In some cases, the home may pass by will to children and other heirs, incurring burdensome estate taxes. In other situations, it may become a source of conflict or become part of a forced sale to settle debts or taxes, and in some cases it may pass uneventfully tax-free to the intended heirs. When transferring a vacation home to your heirs,…
The proceeds of a life insurance policy are included in the insured’s taxable estate at death. If the decedent’s taxable estate exceeds the federal estate exemption (currently $5.45 million), estate tax is due. For some, ownership of a large life insurance policy may trigger estate tax liability at death. An irrevocable life insurance trust can be a useful estate…
After a long and happy life, Grandpa Watkins moves on to the great beyond. He leaves a Last Will and Testament, duly signed and witnessed, in which he expresses his desire to have his assets divided equally among his two sons and two daughters. Unfortunately, several years prior to Grandpa Watkins’ death, his eldest daughter, Lilabeth, was killed in a…
It’s the classic movie scene: Three people are trapped underground with little hope for a timely rescue. The first curls up into a ball and prepares for death. The second starts talking about missed opportunities. The third takes out a small notebook and writes a will. When their bodies are discovered, the third person’s will is also found. But is…
Gifting to your heirs before you die has a huge tax savings for you, and possibly timing for your heirs. Gifts of money or property allow you to provide your heirs with funds or property when it will have the most significant impact and it is tax-free. Whether providing a down-payment on a home, sending your grandchildren to college, or…
Estate planning is a critical necessity when someone is diagnosed with a terminal illness: It is vital that the proverbial “house” be put in order. Timing quickly becomes a concern. At a certain stage in a terminal illness, it may become difficult to ascertain desires, or identify the information required, to carry out effective estate planning. In addition, mental competency,…
Chances are you have read or been told by someone that you should ‘avoid probate at all costs.’ This is especially true if you have a relatively sizable estate, which includes at least one house and some savings and/or investments in a portfolio. If one does not have a will, probate is the court administrative process whereby there is judicial…
John Lennon once wrote: “Life is what happens when you are busy making other plans.” This is a profound thought and it certainly applies to the areas of estate planning, unexpected death, a life-altering accident, unanticipated sickness, home care and assisted living. Regrettably, this lyric applies to Prince, the mega music star who recently died unexpectedly at the age of…
When we think of estate planning, most of the time we think in the context of spouses and children. In fact, most people do wind up bequeathing everything to their spouse and their kids. At the same time, power of attorney and advance health care directives are usually delegated to spouses and children. Yet, there are many successful persons who…