Many Estate Planning attorneys shy away from business succession planning, but if you approach it like you do any other asset, it’s not so scary! First, it’s important to understand that entities involve not just the business relationship, but family relationships as well. Often, businesses start with one or maybe two members of a senior generation who have the funds, desire, and connections to create the business. It’s not always clear, though, what will happen when that senior generation … [Read more...] about Business Succession Planning May Be Easier than You Think
People naturally have questions about the taxes that can come into play when inheritances are being distributed. There is not much good news to pass along about taxation in most cases, but this is an exception. You do not have to report an inheritance as income, and this includes insurance policy proceeds. Another benefit is the step-up in basis, which applies to capital gains taxes. This means assets you inherit are valued as of the date of inheritance. If you inherit assets that … [Read more...] about Will My Family Pay Inheritance Taxes?
There are many different ways to facilitate asset transfers. It is important to consider the life situation of every person on your inheritance list. The right way to provide for one person may not be appropriate for the next. This definitely enters the picture when it comes to estate planning for people with special needs. Government Benefits In the United States, most people get health insurance through their employers. Unfortunately, a significant percentage of folks with disabilities … [Read more...] about Special Needs Planning: Life Enhancements With No Loss of Benefits
Estate Planning practitioners field questions regarding disinheriting beneficiaries regularly. The second question often relates to what happens when that beneficiary or any other tries to have the estate plan or portions thereof overturned. An “in terrorem” or “no contest” clause usually acts as a deterrent to such beneficiaries by completing divesting them of their inheritance should they choose to initiate a lawsuit. Read on to learn more … [Read more...] about What an In Terrerem Clause Can Do for You
Many people equate estate planning with the creation of a last will. In fact, most individuals would be better served by utilizing a revocable living trust. In this post, we will share five compelling reasons why you should use a living trust instead of a will. 1. Probate Avoidance You may have watched a movie or a television show that depicted a scene taking place after a funeral. People gather at someone’s home after the service. Certain individuals are then called into the study for the … [Read more...] about Five Ways a Trust Can Be Better Than a Will
Probate is a legal process that will enter the picture if you use a simple will to state your final wishes. The probate court also presides over intestacy cases. This is the situation that arises when someone passes away without a will or any other estate planning documents. Creditors are given an opportunity to come forward seeking payment during probate. The court examines the will to determine its validity. If anyone wanted to contest the will, they could come forward during probate to … [Read more...] about Do All Estate Transfers Go Through Probate?
Estate planning attorneys need to understand and explain taxation of trusts in order to properly advise clients. Individual clients need to understand the implications of the plan their attorney suggests in order to properly file their own taxes. Determining whether a trust qualifies as a grantor trust or a nongrantor trust is the first step in determining tax liability for a particular year. Read on to learn more … [Read more...] about Let’s Talk about Trusts…and Taxation
A living trust is the ideal estate planning tool for a wide range of different people. We are going to look at the tax implications in this post. Before we get there, however, we will explain some of the benefits living trusts provide. Simplified Estate Administration Many people think the estate administration process is very simple when you use a will. They also believe trusts are extremely complicated. In reality, nothing could be further from the truth. If you use a will, you name an … [Read more...] about Are Living Trust Distributions Taxable?
There are many different legal devices that can be used to satisfy a wide range of estate planning objectives. You should never assume that you have to settle for an arrangement that is less than ideal. An attorney from our firm can gain an understanding of your wishes and make sure they come to fruition, and we are always here to help. With this in mind, let’s look at a very effective approach to estate planning for parents that are getting remarried. Premarital Agreement If you are a … [Read more...] about Remarriage Can Create Estate Planning Concerns
Even individuals with modest estates purchase life insurance which means that Estate Planning attorneys must understand the rules regarding taxation of life insurance. Retention of certain powers or certain transactions could cause negative income, gift, or estate tax consequences. Read on to learn more. … [Read more...] about Application of the Transfer for Value Rule to the Sale of Life Insurance