Part two of two parts on Probate and Estate Planning (continued from August 24) In our earlier post on Probate we defined Probate for you and gave you some examples of how an estate is settled in the courts. Again, Probate is designed as a protective tool for families, but Probate does have drawbacks, not the least of which is loss of privacy. Another critical factor – often overlooked – is the fulfillment of the wishes of the deceased: it may be that he or she wanted to leave this or that … [Read more...] about Probate Alternatives You Should Seriously Consider
Living Trust Options Allow Flexibility, Protection and Probate Avoidance
Many tools are available to craft an Estate Plan that meets your needs. One of the most flexible tools in Estate Planning is the Living Trust. A Living Trust is a legal tool that ensures that your estate will take care of an heir or heirs in a very specific manner, according to your wishes. Examples include: A trust fund for a minor, with disbursements over time – a schedule that you set up A fund for a special needs or disabled person, especially one who may need special care for a long … [Read more...] about Living Trust Options Allow Flexibility, Protection and Probate Avoidance
A Look At Pay On Death Accounts
Estate planning can sound like a complicated legal matter, and in some cases rather complex legal instruments are needed to avoid asset erosion, protect assets, and enable a smooth and efficient transfer. But sometimes there are also more simple and straightforward ways to get assets into the hands of your loved ones after you pass away. An estate planning attorney can coordinate the various asset transfer vehicles that you can use to make the transfers as easy as possible while minimizing … [Read more...] about A Look At Pay On Death Accounts
Succession Planning For Small Business Partners
Small business owners face some unique challenges when they are planning their estates that others do not. Many individuals who have invested their time and efforts in a small business partnership would say that their share in the business is their most valuable financial asset. But how do you pass this considerable asset on to your loved ones after your death? Many people have no relatives that would be appropriate successors in the hands-on operation of the business, and the surviving … [Read more...] about Succession Planning For Small Business Partners
The Value Of Tax-Free Gifting
One of the most important objectives is avoiding unnecessary asset erosion. Estate planning is not as simple as arranging for assets to get from point A to point B. You want this to take place without losing anything in the process, and though it may seem as though there should be no reason why you would, there are sources of asset erosion looming. The most formidable one is the federal estate tax. At the moment the estate tax exclusion is $5 million, and the rate of the tax is 35%. (The … [Read more...] about The Value Of Tax-Free Gifting
Affordable Philanthropy With Donor Advised Funds
When you think American billionaires, two names probably come to mind: Warren Buffett and Bill Gates. Buffett, the renowned "Oracle of Omaha," seems to make his way into the news with surprising announcements. We saw one of these occasions last year when the Berkshire Hathaway chief and Microsoft CEO and founder Bill Gates stepped out and issued an unusual challenge. They asked the richest individuals in America to consider pledging to donate at least half of their fortunes to charitable … [Read more...] about Affordable Philanthropy With Donor Advised Funds
Is the Estate Tax Fair?
People who are engaged in estate planning must be concerned about the looming specter of the estate tax. The current estate tax exclusion is $5 million and the rate of the tax is 35%. So if you have more than $5 million, the portion of your estate that exceeds $5 million will be whittled down by more than a third when it comes time to pass along your legacy to your loved ones. While this might not sound like a problem to the average person, when 2013 rolls around the rate of the estate tax is … [Read more...] about Is the Estate Tax Fair?
Probate: What It Is, What it Does, and How You Can Avoid It
Part one of two parts on Probate You’ve probably heard of the term “Probate.” Probate relates to the settlement of an estate by means of a specific process in the courts. Many estates are settled in Probate, but not all of them by any means. The most common Probates involve individuals who do not have a formal Estate Plan or Living Trust in place. Probate is put into practice in every state, although the procedures can vary. The intent of Probate is to offer a legal process for reviewing … [Read more...] about Probate: What It Is, What it Does, and How You Can Avoid It
Appointing a Successor Trustee for Your Trust: Considerations
If you’ve decide to include a trust in your estate planning, you will need to carefully consider who you will choose as your successor trustee. While you’re able to serve as trustee of your trust, you need to pick a capable and reliable successor trustee to serve in the event of your incapacity or death. Take a look at the following information, for considerations that you should make when making this decision. When choosing a successor trustee, consider the following: Will he or she be able … [Read more...] about Appointing a Successor Trustee for Your Trust: Considerations
A Will Alone vs. An Estate Plan: Why, When, How?
We all know what a Will is: a person states his wishes for who gets what when he or she passes away. Having a Will is, of course, is better than not having one … but it may be nowhere near as beneficial to you as creating an Estate Plan. Here are some very basic facts about Wills vs. other legal Estate Planning tools that are available to individuals and couples who want to leave as much as possible to their loved ones: A Will becomes a public document when a person passes, and it is subject … [Read more...] about A Will Alone vs. An Estate Plan: Why, When, How?
