Trusts are commonly used in the field of estate planning, and there are various types of trusts. Some trusts are revocable, and there are also irrevocable trusts. In this post we will look at the value of irrevocable trusts. Direct Ownership When you create an irrevocable trust, you are surrendering incidents of ownership. Because you cannot revoke the trust, you are permanently conveying the assets into the trust. You are no longer the direct owner of the resources. The trust owns the … [Read more...] about What Is an Irrevocable Trust?

Estate planning involves the execution of legally binding documents. There are websites on the Internet that sell generic template legal documents, including estate planning devices. They contend that you can plan your estate simply and easily using downloads or worksheets that they sell to their visitors. Is do-it-yourself estate planning truly effective? This is a question that was asked by the highly respected magazine Consumer Reports in 2012. Conflicting Clauses Three legal professors … [Read more...] about Can I Plan My Own Estate Using Template Documents?

You should understand your financial position relative to the federal estate tax exclusion when you are planning your estate. This tax can have a serious impact on your family's future, because it carries a very significant rate. The top rate of the federal estate tax is 40 percent at the present time. Fortunately, most people are exempt from the federal estate tax, because there is a relatively high credit or exclusion. Your estate would be subject to the estate tax if its value  exceeds the … [Read more...] about When Is an Estate Tax Return Due?

Estate planning involves the execution of legally binding documents. There is really no one document that is inherently more important than every other. We have all heard people refer to the "right tool for the right job." This enters into the field of estate planning. A document that is very important for one person may not be relevant to the next. This is why personalized attention is the key to a well constructed estate plan. When you discuss your unique situation with a licensed attorney, … [Read more...] about What Is the Most Important Estate Planning Document?

Estate planning involves using an asset transfer vehicle (or vehicles). You could use a last will to facilitate future asset transfers, but you have other options. There are various different trusts that are used in the field of estate planning, and one of them is the revocable living trust. Revocable living trusts are popular because they allow for efficient asset management. While you are living, you do not lose control of assets that you convey into this type of trust, but you are … [Read more...] about Why Would I Need a Pour-Over Will?

When you decide to get serious about planning your estate, you should understand all of the facts. Many people assume that they should use a last will to transfer assets because they are not especially wealthy. They have heard that trusts are only used by very affluent people. In fact, there are different types of trusts that are used for different purposes. There are trusts that are used by high net worth individuals to gain estate tax savings and asset protection. However, revocable living … [Read more...] about What Is a Revocable Living Trust Successor Trustee?

Estate planning is a multifaceted endeavor, and wealth preservation is part of the equation. There are taxes on asset transfers in the United States that you must contend with if you have accumulated a significant store of wealth. One of them is the generation-skipping transfer tax. Before the implementation of the generation-skipping transfer tax, people would create trusts for the benefit of their grandchildren in an effort to avoid the estate tax. The generation-skipping transfer tax was … [Read more...] about What Is the Generation-Skipping Transfer Tax?