Estate Planning

The federal gift tax is in place to prevent people from giving gifts in an effort to avoid the estate tax. Shortly after the enactment of the estate tax in 1916, people did give gifts to sidestep the tax, because there was no gift tax. The gift tax was enacted a few years later, and after a brief repeal, it was reenacted in 1932, and it has been in place ever since. Annual Gift Tax Exclusion Every gift that you give is not going to be taxed, because there are some gift tax exclusions. One of … [Read more...] about What Is the Annual Gift Tax Exclusion?

A trustee is an estate administrator. When you create a revocable living trust, you can act as the trustee while you are living. Ultimately, you are creating the trust to facilitate asset transfers after you die. To make this happen, you name a successor trustee in the trust declaration. The successor trustee would administer the estate after your passing. Choosing a Successor Trustee When you think about a successor trustee, you may start to scour your mind for people that you know who may be … [Read more...] about What Is a Living Trust Successor Trustee?

When assets are changing hands, taxes can enter the picture. This is something to keep in mind when you are planning your estate, and it would naturally come to mind if you are going to be receiving an inheritance. In this post, we will look at some of the taxes that can be applicable, and we will look at some that are not. Income Taxes It would be logical to assume that you would be required to claim an inheritance as income when you file your annual tax returns. In fact, an inheritance … [Read more...] about Do I Pay Taxes When Someone Leaves Me an Inheritance in California?

The process of estate planning is something that is relevant to all responsible adults. It should not be looked upon as something that is only important for senior citizens. If you die without a will or a trust, you would die intestate, and the state would take over under these circumstances. Property that was in your direct and sole personal possession at the time of your passing would become probate property, and after debts were paid, it would be distributed under the intestate succession … [Read more...] about How Is My Property Transferred If I Die Intestate?

When you hear about the federal estate tax, you may assume that every estate is exposed. Fortunately, this is not the case. First of all, you should understand the fact that there is an unlimited marital estate tax deduction. You can leave unlimited assets to your spouse without incurring any estate tax liability, assuming your spouse is an American citizen. This citizenship requirement underscores the reason why you still need an estate plan that provides estate tax efficiency, even if you are … [Read more...] about How Can I Leave My Estate to My Spouse Tax-Free?

Estate administration is something that you should be informed about when you are putting your estate plan together. There are various business-related tasks that must be completed after you die to make your wishes come to fruition. If you use a last will to facilitate asset distributions after your passing, the estate administrator would be called the executor. We will use the term executor here for the sake of simplicity, but in some cases, a female estate administrator will be referred to as … [Read more...] about What Is an Executor in California?

Some people are under the impression that trusts are only useful for high net worth families. It is true that there are trusts that are used by people who are wealthy, but there are other types of trusts that can benefit "the rest of us." One of them is the revocable living trust. A revocable living trust is a vehicle of asset transfer that provides a great deal of flexibility. When you look at the name of the trust, you get some immediate insight: You can revoke this type of trust at any time. … [Read more...] about Does a Revocable Living Trust Provide Asset Protection?

If you are contemplating your estate planning choices, you may logically look at a will versus a living trust as an either/or proposition, like paper or plastic. In fact, if you were to use a revocable living trust as your primary vehicle of asset transfer, you should also have a couple of different wills tucked away within your estate planning portfolio. Personal Property When you create a revocable living trust, you convey assets into the vehicle. You can act as the trustee and the … [Read more...] about Why Would I Need a Pour-Over Will?