When you are planning for your retirement and shaping your ultimate legacy, the exact nature of your assets and your own intentions will have a lot to do with how best to position them. For people who are looking for a way to reduce the taxable value of their estate while using volatile assets as a source of ongoing income the grantor retained annuity trust or GRAT is something to take into serious consideration. The strategy that we would like to take a look at here is the "zeroed out" … [Read more...] about GRATs For Appreciable Assets
Should You Avoid Probate?
Probate is a process that allows for the administration of your estate under the supervision of the probate or surrogate court in the jurisdiction that is local to you. The executor or personal representative of the estate actually engages in the hands-on machinations, but everything is done under the watchful eye of the court. Anyone who wanted to contest the will would do so during probate, and this is also the period of time during which creditors would be paid and rightful claims against the … [Read more...] about Should You Avoid Probate?
Direct Tax Efficiency, Asset Protection Strategy
There were those who were relieved to see the estate tax exclusion raised to $5 million via the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, and any tax relief is better than no tax relief. But if your estate is worth more than $5 million it is still going to be subject to a 35% federal death levy, so you have to look for ways to gain estate tax efficiency. One of these is the practice of tax-free gift giving. Prior to the passage of this new … [Read more...] about Direct Tax Efficiency, Asset Protection Strategy
New Estate Tax Provisions Are Far From Permanent
If you were following the news around the end of the year you are well aware of the fact that a new tax bill that is now being called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 made it through Congress and was signed into law by the president on December 17th. This measure extended the Bush tax cuts and also reduced the Social Security payroll tax by nearly a third for 2011. In addition, the estate tax exclusion was raised to $5 million and the rate of … [Read more...] about New Estate Tax Provisions Are Far From Permanent
Estate Planning Is For The Elderly, Right?
People generally live very busy lives these days, and when you're caught up in your day-to-day affairs time can pass very quickly. As a result of this you may have certain responsibilities in the back of your mind that wind up being consistently passed over as the twists and turns of life take place in the present. This is especially true when the responsibility in question could seem on the surface as though it is something that is only relevant to those who are getting up in years. Clearly, … [Read more...] about Estate Planning Is For The Elderly, Right?
The Purpose of the Living Will
Whenever you delve into any financial or legal discipline you're going to run into many different terms, and when you are new to these areas some of them will seem foreign and confusing at first. Of course estate planning is this type of field because it involves the utilization of so many different types of financial instruments, and some of them are different forms of the same essential vehicle. But even if it is your first day exploring the realm of estate planning there is one term that you … [Read more...] about The Purpose of the Living Will
Estate Tax Repeal Sentiment Builds In House
They say that everything is relative and when you look at the recent changes to the estate tax it is a good idea to keep this truism in mind. The estate tax was repealed for 2010 but the last time it was in effect in 2009 the exclusion amount was $3.5 million and the rate of tax was 45%. This would represent a meaningful point of relativity when you consider the fact that the new "tax relief" bill that was passed and signed into law in the middle of December allows for a 35% maximum rate of … [Read more...] about Estate Tax Repeal Sentiment Builds In House
Retirement, End Of Life & Estate Planning
People sometimes talk about retirement, end-of-life, and estate planning as being three distinct different practices, but in a very real sense they're all branches of the same tree. If you had unlimited wealth you might have a "bundle" of resources set aside that you considered to be your estate that you knew for sure you would never need to touch. If that was the case you could be more compartmentalized in your thinking. However, for most of us, even those of considerable means, how your active … [Read more...] about Retirement, End Of Life & Estate Planning
Interest-Free “Loans” Via Social Security No Longer Available
Working people of all ages know that Social Security exists because you can't help but notice the huge bite that it takes out of your paycheck every couple of weeks. But as your retirement years start to come into clearer focus Social Security becomes much more immediately relevant. While it is true that few people are going to be able to enjoy a robust retirement on Social Security alone it can certainly give you a boost. Most people are aware of the fact that the amount that you receive is … [Read more...] about Interest-Free “Loans” Via Social Security No Longer Available
Financial Abuse Of Elders Is A Growing Problem
Most estate planning attorneys are completely dedicated to the broader specialty of elder law, and to represent your clients properly you need to keep your ear to the ground and identify emerging trends. One issue that is getting a lot of attention is that of elder financial abuse, and when you look at the expansion of the senior population it is very likely that the problem is going to get worse before it gets better. There is no particular birthday that you celebrate that makes you more … [Read more...] about Financial Abuse Of Elders Is A Growing Problem
