Estate Planning

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?

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?

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?

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?

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?

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?

The federal estate tax is a very big factor for people who have been highly successful from a financial standpoint. There is a line in the sand that is drawn between people who must pay the tax and those who are exempt. It exists in the form of the federal estate tax credit or exclusion. During the current calendar year, the amount of the federal estate tax exclusion is $5.43 million. This can sound like a good bit of money, but you have to remember the fact that your real property, your … [Read more...] about Should I Use My Estate Tax Exclusion During My Lifetime?

There are numerous different steps that you can take to facilitate postmortem asset transfers. Some of them are more effective than others, and one very limited possibility is the payable on death account. This is a type of account that you can open at a bank or brokerage. To a large extent, the way that it works is self-explanatory. You add a beneficiary when you create a payable on death or transfer on death account. After you die, the beneficiary assumes ownership of anything that may remain … [Read more...] about What Is a Payable on Death Account in California?

There are a number of different ways to make sure that your loved ones receive your property after you pass away. Joint tenancy is one possibility. Co-Ownership of Property If you own property, you could choose to add a co-owner to the title or deed of the property. This person would become a joint tenant in legal parlance. To provide a simple example, let's assume that you own your home outright. You want your son to inherit your home after you pass away, so you add him to the title as a … [Read more...] about What Is Joint Tenancy?

In the United States, there are taxes that can be imposed on large asset transfers. We have a federal estate tax, and the tax carries a rather hefty 40 percent maximum rate. The reason why we say that the tax is applicable on large asset transfers only is because there is an estate tax exclusion. This exclusion stands at $5.43 million in 2015. If the value of your estate is less than the amount of this exclusion, it would not be subject to the estate tax. In addition to the federal estate … [Read more...] about What Is the Annual Gift Tax Exclusion?