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?
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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?
What Is an Elder Law Attorney?
There are different legal specialties that attorneys are passionate about, and one of them is elder law. This is a very important area of the law at the present time, because an unprecedented number of Americans are attaining senior citizen status at the same time. You have to take careful steps to prepare for your senior years if you want to be comfortable and secure. Elder law attorneys help people who are preparing for this stage of life. There are some elder law issues that are very … [Read more...] about What Is an Elder Law Attorney?
Can a Trust Protect Family Wealth?
Protecting your wealth for the benefit of your loved ones is an important part of the equation when you are planning your estate as a high net worth individual. The federal estate tax is a looming threat, and it can take a significant toll given its 40 percent maximum rate. To determine your level of estate tax liability, you would first inventory your assets. Once you come up with a figure, you compare the value of your estate to the amount of the federal estate tax credit or exclusion. During … [Read more...] about Can a Trust Protect Family Wealth?
What Is a Supplemental Needs Trust?
A supplemental needs trust is a type of trust that can be useful if you have someone with a disability on your inheritance list. We will look at the details in this blog post. Health Insurance Clearly, health insurance is going to be very important for people with special needs. In many cases, medical bills can total millions of dollars over the course of a lifetime when you have a disability. Most people get health insurance through their jobs, but many people with disabilities cannot … [Read more...] about What Is a Supplemental Needs Trust?
Why Would I Want a Revocable Living Trust?
There are numerous different tools in the estate planning tool kit, and you should make informed decisions, because leaving everything that you have to those that you love the most is a profound endeavor. With this in mind, we will look at the value of using living trusts in California in this post. Alternative to a Last Will Most people have heard of the document called a last will, and you may assume that you should use a will if you are not extraordinarily wealthy. In fact, a revocable … [Read more...] about Why Would I Want a Revocable Living Trust?
Elder Law FAQs: Is There a Medi-Cal Asset Maximum?
Medicaid is important to many elders, because it will pay for long-term care. This is a very big issue within the elder law community, because most seniors will need long-term care, and it is very expensive. Medicare does not pay for living assistance. The Medicaid program is in place to provide health care insurance for people who have been unable to accumulate significant resources. Because of the fact that eligibility for this program is based on financial need, there is an asset limit of … [Read more...] about Elder Law FAQs: Is There a Medi-Cal Asset Maximum?
What Is a Conservatorship?
Estate planning is best viewed as a comprehensive endeavor that goes beyond the matter of postmortem asset transfers. When you plan your estate, you should also consider end-of-life issues. With this in mind, we will look at the subject of conservatorship in this blog post. The definition of a conservatorship will vary depending on the state in question. In some states, a conservator will handle the financial affairs of a ward who cannot handle his or her own affairs for one reason or another, … [Read more...] about What Is a Conservatorship?
What Is a Living Will in California?
If you are not familiar with any other estate planning document, you have probably heard of the document called a last will or last will and testament. As most people are aware, this document can be used to state your final wishes regarding the distribution of your property after your passing. The last will is very commonly utilized, but it is not the only type of will that is used in the field of estate planning. There is another type of will that is commonly called a living will. Advance … [Read more...] about What Is a Living Will in California?
