One of the disadvantages to a will compared to a trust is that a will must go through the probate process. Family members and others with vested interests in the estate may challenge the will during probate. By understanding the most common reasons a will gets challenged, you can prepare your estate plan to ensure a will contest does not …
Very few Americans will ever need to worry about paying the federal estate tax. Those for which the tax may apply, however, should know that the current exemption for individual estates is $5.49 million before the 40 percent estate tax gets applied. Although the proposed tax plan in Congress would lead to significant estate tax changes in the coming years, …
Life insurance is an effective way to protect your family in the event of your untimely death. It can replace income and give your family the ability to cover mortgage payments, the costs of education, medical bills, or other general expenses. Thus, a life insurance policy can be a crucial part of many estate plans. Below we review the various …
There are special rules that exist for trusts that hold shares or stocks in S corporations. In fact, there are only three types of trusts that may hold these assets: Grantor trusts Qualified subchapter S trusts (QSSTs) Electing small business trusts (ESBTs) There are additional requirements each of these trusts must meet to hold stocks or shares in S corps. …
It is quite common for people to want to attach conditions on an inheritance they leave to their children. You might, for example, be concerned about your child’s spending habits or a substance abuse problem. Adding conditions to your will and estate plan can help your kids use the money and assets they receive more responsibly. You might find it …
If your spouse is not a citizen of the United States, some special rules could affect your estate planning process. In general, you will proceed just as you would if your spouse was a legal citizen. The following are some estate planning matters all people should address, regardless of their citizen status: Making a will or living trust to leave …
All parents should consider the futures of their children in their estate planning. However, there are some special considerations parents of children with disabilities must address when putting together their wills, trusts, and power of attorney documents. At the outset of your estate planning process, speak with your attorney in detail about the disability in question, the abilities and limitations …
A charitable remainder trust is an excellent way to pass on assets from your estate to the charity of your choice, while also giving you and your beneficiaries a sizeable tax break. It’s an especially sound option for people who wish to make large donations to charities upon their death. However, you should keep in mind that a charitable remainder …
Establishing a durable power of attorney for finances is a straightforward and reliable way to arrange for someone to manage your finances in the event of your incapacitation. This designation will remove a significant amount of stress from your family members, who might otherwise be unable to maintain the financial affairs of your estate. Below is a general overview of …
Advance directives are legal documents and tools that outline your wishes concerning the long-term medical care, particularly at the end of your life. These tools are especially useful in the following situations: You cannot make your own medical decisions You are in a state of terminal illness or incapacitation You meet certain other requirements as outlined in state law One …
