Estate Planning Archives - Page 7 of 22

Some bequests that ‘look’ equal really aren’t

09/29/2015 by Report from Counsel

When you’re deciding how to divide your assets among multiple heirs, it’s very important to consider who will pay your estate’s debts out of their share. Two bequests that look equal in theory might be very different in practice once debts are taken into account. Generally, when a person dies, his or her outstanding debts … Read more

Supreme Court alters estate planning for gay couples

09/29/2015 by Report from Counsel

The Supreme Court’s recent ruling extending same-sex marriage throughout the U.S. has changed the estate planning landscape for gay couples.

The biggest change, of course, will be for couples living in states that didn’t recognize same-sex marriage before the decision. But the ruling is also important for couples in states that previously permitted same-sex marriage, because in the past, their estate planning had to take into account the fact that they might travel, own property, or retire in a state that didn’t recognize their union. This is no longer true.

For example, in the past, couples who resided in a “non-marriage” state couldn’t take advantage of the federal law that says a person can leave an unlimited amount of assets to a spouse in a will without being subject to the federal estate tax. And they couldn’t take advantage of another provision that allows one spouse to “inherit” the other’s unused estate tax exemption.

‘Longevity insurance’ sales are growing fast

08/17/202009/29/2015 by Report from Counsel

There’s a new product on the market called “longevity insurance.” This is really just a new name for an old concept, the deferred annuity. Unlike most annuities, which are purchased with a lump sum and begin paying out soon afterward, these policies typically don’t begin paying anything until some 10 or 20 years after you … Read more

Some bequests that ‘look’ equal really aren’t

09/29/2015 by Report from Counsel

When you’re writing a will and deciding how to divide your assets among multiple heirs, it’s very important to consider who will pay your estate’s debts out of their share. Two bequests that look equal in theory might be very different in practice once debts are taken into account. Generally, when a person dies, his … Read more

Converting to a Roth IRA can help with estate planning

08/17/202007/23/2015 by Report from Counsel

Converting a traditional IRA into a Roth IRA has many advantages and disadvantages, but what many people don’t realize is that it can provide some estate planning benefits.

If you convert to a Roth, you’ll have to pay income tax on the value of the IRA right away – just as if you received the entire amount as income. On the other hand, all future withdrawals will be tax-free, and there are no minimum required distributions during your lifetime.

Converting may make sense if

New laws may clarify estate planning for online assets

08/17/202007/23/2015 by Report from Counsel

Including online assets in estate planning is a new thing, and the legal rules aren’t always entirely clear. But a number of states are now considering laws that will make things easier.

For instance, Delaware recently became the first state to pass a comprehensive law addressing what happens to someone’s online assets when they pass away. And 13 other states are currently considering such laws, so it’s likely the legal landscape will change dramatically in the next few years. The bill being considered by Illinois’ legislature is the Uniform Fiduciary Access to Digital Assets Act, SB1376.

The Delaware law says that if a person dies, his or her executor can take control over the person’s online assets and distribute them to heirs. The same is true for trustees and other fiduciaries. This will be allowed unless the person specifically states otherwise in his or her will.

How to avoid common trust mistakes

07/23/201507/23/2015 by Report from Counsel

Trusts can be the linchpin of a solid estate plan. But it’s important to remember that you can’t just set up a trust and forget about it. It’s a good idea to periodically review how your trusts are working, to make sure you and your family are getting the full benefit of them. Not doing so can be costly!

Here are just a few things to consider, and some common mistakes to avoid:

Some older wills can cause unnecessary capital gains tax

08/17/202005/12/2015 by Report from Counsel

As a result of changes in the law, a lot of wills that were drafted even relatively recently may now result in a capital gains tax issue, and if you have such a will, you might want to consider revising it to save taxes.
Here’s the background: When a person dies, he or she can leave an unlimited amount of assets to a spouse without incurring the federal estate tax. If assets are left to anyone else, including children, then everything above the “exemption amount” is subject to a very significant tax.
In the past, the exemption amount was not very large. As recently as 2001, it was only $675,000. Back in 2008, it was $2 million.

Should you tell your children about your estate planning?

05/12/2015 by Report from Counsel

Often, one of the hardest decisions people make in the estate planning process is how much (and when) to tell their children or other heirs about their plans.

There’s no single right answer for everybody; what to do depends on the nature of your planning and your family circumstances. But it’s worth giving the issue some consideration.

Parents disagree as to when children can handle an inheritance

05/12/2015 by Report from Counsel

If you’re wondering at what age your children or grandchildren will be old enough to handle an inheritance, well, you’re not alone. U.S. Trust recently conducted a survey of wealthy Americans (with assets of $3 million or more) and asked them that precise question. The issue is important because many parents leave assets in a … Read more