The federal estate tax can have a significant impact on your legacy, because it carries a 40 percent top rate. Fortunately, you can transfer a certain amount tax free before the estate tax will become applicable. This figure is called the estate tax exclusion. It is increased every year to account for inflation, and since the new year is upon us, the 2021 figure has been released. Before we share it, we will take a look at the path we have taken to get to this point. The Road to the Historic … [Read more...] about Federal Estate Tax Exclusion Will Rise in 2021
The world is an unusual place. Things you’d never expect to happen sometimes actually do happen. There are natural disasters and unusual phenomenon. It’s important to prepare, not just for the unexpected but the eventual, as well. Read on to learn more. … [Read more...] about Preparing for the Unexpected…and the Eventual
When you come into money for any reason, you expect the taxman to be expecting a share, so you would naturally apply this dynamic to inheritance transfers. Generally speaking, inheritances are not subject to regular income taxes because an estate is accumulated after taxes have been paid. However, there is a shade of grey when it comes to distributions of assets that are held by living trust, and we will explain the details in this post after we provide a general overview. Living Trust … [Read more...] about Do Beneficiaries Pay Taxes on Living Trust Distributions?
Do you need a will if you have a living trust? We will provide the answer in this post, but we will explain some of the benefits that living trusts provide before we address that question. Streamlined Estate Administration When you have a living trust, you facilitate a straightforward and efficient administration process. You would act as the trustee while you are living, so you would have total access to the assets in the trust. In the trust declaration, you would name a successor trustee … [Read more...] about Is a Will Needed If You Have a Living Trust?
The November elections are over. What was the outcome of the election? What changes could come about as a result? What do those possible changes mean for your estate plan? Read on to learn more. … [Read more...] about What the 2020 Election Could Mean for Your Estate Plan
Statistics show that most Americans do not have estate plans in place, but the majority of people that are polled also say that they think estate planning is important. They simply put it on the back burner for various different reasons. Since procrastination is widespread, when they do take action, they put the documents away for safekeeping and they close the book on the subject. In reality, this is a misguided perception. Estate planning is not a one-time event unless you put your … [Read more...] about Schedule an Estate Plan Review in 2021
Thanksgiving is a time for giving thanks and for appreciating your family and friends. In particular, it can be a good time to thank those people whom you’ve asked to serve in important roles in your estate plan. Thank your agents under your powers of attorney and your successor trustees. Read on to learn more. … [Read more...] about A Time for Thanks and Community
When you are contemplating your legacy, you should ask yourself how you can do the most good for your family members. If you have young people on your inheritance list, access to a college education would certainly be a meaningful gift. Plus, when a youngster knows that they have a clear pathway to a bright future, they will invariably motivated to do well during the preparatory years. All of the above may sound great, but what’s the best way to develop the resources that you need to … [Read more...] about What Is a 529 College Savings Plan?
When you’re deciding how your assets should be divided at death, sometimes dividing them equally is the appropriate choice. But, sometimes it’s not. Fair isn’t always equal or vice versa. Read on to learn more, including how to avoid a challenge if you choose an unequal division among your children. … [Read more...] about Fair Isn’t Always Equal and Vice Versa
People often make estate planning mistakes that yield negative consequences after they are gone. It is frustrating when you hear about these situations, because the errors could have been easily avoided. With this in mind, let’s look at some of the wrong turns that you should avoid. DIY Estate Planning There are websites that produce boilerplate, fill in the blanks legal documents including last wills and trusts. They make it sound like it is easy for anyone to plan their own estate using the … [Read more...] about These Errors Can Tarnish Your Legacy