It is possible to contest a last will, and most people are aware of the fact that a will can be challenged. In fact, the system is set up in a way that makes it relatively simple to challenge the validity of a will. When you utilize a last will to express your final wishes the will must be admitted to probate. The probate court is charged with the responsibility of determining the validity of the will. As a result, a ready-made forum exists for anyone who wants to come forward presenting a will …
Things a Last Will Can and Can’t Accomplish
Some people think about estate planning and say, "Oh, that's when you draw up your last will." In fact, a properly crafted estate plan could include other legal devices. First let's look at some things that a will can accomplish. Asset Transfers You can indeed arrange for the future transfer of your financial assets to your heirs through the execution of a last will. You name an executor or executrix to administer the estate, and he or she conducts the business of the estate after your …
Trusts and Wealth Preservation
Accumulating wealth is a primary objective of many people who strive for success. However, once you have achieved your goals, wealth preservation will be a priority as well. Why would you have to preserve wealth? Doesn't money naturally grow if you invest it appropriately? This is a far-reaching question, but in this post we will take a narrow focus. From an estate planning perspective, wealth preservation is going to be necessary because of the existence of death taxes. Federal Estate …
Three FAQs About Estate Planning
People have a lot of questions about estate planning, and we understand that. As a response we have assembled a library of free reports that you can access through our website. We pass along a steady stream of information on this blog, and we also offer free estate planning seminars. We encourage you to attend one of our seminars, and please feel free to download any of our free reports that you may be interested in. In this post we would like to answer three frequently asked questions …
Estate Planning Insurance FAQs
Life insurance is obviously a part of many estate plans. We would like to take a look at some frequently asked questions about taxes and probate as they apply to life insurance proceeds. I have been named as the beneficiary of a life insurance policy. Will I be required to report this as income when I ultimately receive the proceeds? The answer to this question is no. If you are the beneficiary of a life insurance policy the proceeds are not considered to be taxable income. Must I wait …
QDT Provides for a Foreign Spouse
There are many acronyms that are used in estate planning to represent certain legal devices. One of these is the QDT, which stands for a qualified domestic trust. To understand why a QDT may be useful you should know a bit about the federal estate tax. After the enactment of the American Taxpayer Relief Act of 2012 parameters were put into place that are said to be permanent in that they have no particular expiration date. This does not mean that subsequent legislation could not change things, …
Dying Without a Trust or Last Will: What’s the Outcome?
There are those who question why they would need a trust or a last will. They are under the impression that the state of New York will take care of things and the result will be perfectly in line with their wishes. There are significant flaws to this line of thinking. If you die without a last will the Surrogate's Court will be forced to take control of the situation. The estate will be responsible for paying final debts. Ultimately, the assets that comprise the estate will be distributed to …
Can Probate Be Avoided?
Most people who do not look into the subject very deeply assume that estate planning involves the execution of a last will. If you use a last will to state your final wishes with regard to the transfer of your property it is not immediately distributed to the heirs. The estate must go through the probate process before the heirs receive their inheritances. Probate takes place under the auspices of the Surrogate's Court here in the state of New York. The estate is going to go through the full …
Does Your Living Trust Reflect Your Current Wishes?
The revocable living trust is an effective estate planning tool that you may want to consider as an alternative to a last will as an asset transfer vehicle. One reason why people who understand the facts often opt for living trusts is because they enable probate avoidance. Probate is the legal process of estate administration. Creditors and claimants have an opportunity to step forward to seek satisfaction during probate. Anyone who wanted to challenge the will could present a case before the …
DIY Wills & Living Trusts: Understand the Dangers
Wills and revocable living trusts are two of the most commonly utilized estate planning vehicles of asset transfer. The best choice for a given individual will vary on a case-by-case basis. There are in fact other ways to transfer assets, and some of these may be preferable depending on the circumstances. There are those who don't seek out any professional advice. They stumble upon websites on the Internet that sell do-it-yourself legal documents including wills and living trusts. These DIY …
Low Rates Make GRATs Attractive
The Section 7520 rate is low at the present time, and this makes the zeroed out GRAT strategy attractive to many people seeking avenues that provide tax efficiency. In the realm of estate planning a GRAT is a grantor retained annuity trust. You as the grantor name a beneficiary, and you receive annuity payments from the trust throughout its term. The IRS adds anticipated interest earnings to the trust's value using the Section 7520 rate. As this is being written (July of 2013) the Section …
Avoiding Probate With a Revocable Living Trust
Revocable living trusts are widely used to enable probate avoidance. Let's start off by explaining what probate is and why someone may want to arrange for asset transfers outside of probate. In the state of New York the process of probate takes place under the supervision of the Surrogate's Court. Contrary to the way it is depicted in the movies, a will is not something that is just read among family members. It must be deemed valid by the court. Everyone has heard of will challenges, and …
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