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
When you’re deciding to whom to leave assets, most people choose their children or other descendants. However, you also need to decide on the “contingent remainder” beneficiary. In other words, who should get your assets if all your other beneficiaries are gone. Read on to learn more about this often-confusing concept. … [Read more...] about What’s an “Atom Bomb” or “Contingent Remainder” Beneficiary?
The vast majority of American adults are going through life without any estate planning documents at all. Curiously enough, a study that was conducted recently found that most of the people that are unprepared understand why it is important. Nonetheless, they roll the dice hoping that they will have the time to do it later on. Unfortunately, far too many people never get around to it, and the family members have to pay the price. Pandemic Wake-Up Call Last year around this time, could you … [Read more...] about COVID Resurgence Serves as Stark Reminder