When someone passes on, his or her assets are typically left behind to a beneficiary. If you find yourself the recipient of money, you may have a big question on your mind: will I have to pay taxes? Before we go any further, remember this: it is a good idea to speak with a qualified estate planning attorney to ensure that you are paying all necessary taxes. Whether or not you are required to pay inheritance tax depends on how much money you are receiving, the state in which you live, and … [Read more...] about Taxes and Inheritances: Planning and Coping
Getting the news that you have inherited money or property from a family member is usually a good thing. For some people, it may be more of a concern. If you receive income-based government benefits, you may be concerned that your benefits will be in jeopardy if you receive a significant inheritance. For instance, if you receive Medi-Cal or Supplemental Security Income (SSI), you assets must not exceed a certain amount in order for you to remain eligible. If that's the case, you need to … [Read more...] about Protecting Your Inheritance with Inheritance Planning
You just found out that you will inherit from a loved one's estate. While this might be exciting news, it may also cause some concern. Most people know that estate taxes are typically imposed. Whether or not an heir has to pay any inheritance tax depends entirely on your state. Since state laws are constantly changing, it would be wise to consult with your estate planning attorney if you are receiving an inheritance. Here are the answers to five common inheritance tax questions. No. 1 – … [Read more...] about Answers to Five Inheritance Tax Questions
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
One of the more important issues you’ll have to face as you create an estate plan is what you want to do about the inheritances you leave to others. In deciding on inheritances, you might come across some obscure terminology. For example, the terms “per capita” and “per stirpes” may not sound familiar to you, but you need to understand them if you want to understand inheritances. Testate and Intestate Inheritances When you consider inheritances, you have to look at the difference between testate … [Read more...] about Inheritances, Per Capita, and Per Stirpes
There are several myths and misconceptions surrounding estate planning that sometimes pop up. For example, some people believe that the state of California will inherit your property if you don't make a will or create some kind of estate plan. While this is possible, it is very rare. The process through which the state inherits someone's property is called escheat. Let's take a look at it and why it rarely happens. You can choose who inherits your property. In order to pass on your property … [Read more...] about The Government Will Not Inherit Your Property – 3 Facts About Escheat
A recent survey shows that more and more parents are choosing to either spend their wealth on themselves or give it to charity instead of providing their children with an inheritance. A large trust company recently conducted a survey in which it interviewed people with a net worth of at least $3 million or more, not including the value of their homes. The survey showed that 32% of parents who qualified as high or ultra-high net worth individuals said it isn't important to leave an inheritance … [Read more...] about More Parents Choosing to Skip Giving Inheritances
When most people think about estate planning, they think about ways that they can leave assets to their heirs. They do not think about the opposite: planning to receive an inheritance. What you do after receiving an inheritance is just as important as planning what to do with your own estate. You should consider whether you are better off with or without the inheritance. Receiving assets can have a drastic impact on your financial situation. It can put you in a higher tax bracket in some cases, … [Read more...] about Are You Better Off Without an Inheritance?