There are many reasons to want to avoid probate: it becomes a matter of public record, it can cost your heirs a lot of money, and it can sometimes take years. For these reasons, many people take it upon themselves to try and avoid probate at all costs.
The most common choice you have when setting up an estate plan is the choice between a will and a living trust. A will is always a one-way ticket to probate unless your estate falls below a minimum threshold of value. In many states, the minimum threshold is about $50,000. In California, that threshold is $165,250.
Traditionally when we think about the administration of a decedent’s estate, we envision a process that focuses on the individual’s tangible personal property and belongings, financial assets, business interests, and real estate.
Making allocations for loved ones with special needs requires special care. Unlike other beneficiaries of your estate, your loved ones with special needs cannot inherit money directly. Doing so could put their Medicaid benefits at risk. If you wish to provide for an individual with special needs, it is vital you adhere to specific estate planning strategies.
If you are going through the estate planning process, you may find it confusing. There are several options available to you, so this is natural. Many people wonder whether they should have a will, or trust, or both.
If you are considering a deferred sales trust, it is vital that you understand the relationship between capital gains tax and the deferred sales trust. In many situations, a deferred sales trust is a great way to avoid losing a lot of money to capital gains tax, but to reap the benefits you must engage in careful estate planning.
When estate planning many people wish to use their assets to help fund their favorite charities, in addition to providing for their families and loved ones. Donating can make a lasting impact on charities and you and your family can also reap tax benefits. The most popular variety of charitable trust is a charitable remainder trust.
If the total estate, including assets held personally or in trust which exceed the exemption, then the estate will be subject to estate taxes of approximately 40% of all assets that exceed the exemption.
Many family businesses have been adversely affected by the novel coronavirus (COVID-19) pandemic. But there's a silver lining: Proactive tax planning […]
The novel coronavirus (COVID-19) pandemic has made many parents even more anxious about their children's welfare than usual. Children may be […]