Who are Trustees, and What Do They Do?
March 02, 2017Name a Trustee you Say? Trustees are those individuals or entities named in a trust agreement to administer the trust. Trustees are required to manage and invest trust property. They also distribute the trust property to certain individuals (the beneficiaries) based upon the instructions contained in the trust. Trusts often last for years or even… Read more »
I’ve Been Told That Even if I Plan with a Revocable Living Trust, I’ll Still Need Something Called a Pour-Over Will. What is That?
February 28, 2017Questions about Revocable Living Trust I’ve Been Told That Even if I Plan with a Revocable Living Trust, I’ll Still Need a Pour-Over Will. The Pour-Over Will serves as a safeguard in case an asset gets left outside of your trust. It’s not uncommon to find that in the process of funding a trust (changing… Read more »
One of My Professional Advisor Says I don’t Need a Revocable Living Trust
February 24, 2017My Professional Advisor Says I don’t Need a Revocable Living Trust It’s not uncommon for a professional advisor such as attorney, financial and insurance advisor or CPA to think of estate planning as pertaining only to finances, avoiding probate, or reducing taxes. That is the focus of the training most have experienced. Therefore if you… Read more »
Who Needs a Revocable Living Trust?
February 22, 2017Do I Need a Revocable Living Trust? When revocable living trusts first became popular in the 1980s, most thought that they were only for the wealthy. Over time, trusts have become a popular planning tool for any size estate. Revocable living trusts are amazingly flexible legal tools that can help the creator of the trust—referred… Read more »
What is the Difference Between a Will and a Trust?
February 20, 2017I Don’t Know the Difference Between a Will and a Trust Learn the pros and cons of wills and trusts. A will is a document that tells the world where you want your assets to go when you die. It becomes effective only upon death. Unfortunately, your will controls only the property you own in… Read more »
What is the Generation Skipping Transfer Tax?
February 13, 2017What Is the Generation Skipping Transfer Tax (GSTT)? Estate planning can help you pass on assets to your heirs while potentially minimizing taxes. When gifting assets, it’s important to consider when and how the generation-skipping tax transfer (GSTT) may apply. Also called the generation-skipping tax, this federal tax can apply when a grandparent leaves assets… Read more »
Why is it Better to Pay Gift Taxes Rather Than Estate Taxes?
February 09, 2017You may hear an advisor refer to gift and estate taxes as being “tax exclusive” or “tax inclusive,” respectively. This terminology is sometimes confusing, and may be better understood by saying that a gift is tax exclusive, because the taxes due are not subtracted from the gifted amount going to the heirs, but are paid… Read more »
Reduce my Federal Estate Taxes to Zero?
February 07, 2017Yes, the estate tax is a voluntary tax! You can choose to pay it by not planning ahead, or you can reduce or even eliminate it with planning. The easiest and simplest way to eliminate the Federal estate taxes at death is to not allow your estate to be valued more than the Federal Estate… Read more »
What is the “Unlimited Marital Deduction?”
February 03, 2017Explain Unlimited Marital Deduction for Me The definition of unlimited marital deduction is a provision in the U.S. Federal Estate and Gift Tax Law that allows an individual to transfer an unrestricted amount of assets to their spouse at any time, including at the death of the transferor, free from tax. The unlimited marital deduction… Read more »
You Mean There are State Death Taxes Too?
February 01, 2017Are There State Death Taxes? That depends. Some states have a separate death tax and some do not. Historically, for those states that have a state death tax, the tax is either independent of the federal estate tax system or tied to the federal estate tax system. In those states that have an independent death… Read more »