When you plan your estate, you make decisions about the inheritances that you will be leaving to your loved ones. At the same time, you have some control over the size of the pie that will be sliced up after your passing. There are some looming threats that can impact your legacy, and we will take a look at some of them in this post. Elder Financial Abuse It is a very sad phenomenon to say the least, but unfortunately, elder financial abuse is widespread. This subject started to draw … [Read more...] about Address These Sources of Inheritance Erosion
People often come away a bit confused when they hear bits and pieces about the taxes that can be applied on inheritances. The term “estate tax” is commonly utilized, and you may have also heard of an “inheritance tax.” Some people think that estate tax is a term that is used to describe the income taxes that you have to pay if you receive an inheritance. In fact, inheritances are not subject to regular income taxes. An estate tax is entirely different. Federal Estate Tax We do have a … [Read more...] about Estate Tax & Inheritance Tax: Is There a Difference?
There is an election looming over the horizon, and the outcome could have a significant impact on the federal estate tax parameters. High net worth individuals may be negatively impacted by a shift in the political mindset. Let’s look at the details. Federal Estate Tax Exclusion The majority of taxpayers do not have to worry about paying the federal estate tax, because you can transfer a certain amount before the tax would be levied. This threshold is called the estate tax credit or exclusion. … [Read more...] about Will Election Trigger Estate Tax Changes?
We always emphasize the importance of estate planning for all responsible adults. This being stated, before a landmark Supreme Court ruling was handed down in 2013, it was absolutely essential for committed LGBT couples. Prior to that time, same-sex marriages were recognized in some states, including New York. However, they were not recognized on the federal level because of a provision that was contained within the Defense of Marriage Act (DOMA). It defined marriage as a union that can only … [Read more...] about Edith Windsor Changed LGBT Estate Planning
If you have been very successful from a financial standpoint, you have to be concerned about the potential impact of estate taxes. Many people contend that the death tax is not fair, because your estate is comprised of resources that you have been able to retain after paying innumerable taxes throughout your life. Why should your death be a taxable event in and of itself? This a good question, but whether it is fair or not, the federal estate tax is a fact of life. The good news is that … [Read more...] about Estate Taxes Can Erode Your Legacy
The type of trust that is most commonly used is the revocable living trust. Many people are comforted by the idea that it is possible to change your mind and dissolve the trust at some point in the future. Plus, if you create this type of trust, you have control even while you are alive and well. As the grantor of the trust, you could serve as the trustee and the beneficiary at first. In the trust declaration, you would name successors to assume these roles after you are gone. You can change … [Read more...] about When Would You Use an Irrevocable Trust?
Overall, the tax laws that apply to inheritance distributions are favorable to American families. You are not required to report an inheritance as taxable income, and this would include life insurance proceeds. Plus, if you inherit assets that appreciated during the life of the decedent, you do not have to pay capital gains taxes on the appreciation. On the other side of the coin, if you have been very successful from a financial standpoint, you have to be concerned about a significant level of … [Read more...] about Estate Tax Exclusion Adjusted for Inflation
In this post, we are going to examine the unlimited estate tax marital deduction. However, before we get into this specific area, we should provide a broad overview of the federal estate tax itself. The federal estate tax is imposed on wealth that is being transferred that exceeds a particular amount. This threshold is called the estate tax exclusion. The amount of the exclusion has varied significantly over the years, so the current numbers we are going to share are subject to change. In … [Read more...] about Is a Bequest to Your Spouse Taxable?
Another New Year is quickly approaching, and many people make resolutions when the next chapter begins. This is a great tradition, and although a lot of folks do not keep their resolutions, there are those that follow through on them. In addition to personal improvements, individuals often use the new year as a landmark reminding them that they have certain incremental responsibilities to address. You should definitely apply this this principle to your existing estate plan. Far too many … [Read more...] about Resolve to Update Your Estate Plan in 2020
On this blog, we typically provide basic, broad-based information about estate planning topics, because most people are not very well informed at all. In this piece, we are going to come from a different approach in an effort to provide some tips about some more savvy concerns that lie just beneath the surface. Don’t Underestimate Estate Administration Far too many people are completely unprepared from an estate planning perspective. Time flies, and this is not something that many people … [Read more...] about Top Five Insider Estate Planning Tips