There are numerous different legal devices that can be used when you are planning your estate. Many people are surprised to hear that there are actually multiple different types of wills. In this post, we will share some information about these documents.Simple WillA simple last will is the most commonly utilized estate planning tool. If you have a limited amount of property to pass along, and you don’t mind giving lump sum inheritances, this can be a suitable choice. In this type of will, … [Read more...] about Are There Different Types of Wills?
Estate Planning
Gift Tax 101
We are going to provide an explanation of the gift tax in this post, but before you can understand the purpose of this tax, you have to digest some information about the federal estate tax.This tax can significantly erode the wealth that you would like to pass along to your loved ones, because it carries a 40 percent top rate. Fortunately, most people don’t have to pay the tax because there is a credit or exclusion that you can use to transfer a certain amount tax-free.During the current … [Read more...] about Gift Tax 101
The Basics: “HIPAA” Powers
This is the second in a three-part series of articles on Powers of Attorney. The first article examined the Financial Power of Attorney. This second article examines the Healthcare Power of Attorney and Advance Directive.Read on to learn more … [Read more...] about The Basics: “HIPAA” Powers
Removing Life Insurance Without Triggering the Transfer for Value Rule
Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the taxable estate. But there are two potential traps in this. The prior article examined the first trap, the three-year lookback of Section 2035. This article will examine how the Transfer for Value rule can make life insurance taxable. Read on to learn more about how to avoid the income taxation of life insurance.Read on to learn more … [Read more...] about Removing Life Insurance Without Triggering the Transfer for Value Rule
Removing Life Insurance from the Taxable Estate
Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the estate. But, there are two potential traps in this.Read on to learn more … [Read more...] about Removing Life Insurance from the Taxable Estate
The Basics: Financial Power of Attorney
Powers of Attorney are part of even the simplest estate plan. A Power of Attorney allows your Agent to act for you. There are Powers of Attorney for financial matters and also those for health care.Read on to learn more … [Read more...] about The Basics: Financial Power of Attorney
The Basics: Powers of Attorney for Healthcare
Powers of Attorney are part of even the simplest estate plan. A Power of Attorney allows your Agent to act for you. There are Powers of Attorney for financial matters and also those for health care. This article concerns the Healthcare Powers of Attorney and Advance Directives.Read on to learn more … [Read more...] about The Basics: Powers of Attorney for Healthcare
A Heggstad Petition Can Provide a Solution
Before we explain what a Heggstad petition is and why you may want to use one, we have to provide some background information about living trusts. This is because the petition could be useful if you use a revocable living trust as the centerpiece of your estate plan.Living Trust BenefitsMany people think that a last will is the right choice as a sole asset transfer device based on some misconceptions. One of them is the notion that your assets would be distributed very quickly and … [Read more...] about A Heggstad Petition Can Provide a Solution
Steer Clear of These Estate Planning Traps
Many people procrastinate when it comes to estate planning because they think that it is a huge task to undertake. They know that they should take care of this responsibility, so they embrace certain notions that can be described as “traps” because they can yield negative consequences.We will look at a few of them here to provide some clarity so you know why you should probably avoid overly simplistic estate planning solutions.Do-It-Yourself Estate PlanningThere are a number of websites … [Read more...] about Steer Clear of These Estate Planning Traps
Gift Tax Closes Window of Opportunity
As you go through life, you pay taxes at every turn. There are income taxes on the federal level, and if you live in California where we practice law, you have to contend with a state-level income tax. Property taxes, capital gains taxes, and sales tax will enter the picture as well, and there are other taxes that fly under the radar, like gasoline and hotel taxes.Since you are required to hand over all these different slices of your personal pie, it would seem as though your death should … [Read more...] about Gift Tax Closes Window of Opportunity
