To understand the value of a qualified personal residence trust, you have to absorb some background information about federal transfer taxes. You may assume that you can give assets to others without incurring any tax responsibilities, but in fact, the tax man does not see it this way. There is a federal gift tax that can be applied when large gifts are given. You can give up to $14,000 per person to any number of gift recipients tax-free within a year, but anything above this would be subject … [Read more...] about What Is a Qualified Personal Residence Trust?
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Can Medi-Cal Take My Home?
The Medi-Cal program is widely utilized by seniors who need assistance paying for long-term care, because Medicare does not pay for living assistance. The average annual cost for a room in a nursing home is around $100,000, so Medi-Cal eligibility can allow seniors to leave their hard-earned resources behind to their loved ones. You do not qualify for Medi-Cal automatically if you are a senior who is in need of long-term care. The program is only for people who have financial need. As a result, … [Read more...] about Can Medi-Cal Take My Home?
What Is the Medi-Cal Look-Back?
Before we examine the Medi-Cal look-back, we should explain why Medi-Cal would be relevant to you if you have never been financially needy throughout your life. Most people are aware of the fact that Medi-Cal is a health insurance program that is only available to people who can demonstrate a significant level of financial need. However, many seniors who retired with resources ultimately apply for Medi-Cal coverage, because the program will pay for long-term care. Medicare does not pay for … [Read more...] about What Is the Medi-Cal Look-Back?
What Is a Qualified Domestic Trust?
There are different types of trusts that can be used in the field of estate planning, and a trust can provide a solution to an estate planning challenge. With this in mind, we will look at the value of qualified domestic trusts in this blog post. However, to understand the benefits, you have to digest some information about the federal estate tax. If you are exposed to the estate tax, you have to implement estate tax efficiency strategies, because it can have a very negative impact on your … [Read more...] about What Is a Qualified Domestic Trust?
Who Can Act as a Living Trust Trustee?
Revocable living trusts are widely utilized in the field of estate planning. These trusts are versatile, and you can benefit from a revocable living trust even if you do not consider yourself to be extraordinarily wealthy. The person or entity who administers a living trust is called the trustee. One of the nice things about a revocable living trust is the ongoing control that you can retain as the creator of the trust. You can actually act as the trustee while you are alive and well. As a … [Read more...] about Who Can Act as a Living Trust Trustee?
How Long Does the Probate Process Take in California?
Distribution of your estate is an important facet to understand when you are devising your estate plan. You create documents to state your final wishes, but human action is required to bring your wishes to fruition after you pass away. In many cases, the probate process will enter the picture. Certain types of asset transfers are subject to the probate process, and others are not. Probate property could be described as property that is in your direct, sole personal possession at the time of … [Read more...] about How Long Does the Probate Process Take in California?
What Is the Difference Between Estate Planning and Legacy Planning?
When you are undertaking any type of endeavor, you can cover the bare minimum, or you can go the extra mile and act in a more comprehensive way. This dynamic enters the process of estate planning. You could put a very basic estate plan in place that would be better than nothing, or you could alternately engage in a process called legacy planning. A basic estate plan would typically include a last will, and those who want to cover the basics will also create some essential incapacity planning … [Read more...] about What Is the Difference Between Estate Planning and Legacy Planning?
What Is the Difference Between a General and a Limited Power of Attorney in California?
You may be aware of the fact that a power of attorney is a legally binding document that can be used to give another party the ability to act for you. The representative is called the agent or attorney-in-fact, and the person granting the power of attorney is called the principal or the grantor. There are different types of powers of attorney. There are general powers of attorney, there are also limited powers of attorney. Sweeping Power If you create a general power of attorney, you … [Read more...] about What Is the Difference Between a General and a Limited Power of Attorney in California?
Will My Heirs Be Forced to Pay an Inheritance Tax in California?
Taxation is a factor throughout your life, and you may feel as though it should no longer be an issue after you pass away. This may make sense to many of us, but we do have an estate tax on the federal level. Most people are exempt from the tax, because there is a credit or exclusion that is relatively large. For the rest of 2015, the federal estate tax exclusion is $5.43 million. If you are transferring less than $5.43 million, your family would not be forced to pay the estate tax. For those … [Read more...] about Will My Heirs Be Forced to Pay an Inheritance Tax in California?
What Is a Grantor Retained Annuity Trust or GRAT?
A grantor retained annuity trust or GRAT can potentially be of value if you are exposed to the federal estate tax. Before we explain the details, we should provide some background information about the federal estate tax so you can determine whether or not you are exposed. Death Tax The federal death tax carries a 40 percent maximum rate, and the amount of the exclusion for the rest of 2015 is $5.43 million. If your estate is valued in excess of $5.43 million, you are in taxable territory. We … [Read more...] about What Is a Grantor Retained Annuity Trust or GRAT?
