Estate Planning

If you are going through life without an estate plan, you are doing your loved ones a disservice. It can always seem like you will have time to put a plan in place when you are a senior citizen, but if you think pragmatically, you know that younger people pass away every day. You probably have insurance to protect yourself from events that are probably not going to happen. On the other hand, everyone is going to pass away someday, so you should certainly prepare for this eventuality as …

You have choices to make when you are devising your estate plan. If you have always thought that a last will would be the right transfer vehicle given your situation, you may be surprised when you hear about the benefits that living trusts provide. If you use a last will, you would be allowing for lump sum distributions to the inheritors after your passing. This may not be the ideal scenario, but you don't have to settle for it. With a living trust, you can instruct the trustee to distribute …

There are estate tax efficiency strategies that can be implemented if your estate is subject to taxation. The ideal tool, or set of tools, will depend upon the unique set of circumstances and the nature of the assets that you are transferring. A grantor retained annuity trust or GRAT can be part of your wealth preservation plan if you are in possession of appreciable assets. Before we explain the details, we should take a look at the estate tax parameters so that you can determine whether or …

You may wonder about the tax implications that could enter the picture when assets are being transferred after you pass away. Perhaps surprisingly, an inheritance is not considered to be taxable income. You would not have to claim an inheritance when you file your annual tax returns. However, there  is the matter of appreciated assets and the capital gains tax. This tax can be applicable when a gain is realized. You realize a gain when you sell an appreciated asset and pocket the …

Some people are not too concerned about estate planning, because they harbor misconceptions, and a Pollyanna viewpoint can also enter the equation. The idea is that the government has a plan if you do not execute a will or trust, and your family members will certainly work things out among themselves in a fair and equitable manner. This is a nice way of looking at things, but in the real world, things usually don't automatically fall into place in accordance with your wishes if you do not …

People have varying emotions, and over the years, the exact nature of the relationships that you have with the people that you love will have their high points and their low points. Estate planning is looked upon by many people as an exercise in document creation. On your own, with no one looking, you state your final wishes regarding the way that you want your assets to be distributed after you are gone. You will not be around to see how others react to these decisions. This can give you a …

When you put off estate planning for a number of years, and you finally decide to roll up your sleeves and get started, you may have no idea where to begin. Everyone has heard of a last will, but is that the right choice, and do you need anything else? Many people have these questions. Let's look at some steps that you may want to consider when you start to devise your estate plan. Create an Inheritance List You should create an inheritance list so that you know exactly who you want to …