A common estate planning misconception harbored by many people is the idea that you lose direct personal control over assets you sign over to a trust. Since they want to use the resources if necessary, they instead create a simple will to satisfy their estate planning needs. In this post, we will dissect this assumption so that you can make informed decisions. Irrevocable Trusts Some trusts that cannot be revoked once they have been established. If you create an irrevocable trust, you … [Read more...] about Do You Lose Control of Assets in a Trust?
Estate Planning
Removing Life Insurance Without Triggering the Transfer for Value Rule
Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the taxable estate. But there are two potential traps in this. The prior article examined the first trap, the three-year lookback of Section 2035. This article will examine how the Transfer for Value rule can make life insurance taxable. Read on to learn more about how to avoid the income taxation of life insurance. by Steve Hartnett This is the second in a … [Read more...] about Removing Life Insurance Without Triggering the Transfer for Value Rule
Leave Instructions for Your Estate Administrator
As with many things, you can approach estate planning in more than one way. Some people do the bare minimum, while others see a more comprehensive picture. The steps you take during the planning process will determine how quickly and efficiently your loved ones receive their inheritances. With this in mind, let’s take a look at the role of the estate administrator. Executor or Trustee If you decide to use a will as your asset transfer vehicle, you will name an executor or personal … [Read more...] about Leave Instructions for Your Estate Administrator
Removing Life Insurance from the Taxable Estate
Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the estate. But, there are two potential traps in this. by Steve Hartnett This is the first in a two-part series of articles regarding life insurance and removing it from the taxable estate. This first article examines why life insurance is in the taxable estate and how to remove it. The second article will examine the application of the “Transfer for Value” … [Read more...] about Removing Life Insurance from the Taxable Estate
5 Things to Consider When Creating Your Estate Plan
Before you sit down to create your initial estate plan, it is always a good idea to learn more about the process by talking to an experienced estate planning attorney. Your estate planning attorney can also help explain the process and make you feel less intimidated. Before you even get to your scheduled initial consultation, however, there are things you can think about that will ultimately help your first discussion with your estate planning attorney to be more productive. The Oklahoma City … [Read more...] about 5 Things to Consider When Creating Your Estate Plan
Leaving Assets Can Be Tricky – Part 3
Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. For example, if you have a beneficiary with special needs, you must take special care. July 28, 2020 by Steve Hartnett 0 Comments Maybe you grew up without much. You worked hard. You earned a good education. You succeeded in life even though the streets weren’t paved with gold where you grew up. In fact, maybe you grew up in a very impoverished, oppressed … [Read more...] about Leaving Assets Can Be Tricky – Part 3
IRAs and Your Inheritance Plan
An individual retirement account can help you enjoy your golden years to the fullest. That said, if you experience a certain level of financial success, you may never need the money in the account. Under these circumstances, your IRA would become part of your estate plan. Let’s look at the details, including some changes that have been recently implemented. Traditional vs. Roth Individual Retirement Accounts The two types of individual retirement accounts that are most commonly utilized are … [Read more...] about IRAs and Your Inheritance Plan
Leaving Assets Can Be Tricky – Part 2
Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. July 21, 2020 by Steve Hartnett Maybe you grew up without much. You worked hard. You earned a good education. You succeeded in life even though the streets weren’t paved with gold where you grew up. In fact, maybe you grew up in a very impoverished, oppressed community. Now you (and your spouse if you’re married) have accumulated enough so you’re … [Read more...] about Leaving Assets Can Be Tricky – Part 2
How Are Inheritances Taxed?
People often have questions about the way that inheritances are taxed, and many of them assume that you would have to report a bequest when you file your income taxes. In fact, even though it may be a bit surprising, this is not the case at all. Inheritances are not considered to be taxable income by the Internal Revenue Service or state tax agencies. This includes direct inheritances and insurance policy death benefit payouts, at least for now. Another piece of good news pertains to the … [Read more...] about How Are Inheritances Taxed?
Leaving Assets Can Be Tricky
Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. July 14, 2020 by Steve Hartnett Maybe you grew up without much. You worked hard. You earned a good education. You succeeded in life even though the streets weren’t paved with gold where you grew up. Maybe you even grew up in a very impoverished, oppressed community. Now you (and your spouse if you’re married) have accumulated enough so you’re comfortable. … [Read more...] about Leaving Assets Can Be Tricky
