The probate process is a piece to the puzzle that you should understand when you are contemplating your legacy. This process can come into play when an estate is being administered, but every asset transfer is not subject to the probate process. If you die while you are in direct, sole personal possession of property, it would become probate property. This would be true if you had a last will to direct its distribution, and it would also be true if you had no estate planning documents at …
Isn’t a Living Trust Just a Glorified Last Will?
Sometimes people adopt a particular perspective without knowing all the facts. This can enter the realm of estate planning when it comes to living trusts. You could assume that a living trust does the exact same thing as a last will. Why should you create a trust when a simple will can do the trick? In reality, this is a shortsighted viewpoint, because there are a number of different reasons why a trust could be a better choice. Let's look at some of them. Efficient Asset …
Estate Planning: The Consequences of Inaction
There are far too many people who fail to understand the importance of estate planning. If you go through life without making any plans for something that will definitely happen, negative consequences can result, and your family members will pay the price. Let's look at some of the negative consequences that can come about due to estate planning inaction. Inappropriate Asset Distributions If you do not have an estate plan in place, the state would use intestate succession laws to distribute …
Tax-Free Giving Provides Estate Tax Efficiency
People who are exposed to death taxes must implement estate tax efficiency strategies. This tax does not apply on asset transfers between spouses who are American citizens, but it is potentially applicable on asset transfers to others. There is a federal estate tax exclusion that defines the amount that can be transferred before the estate tax would be applied. During the current calendar year, the federal estate tax exclusion is $5.43 million, but there are annual adjustments to account for …
Avoid These Four Estate Planning Mistakes
Estate planning is a serious responsibility for every adult, but unfortunately, a significant percentage of people have not executed all the appropriate estate planning documents. Plus, those that do often make mistakes that yield unintended consequences. In this blog post, we will look at five estate planning mistakes that you should definitely avoid. Taking Matters Into Your Own Hands There are websites on the Internet that sell boilerplate estate planning documents like last wills. …
Should I Use a Revocable or Irrevocable Trust?
When you hear about the fact that there are revocable trusts and irrevocable trusts, you may wonder why you would use one and not the other. On the surface, a revocable trust sounds better in a general sense, because you would have the ability to dissolve the trust and take back the assets if you ever change your mind. This ongoing control can be a good thing under certain circumstances. When you have a revocable living trust, you can rescind it entirely, but while it is intact you can act as …
Remarriage, Your Children, and Your Estate Plan
The estate planning process can get complicated under some circumstances. For example, if you are a parent who is getting remarried, you have to consider the well-being of your children as you enter the marriage. If you do not take steps to make sure that your children receive inheritances, you never know what could happen if you predecease your spouse. Your spouse and your children may not get along well, and your spouse could potentially remarry after your passing, and your children could pay …
What Information Do I Need to Create My Estate Plan?
There are many different things to take into consideration when you are creating your estate plan. We will provide an overview in this blog post so that you can put together a checklist of sorts. Inventorying Assets You need to understand exactly what you have to pass along to your loved ones. This can seem self-evident when you are creating an inheritance list, but there is another reason why you need to know exactly where you stand when you are devising your estate plan. Estate taxes can …
What Is a Self Proving Will?
There is a misconception that many people harbor when it comes to last wills. You may think that the executor that you name can distribute assets to the heirs right after you pass away, without any supervision. In fact, this is not the case. A will must be admitted to probate, and in New York, the Surrogate's Court supervises the administration of the estate. During this process, there is a proving of the will. The court examines the document to make sure that the will is in fact valid. The …
What Is an Ethical Will?
You may look at estate planning as a purely financial endeavor. Obviously, you have to prepare your resources for future distribution to your loved ones when you plan your estate, but you can view the process in a more comprehensive manner. Legacy planning is a more holistic form of estate planning that takes matters of the heart into account. When you are crafting your legacy plan, you could consider the inclusion of a document called an ethical will or legacy letter. Some people are …
What Are the Top Three Estate Planning Priorities?
Many people think that estate taxes are the top concern that people have when they are devising estate plans. In fact, clients typically talk about other things when they are explaining their priorities. In this blog post, we will look at three of the top estate planning priorities that we hear about from our clients. Control of Assets When you plan your estate, you position your assets with postmortem distributions in mind. In some cases, this will involve the creation of a trust of some …
How Can You Minimize Your Estate Tax Exposure?
Death taxes can be a factor for you if you are in a particularly strong financial position. There is a federal estate tax that everyone around the country must contend with, and there are some states that also impose state-level estate taxes. We practice law in the state of New York, and there is a state-level estate tax in our state. There is an unlimited marital deduction that allows you to transfer unlimited assets to your spouse free of taxation, as long as your spouse is an American …
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