It is much more fun to accumulate and develop our assets than to talk about giving them up. When you transfer your personal circumstances into a well drafted estate plan, you are creating a legacy for the benefit of your family. Thank about some of the following questions when creating or updating your estate plan:
Life insurance can certainly be looked at from an investment perspective. All one needs to do is to compare premiums paid to benefits received, incorporating the time value of money into the equation. Indeed, often times it makes a lot of sense to compare what life insurance can do versus simply investing the premiums elsewhere;
Once your Revocable Living Trust is created, title to many of your assets should be transferred to it. You should transfer your bank accounts, certificates of deposit, investments, among others into the Revocable Living Trust. When this process is complete, you, as an individual no longer own the transferred property, your Revocable Living Trust will
The Benefits of Gifting The obvious manner to minimize estate taxation is simply to reduce the size of your estate. It is also permissible by the Internal Revenue Service for couples to “split” gifts to a third party; this is accomplished by having the spouse “join” in the gift. Also, remember each person has a
Intentionally Defective Grantor Trusts–What is It and Why Do I Want One? How about transferring an asset to a trust so it will be removed from your estate and therefore not a taxable estate asset, but retaining enough “strings” to the asset so that any income taxation will be paid by yourself and this income
Joint Ownership: When is it Appropriate?? Many people own real estate or bank accounts with another person, often a spouse, adult child, other relative, or trusted friend. Some individuals “add the name” of another person to their bank account for convenience, such as having bills paid and refunds received. Others use joint tenancy as a
Estate planning is not only about dying; it is a lifelong process. The impact of estate planning extends beyond the span of an individual life it impacts the surviving spouse as well as future generations. Estate planning is a very personal matter, that is why you must feel comfortable with your planner; proper planning represents
Many estate plans provide for the creations of trusts after death for the benefit of a surviving spouse, children or charity. This article discusses some of the issues that arise when funding these “testamentary trusts,” whether created under a will or a revocable trust. Funding a testamentary trust requires the transfer of assets into a
FEDERAL ESTATE TAXATION: The present Estate Tax Exemption Amount is increased to $5,430,000; this exemption amount may be reduced by certain lifetime gifts. The calculation of the taxable assets includes life insurance unless same has been transferred to a trust. The Federal Estate tax rate is also forty per cent (40%). The present law permits the surviving
Yes, you have said, “This year, I will make sure that my family is provided for, just in case.” You know that an estate left without a Will creates a financial and legal burden for your family that prevents them from receiving the legacy you meant to leave them. But then you get busy at