If you included a trust in your estate plan, which most people do, then you may be wondering how trusts affect income taxes. Different types of trusts have different tax consequences. An important factor in determining what your tax consequences will be is, determining who is responsible for paying the taxes on the trust income. Grantor trusts The “grantor” is the person who establishes a trust, either by gift or grant. If a trust is classified as a grantor trust, it means the grantor … [Read more...] about How Do Trusts Affect Income Taxes?
The purpose of estate planning is more than just distributing your estate to your loved ones after your death. The best estate plans also include instructions for managing your personal and financial affairs, in the event you are unable to do so, even prior to your death. Comparing living trust vs power of attorney, is a common exercise for many clients. This article will provide some insight into your options. Why do I need an estate plan? Planning for the future is extremely important. If … [Read more...] about Living Trust vs Power of Attorney
As long as your trust is revocable, it can be modified. Whenever your financial status changes, it is important to review the terms of your trust and make any necessary modifications. The flexibility of a revocable trust is what makes it such a valuable estate planning tool. If you buy or sell assets, it is wise to review and modify your trust. How to fund your trust with your assets Assets such as stocks, bonds, real estate and other real property can often be funded into a trust simply by … [Read more...] about Should I Modify My Trust if I Buy or Sell Assets?
One of the main goals of estate planning is to decrease, or eliminate if possible, the amount of estate taxes that must be paid upon death. This goal is easy to understand, since the current federal tax rate is 40%. Unless your estate is exempt, filing a federal estate tax return is required. But, when is an estate tax return due? What is the estate tax? Estate taxes must be paid whenever you transfer property upon your death. Put another way, you have a right to transfer your property at … [Read more...] about When is an Estate Tax Return Due?
There are many benefits to creating a trust. It is more than simply a method of probate avoidance. With a living trust, you have the ability to protect the property you intend to leave to your heirs, as well as plan for ways to reduce estate taxes. A trust can help you prepare in case of incapacity, as well as avoid the potential for a will contest. When clients consider whether a trust is a good option for them, they often ask about the annual fees for a trust in California. The amount of … [Read more...] about Annual Fees for a Trust in California
The purpose of estate planning is to avoid taxation by eliminating as many of your taxable assets from your estate as possible. This can be done in a various ways. Transferring your assets to trusts is one very common way. However, there are many different kinds of trusts, each with its own benefits. An Intentionally Defective Grantor Trust, or IDGT, is one type of trust with which you should be familiar. What is an Intentionally Defective Grantor Trust (IDGT)? An Intentionally Defective … [Read more...] about What is an IDGT?
As long as you have a revocable trust, it can be amended whenever you choose, during your lifetime. If your financial situation, family situation or any other aspect of your life changes, it is good to review the terms of your trust and make revisions as necessary. Many clients ask whether it is necessary to come into our office to make changes to a trust. At the very least, you will need to come by to sign, after the changes have been made. A trust must be signed to be valid The grantor must … [Read more...] about Do I Have to Come in to Make Changes to a Trust?
SERVICES OFFERED BY SCHOMER LAW GROUP. For more information, please call (310) 337-7696 or visit www.schomerlawgroup.com. At the Schomer Law Group, we are dedicated and have a passion for preserving and protecting your legacy. Helping clients protect their legacy is our strong preference, to help them create a state-of-the-art estate plan that will capture their values and wishes and allow them to pass along their estate with minimal court or governmental intervention to their loved … [Read more...] about Video Blog: Services Offered by the Schomer Law Group – Living Trusts, Wills, Probate, Litigation
Being a Personal Representative in California When a resident and property owner in California dies, and that person owns probate assets in his or her name, that person’s estate maybe required to go through a legal process known as probate. Probate assets are assets that are titled in the deceased individual name rather than a probate avoidance device such as a living trust. Probate is the process for managing these types of assets whether or not the person had a will. A Personal Representative … [Read more...] about Free Report: Being a Personal Representative in California
With proper estate and legacy planning, wealthy families have a better chance of success in passing on their fortune to their family, from one generation to the next. Topics covered in this whitepaper include: What is Legacy Wealth Planning Family Wealth Trusts Generation Skipping Trusts Reduce Taxes However Possible Charitable Donations Teach Your Children to Teach Their Children Click here to read the whole article or download the PDF. … [Read more...] about Free Report: How to Preserve Your Wealth For Generations in California