Trusts are useful vehicles both during life and after death. This article examines how trusts are income taxed. Grantor trusts are taxed to the grantor, regardless of whether the income is distributed to them. Nongrantor trusts are separate taxpaying entities but get a deduction for distributions to beneficiaries. Read the article to learn more. How Are Trusts Taxed? … [Read more...]
Obtain Your South Carolina Estate Planning Report
Far too many families find themselves in difficult situations due to a provider's lack of long-term planning. There are a number of reasons why so many individuals do not take action to put an estate plan in place. One of them is the simple fact that they don't understand some of the consequences that go along with a failure to prepare for the future. To help people gain an understanding of estate planning, all that it entails, and why it is important we have prepared a report. We are offering … [Read more...]
Paving the Way for Your Grandchildren
When you are planning your estate there are going to be different people on your inheritance list who are going through different stages of life. The ages of the people that you are leaving inheritances to can help dictate how you should proceed with regard to each individual. When it comes to grandchildren you have various options. If you are interested in leaving behind resources for minor grandchildren you could give gifts in trust. If you go this route you could utilize the $13,000 annual … [Read more...]
Consult With Your Attorney Before Remarrying
Once you have been able to accumulate a significant store of financial resources you must be very diligent about preserving your wealth. If you engage the services of a good financial planning attorney you always have the support that you need when you have questions. Your attorney will gain an understanding of your situation and give you ongoing advice as you take steps to protect and build on the financial foundation that you have been able to put in place. With the above in mind life events … [Read more...]
Making Life More Comfortable for a Person With Disabilities
An inquiry was recently conducted by the respected magazine Consumer Reports that is of interest to people within the estate planning community. They wanted to find out if do-it-yourself estate planning documents were really valid replacements for wills and trusts created by licensed attorneys. Staff members created last wills using downloads or worksheets provided by three of the leading online purveyors of legal documents. Three legal professors were asked to examine these documents and share … [Read more...]
Getting Remarried? Action is Required
There are certain life events that people can go through that will trigger an estate plan update. Getting remarried is one of them. Of course one thing that you are probably going to want to do will be to include your new spouse in your estate plan. But you have to ask yourself exactly how you want to go about doing it, especially if you have children from a previous marriage. The possibility of entering into a prenuptial agreement is something that you should certainly consider. When you … [Read more...]
Three-Year Wait for ILITs
An irrevocable life insurance trust can be a very useful tax efficiency tool for people who have valuable life insurance policies. If you simply make someone the beneficiary of a policy that you own as an individual he or she will receive the proceeds free of income tax. However, these proceeds will be considered to be a part of your estate for estate tax purposes. Given the fact that the maximum rate of the estate tax is 35% this year and 55% in 2013 you certainly want to do whatever it takes … [Read more...]
Keeping That Safety Net in Place
Inheritance planning attorneys generally find that people can come to terms with their own mortality, but as parents and grandparents we develop a firmly embedded sense of responsibility to our families. The thought of no longer being around to provide help in whatever way it may be needed can be the most difficult thing to get past when you are contemplating the inevitable. This can be especially troubling if you have someone that you love that would seem to be capable of burning through his … [Read more...]
Remember Home Value When Evaluating Estate Tax Exposure
There are those who go forward unconcerned about the estate tax because they have heard that it is something that only applies to the very wealthy. Just how true this is will depend on your definition of "very wealthy." In fact, when 2013 arrives you really don't have to be a powerful tycoon to find yourself in possession of resources that exceed the estate tax exclusion amount, especially if you include the value of your home. Next year the estate tax exclusion is going down to just $1 … [Read more...]
Living Trusts Examined
If you didn't know better you may assume that revocable living trusts are only beneficial to people who have complicated portfolios and an extraordinary store of assets. But in fact, these trusts can be very useful for "the rest of us," and you should not discard the possibility of utilizing such a vehicle when you are planning your estate. One of the best reasons for choosing a revocable living trust would be to avoid probate. Unless you arrange for asset transfers outside of probate through … [Read more...]
