• Titles To Assets

  Friday, November 20, 2009

  Q: My husband and I have real estate and other assets. Some assets are titled in our names as joint tenants, but most just have both of our names on the titles. What should we do for estate planning purposes? A: You’ve asked for help in a complex area of the law. The difficulty arises from the fact that different states recognize different kinds of property titles, and those titles sometimes mean different things. But correctly titling assets is important for estate planning, because the way assets are titled determines how those assets are handled when the owner or owners ...

• Estate Taxes

  Thursday, November 12, 2009

  Q: My wife and I are worth about $4 million. We have two adult daughters. How can I avoid estate taxes when I die? A: When either you or your wife dies, there won’t be any tax on the decedent’s half of the estate. However, if the survivor inherited the decedent’s portion, and then died before 2009, there could be a federal estate tax of $900,000 or more, depending on the value of your estate. A/B trusts provide an easy way to avoid paying such taxes even though your joint estate exceeds the current exclusionary amount of $2 million. You ...

• Protect Your Children

  Thursday, November 05, 2009

  Q: My husband and I have three children under age six. Do we need wills? A: You should each have a will, especially to help your children. If one of you dies, the surviving parent will continue as the children's natural guardian. But if both of you die, your children will need a guardian. Your individual wills allow you to name that guardian, someone who you believe to be the best person to care for your children. You can also name an alternate guardian in case your first choice can't serve. Another reason to have a will is that, in ...

• We’d like to begin giving some of our estate away to our children. How can we do that without paying gift taxes?

  Wednesday, October 28, 2009

  If you gift money to individuals, whether or not they are related to you, you can give up to $12,000 a year without paying any gift tax or being required to file a gift tax return. And you can give that amount to as many people as you want. You can gift the same amount to them next year as well, and every year until the $12,000 limit is changed. You can also give more than $12,000 to any individual in a year, up to a fixed limit. That limit, known as the lifetime federal gift tax exclusion, for any ...

• My wife and I would like to give some of our estate to charity. What are the rules?

  Wednesday, October 21, 2009

  The IRS divides charities into two general groups: 50-percent charities and 30-percent charities. Generally, churches, schools, hospitals, governmental units and certain qualifying foundations are considered 50-percent charities. Other organizations that don’t qualify as 50-percent charities are considered 30-percent charities. Gifts to qualifying charities are subject to different rules and depend upon the gross income of the donor, whether or not the donor is an individual or a corporation, the type of property donated, and whether the donee is a 50-percent or a 30-percent charity. If you, as an individual, want to donate cash to a 50-percent charity, the total available ...

• What's the difference between estate taxes and inheritance taxes?

  Wednesday, October 14, 2009

  Estate taxes are levied on the value of the assets that were owned by a deceased individual.  They are usually paid out of the estate before it is distributed.  Inheritance taxes are levied on the portion of an estate inherited by a specific individual.  These taxes are the responsibility of the individual who inherits. The federal government levies a federal estate tax, but not an inheritance tax.  Some states also levy estate taxes, although the federal estate tax, if applicable, is the largest tax levied.  Relatively few states have inheritance taxes. 

• Planning with Trusts, the Basics

  Wednesday, April 08, 2009

  Trusts can be grouped in to the following categories: Living trusts - established while you are still alive Testamentary trusts – established by the terms of your will Living Trusts can be: Revocable – meaning that the trust creator can decide to revoke the trust, or a portion of the trust, and resume ownership of the assets Irrevocable – meaning that the trust creator has permanently given up ownership of any assets placed in the trust See Revocable v Irrevocable Trusts below. There are a variety of reasons to set up a trust. In some cases you may even want to do ...

• Choosing a Guardian: Who will take care of our minor children?

  Saturday, March 21, 2009

  The most difficult estate planning decisions involve the simultaneous death of both parents, and the most difficult of those decisions is who to choose as guardian of your minor children. It is difficult to imagine that anyone would raise your children with as much love and care as you would. For that reason, it may seem that there is no one who is a satisfactory choice. Nevertheless, a well-thought-out choice is better than no choice at all. Remember, should the need for a guardian arise, the situation is already less than ideal and difficult circumstances already exit. By careful thought and planning now, you can try to assure ...

• How often should I revise my estate plan and/or have a new will drawn?

  Sunday, March 15, 2009

  The simple answer is that you should review your will (and trust documents if any) at least annually. You will be surprised at how difficult it is to do so since such a review is easily forgotten. You need an effective way to schedule this review and a good time is immediately after you have filed your federal income tax return for the simple reason that you will have a good grasp of your personal financial matters at that time. However, any method that consistently causes you to remember to review your will etc. is fine. Upon review, it will probably be obvious whether or not any ...

• What happens if I die without a will, i.e. intestate?

  Sunday, March 08, 2009

  Every state has laws, called intestacy laws, which determine what happens to real and personal property in the event that an individual dies without a will that can be located and probated. Intestacy laws may also determine who will act as guardian, and trustee if needed, of minor children. These laws do not recognize personal circumstances or personalities, nor do they, in many cases, provide the judge who is applying them much latitude with respect to his decisions. In certain circumstances, in certain states, it is said that the state may benefit from your intestacy to a greater degree than your heirs. The results of decisions and distributions ...

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