite effective, but there are some asset transfers that would take place organically, even if there were no estate planning documents in place. Joint Tenancy One way that assets can be transferred without the existence of estate planning documents would be through joint tenancy. A joint tenant is a co-owner of … [Read more...] about Should I Create a Joint Tenancy With My Child?
Making Health Care Directives in California
An Advance Health Care Directive is a legal device commonly used in incapacity planning that allows you to name a person to make medical decisions for you in case you should become disabled. You may have also heard this legal document referred to as a Medical Power of Attorney or a Durable Power of Attorney for Health Care. The person that you name to make medical decisions for you may be called your agent or advocate. Along with your medical decisions, the Directive also lets your health care … [Read more...] about Making Health Care Directives in California
Making Sure Your Living Trust Performs As Intended
When setting up a trust, preparing the documents does not finish the process. If the person who sets up the trust fails to properly transfer their assets into it, it can become an underfunded or unfunded. This lack of proper funding can lead to a failure of a person’s estate plan, and also increases the potential for disputes throughout the process of probating the estate. What is an Unfunded Trust? A trust is a legal document that involves a trustor, a trustee, and a beneficiary. The trustor … [Read more...] about Making Sure Your Living Trust Performs As Intended
Does a Living Trust Protect My Assets?
Living trusts can be very useful for a wide range of people. When you create this type of trust, you are called the grantor of the trust. There is a trustee who administers the trust, and a beneficiary who can receive monetary distributions from the trust. While you are alive and well, you can act as the trustee and the beneficiary. You control the actions of the trust, and you can take monetary distributions if you choose to do so. Most trusts that are referred to as Living Trusts are … [Read more...] about Does a Living Trust Protect My Assets?
How to Protect IRAs Left to Your Beneficiairies
A recent U.S. Supreme Court decision, Clark v. Rameker, will have big implications for clients. In the Clark case, the Supreme Court held that, while a person’s own IRA can be protected in the case of bankruptcy, the court has determined that an inherited IRA cannot, at least when it is inherited by someone other than a spouse. While that is big news for those who have already inherited an IRA, it is a call to action for those planning to leave one behind. Being aware of the consequences of … [Read more...] about How to Protect IRAs Left to Your Beneficiairies
Free Report: What is a Qualified Personal Residence Trust in California
Asset transfers to people other than your spouse are potentially subject to the estate tax if you are transferring more than $5.34 million to your heirs. Learn more about qualified personal residence trust in California in this presentation. Topics covered in this report include: QPRT Summary References Click here to read the whole article or download the PDF. … [Read more...] about Free Report: What is a Qualified Personal Residence Trust in California
Did You Keep Your 2014 Resolutions?
Did you resolve at the beginning of this year to complete or update your estate plan? Did you do so? If yes, congratulations! If not, there is still time. There is still about two weeks left to make sure 2014 is not like all of the prior years, when those resolutions seemed so achievable, yet somehow left unfulfilled. Who can help all of you to create or update your Estate Plan? Of course, we can. As an estate planning firm, we help hundreds of clients each year with their planning needs. … [Read more...] about Did You Keep Your 2014 Resolutions?
What Happens To A Living Trust When One Spouse Dies?
One reason for a living trust for a married couple is the opportunity to pass on their estates to their children in the most tax-efficient manner. When the first spouse dies, the surviving spouse is allowed to make use of all available tax benefits. This can be the difference between leaving your children the wealth you have accumulated and leaving them with barely enough to pay for funeral expenses. Can’t I just leave everything to my spouse? Typically, when one spouse dies, they leave … [Read more...] about What Happens To A Living Trust When One Spouse Dies?
What Is the Uniform Probate Code?
Estate matters are handled by the probate court. This court is charged with the responsibility of supervising the administration of an estate when certain circumstances exist. Probate laws vary state-by-state, and back in the 1960s, the powers that be decided that there should be a code that could be followed in all 50 states. Sometimes the probate process can be complicated. The American Bar Association partnered with the National Conference of Commissioners on Uniform State Laws (NCCUSL) to … [Read more...] about What Is the Uniform Probate Code?
