The revocable living trust is a very useful estate planning tool. These trusts are widely utilized by people who do not consider themselves to be wealthy. Revocable living trusts allow for efficient control of assets while you are living. This type of trust will also facilitate timely asset transfers after you pass away. The individual who is establishing the trust is called the grantor of the trust. At first, the grantor of the trust would typically serve as the trustee and the beneficiary. … [Read more...] about Does a Revocable Living Trust Reduce Income Tax Responsibility?

Because a lot of people tend to put the matter of estate planning on the back burner, they oftentimes fail to do the appropriate research. As a result, assumptions are made, and they can yield less than ideal consequences. Most people have heard of the existence of trusts, and everyone has heard of the estate planning device called a last will. There is a popular misconception about these estate planning tools. Many people assume that last wills facilitate fast and efficient asset transfers. … [Read more...] about Why Would I Want to Avoid Probate?

Estate planning should be viewed as an ongoing process. When you create your first estate plan, you are dealing with a certain set of circumstances. There are the conditions of your own life, and there are also societal circumstances that impact everyone. Over the years, things change. You may have additions and subtractions to the family, and your financial position could change. Changes in marital status can also enter the picture. These evolving circumstances could call for estate plan … [Read more...] about Are Estate Tax Laws Subject to Change?

Trusts can be very useful for a wide variety of people. Some trusts are used by high net worth individuals who are exposed to the federal estate tax. These would be irrevocable trusts. This type of trust could also be used by people who want to protect assets, and an irrevocable trust could help if you are spending down assets to qualify for Medicaid. Many senior citizens seek eligibility for Medicaid because Medicare does not pay for long-term care. Revocable Living Trusts Revocable living … [Read more...] about Should I Use a Corporate Trustee?

People often procrastinate when it comes to estate planning. Studies show that most Americans are not fully prepared, and as you may imagine, younger people are particularly remiss. If you are a younger adult, you may feel as though you will always have time to plan your estate at a later date. This is understandable to some extent, but estate planning is essential for adults of all ages. You never know what the future holds, and you should be prepared every step of the way. Childless adults … [Read more...] about Is Estate Planning Strictly for Senior Citizens?

People have questions about how taxation affects estate planning, and rightfully so. There are multiple different taxes that can come into play, including the capital gains tax. In this post we will look at these taxes and provide some explanations. Federal Estate Tax When you think about taxes on assets that you are transferring to your loved ones, the estate tax will invariably come to mind. Fortunately, most people are not exposed to the estate tax, because there is a relatively high credit … [Read more...] about What Is the Capital Gains Tax?

The last will or last will and testament is the most commonly used vehicle of asset transfer in the field of estate planning. Years ago, the testament portion was used to distribute personal property, and the will was utilized to distribute real property. However, at the present time, a will is typically used to transfer both types of property. If you use a last will to state your wishes regarding the distribution of your assets, you name an executor or personal representative. This is the … [Read more...] about Can an Executor Distribute Property Immediately?

When you think about estate planning, the document called a last will or last will and testament might come to mind. You can use a last will to state your final wishes regarding the transfer of your monetary assets. If you are the parent of a minor child, you can also nominate a guardian in your last will. A last will can be a suitable choice for some people, but you do have other options with regard to asset transfer vehicles. If you use a last will, the will must be admitted to probate after … [Read more...] about Is There More Than One Type of Will?