Probate is the legal process that comes into play when you pass away in possession of personal property. Even if you have a last will the probate court will be involved. The executor of the estate must admit the will to probate. Your property is considered to be probate property at first. After the probate process has run its course the property is distributed to the heirs to the estate. Probate is not an inherently negative thing, but there are certain drawbacks that go along with the …
Will You Consult With an Estate Planning Lawyer in 2014?
If you are like a lot of people you have a to-do list. Passing away is certainly something that will be permanently etched at the bottom of the list. However, this does not mean that estate planning should be next-to-last. Estate planning is something that many people put on the back burner, and surveys indicate that most Americans have not executed all of the necessary estate planning documents. A significant majority of people who are under the age of 50 have not planned ahead for something …
What Is the Nomination of a Guardian?
The nomination of a guardian should enter the picture when you are planning your estate as a parent of a young child. Who would take care of your children if you and the other parent were to pass away together in an accident? What if you are a single parent? Who would become the caregiver if you were to pass away? You answer these questions when you nominate a guardian. This is something that is typically done when you create your last will. The court is not absolutely compelled to appoint the …
Can I Give Tax-Free Gifts to My Children?
You may be surprised to hear that gifts to your children, or to just about anyone else for that matter, are potentially taxable. The reason why you do not hear from the Internal Revenue Service when you give your children birthday gifts is because there are credits or exclusions. Annual Gift Tax Exclusion We have an annual gift tax exclusion that allows you to give most gifts free of the gift tax. The amount of this exclusion in 2014 is $14,000. As a taxpayer you can give as much as $14,000 …
Living Trust vs. Medicaid Trust: What’s the Difference?
One of the most commonly utilized vehicles of asset transfer is the revocable living trust. These trusts are very popular because they facilitate the transfer of assets outside of probate. When you use a last will to direct the transfer of your assets the will must be admitted to probate. Probate is the legal process of estate administration. The heirs to the estate don't receive their inheritances until the estate has been probated and closed. We should emphasize the fact that probate is not …
DIY Last Wills: Don’t Be Fooled
The Internet provides us with a lot of great information, and it has certainly transformed the way that we live our lives both personally and professionally. You can indeed find out how to do many things on your own by doing some research online. But at the same time, it is important to make sure that you do not allow a little bit of information to become a dangerous thing. This enters into the equation when it comes to estate planning. Websites exist that sell you downloads and worksheets …
What Happens to a Living Trust When One Spouse Dies?
When you understand all of the facts you may decide that you would prefer a living trust to a last will. A revocable living trust will facilitate an efficient transfer of assets to your heirs outside of probate. Probate is a legal process that provides certain protections, but it can be time-consuming and costly. The public can access probate records to find out what went on during the process, and this loss of privacy is another concern for many people. The utilization of a living trust …
Large Inheritances Tend to Evaporate
The federal estate tax is considered by many to be an instance of double taxation. The critics contend that the assets that comprise your estate are accumulated after you pay taxes on your income or investment earnings. These assets are not taxable while you are alive by virtue of their very existence. But somehow the event of your death is viewed as a taxable one. And, a taxable one at a rather high maximum rate of 40%. A recent article in the Wall Street Journal talks about the pattern …
Are You Choosing a Trustee?
The anatomy of a trust involves the selection of a beneficiary or beneficiaries and a trustee. As the name implies, the beneficiary benefits from the resources that have been conveyed into the trust. The trustee is empowered to manage and administer the funds that have been placed into the trust. There are various different types of trusts, but we would like to look at the revocable living trust here. With these trusts you as the grantor may serve as both the trustee and the beneficiary while …
Will Forgery Is a Crime
During the probate process interested parties have the opportunity to challenge the validity of the will that has been presented. Sometimes an individual is simply disgruntled. A family member or some other interested party may feel as though he or she was not treated fairly. It is possible that an objective observer would agree with this perspective. At the same time, you can leave your assets to anyone you choose and leave out anyone you choose. The only way a will could be deemed invalid is …
Broader Estate Plan Addresses the Eventualities of Aging
People sometimes have the proverbial moment of clarity, and they realize that they should take action and put an estate plan in place. Estate planning is absolutely essential for all responsible adults, but you should also take the eventualities of aging into consideration when you are looking ahead toward the future. One of the eventualities of aging is the possible need for living assistance. If you are reasonably confident that you will live to the age of 65 as most of us are you should …
What Steps Can I Take to Preserve My Legacy?
Estate planning can be very straightforward and simple, or it can be multifaceted and complex. How you would like to proceed is a personal choice. With this in mind, let's look at legacy planning and how you can preserve your legacy. Your legacy is the influence that is felt even after you are gone. Clearly, being in a position to leave behind a financial underpinning to your loved ones can be part of the plan. If you have been very successful financially throughout your life, you may be …
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