Financial success is a beautiful thing, and it is a good feeling to be able to leave behind a legacy for your loved ones to draw from after you are gone. This being stated, there are looming threats in the form of death taxes.Generally speaking, inheritances are not subject to regular income taxes, but there is a federal estate tax that can have a significant negative impact. This levy carries a 40% maximum rate, so we are not talking about a barely noticeable nibble. The high rate is the … [Read more...]
Don’t Make Assumptions About Trusts
People often harbor misconceptions about the nuances of estate planning, and this can lead to bad decisions that yield negative consequences. One of them is the idea that you would never want to use a trust unless you are extremely wealthy. Folks that are under this impression assume that a last will is the only logical choice if you are not a multimillionaire.There is a kernel of truth in this line of thinking. High net worth individuals do use trusts of various kinds to satisfy complex … [Read more...]
Will My Heirs Pay an Inheritance Tax?
Taxation would logically enter your mind when you are contemplating your legacy, and most of the news is surprisingly good when it comes to taxes on inheritances. First, an inheritor does not have to report a bequest as taxable income, and appreciated assets that are inherited get a step-up in basis.What is a step-up in basis, you ask? The best way to explain is by way of a simple example. Let’s say that your grandfather bought some stock that cost him a total of $10,000, and he leaves you … [Read more...]
529 Plans: Planning for Education with a Tax and Asset Protection Bonus
Planning is important when providing for your children or grandchildren. But planning for their education has special importance and may have special advantages. This article looks at how 529 plans may have tax advantages when providing for education. Further, the article looks at how such a plan may provide asset protection in bankruptcy, as well.529 Plans: Planning for Education with a Tax and Asset Protection Bonus … [Read more...]
Planning for the Unexpected
It’s important to have a plan. If you don’t have a plan, your state law dictates who gets your property and makes decisions for you. Read on to learn more about the prevalence of unexpected deaths and an example of what can happen without planning.Planning for the Unexpected … [Read more...]
Planning for Education Expenses
Planning is important when providing for your children or grandchildren. But planning for their education has special importance and may have special advantages. This article looks at how a trust can be used to provide for your child or grandchild’s education. The article looks at how a trust can protect those funds.Planning for Education Expenses … [Read more...]
Planning for Special Needs Children
Planning is important when providing for any of your children. But planning is even more important for special needs children. Without proper planning, an inheritance can jeopardize a special needs child’s needs-based benefits, such as SSI or Medicaid. Read on to learn more about planning for special needs children.Planning for Special Needs Children … [Read more...]
Two Trusts That Provide Advanced Solutions
People often reduce estate planning to the creation of a last will, but in reality, there are many different legal tools in the toolkit that estate planning lawyers can utilize. The proper course of action will depend upon the circumstances.This is why we place an emphasis on personalized attention when we work with clients. We gain an understanding of your unique situation and your estate planning goals, and we provide the appropriate solutions. Let’s look at a couple of the scenarios that … [Read more...]
Probate Can Be Misunderstood
When you decide that you want to obtain information about something, you can easily pop a term into your favorite search engine in an effort to educate yourself.Without question, a lot very valid information can be found online, but you do have to keep a watchful eye. The Internet is used by completely objective entities, but there is also a great deal of business conducted. When you search for a term, you are invariably going to run into articles that are intended to drive commerce.This … [Read more...]
Long-Term Planning: One Thing Leads to Another
Financial planning should be looked at as a long-term, holistic process. When you first embark on a career path, you want to develop some savings with certain financial goals in mind. A home purchase may be the first step, and the short of this, you want to make sure that you have a nest egg to draw from on a rainy day.As your life evolves over the years, you may get married and have children. At that point, financial planning will take on a different complexion as you look ahead toward the … [Read more...]
