What happens if you die without an estate plan?
If you’re the late rock star Prince, you lose half of your estate to state and federal estate taxes. It appears the government will be dancing to Prince’s “1999” all the way to the bank.According to news reports, when Prince died in April of 2016, he had no will and no other estate plan in place. As a result, almost $100 million of his estimated $200 million estate could wind up in the hands of the tax man.
A carefully crafted estate plan may have avoided the multi-million dollar battle over Michael Jackson’s estate currently taking place in the U.S. Tax Court. By disposing of his assets primarily by Will, his estate has been subjected to a myriad of red tape as well as the scrutiny of the Internal Revenue Service. Maybe, as his attorneys have argued, his…
It is not that uncommon for relatively younger children to receive large sums of money and property from their parents’ estate. This may or may not be a good idea in some situations. If both parents or a surviving parent dies, what kind of restrictions should be placed on an inheritance? The question is more acute if a child…
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…
Pre-planning protects both parties in a second marriage. Love can be a many-splendored thing, but when it results in a second marriage, careful estate-planning becomes a necessity. Second marriages are a blending process, often of children and assets. Prior to marriage, it is important to discuss your intentions concerning those assets and your heirs. While it is hoped that newlyweds…
In California, a document called a small estate affidavit may be used to transfer an estate’s assets to the proper beneficiaries without having to open a formal probate proceeding with the court. To use a small estate affidavit, the estate must meet the following basic legal requirements: The basic requirements to use a small estate affidavit are the estate’s probate…
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…
No one likes to think of this subject but the reality is that anyone at any age can be struck down by injury or illness. Two of the fastest rising maladies in the United States are dementia and stroke. Incapacity may be either temporary or permanent. The issue then is who will step into a person’s shoes and manage their…
Documents to Review After Divorce or in Anticipation of Divorce Going through a divorce can be emotional and overwhelming. However, if you are recently divorced or are considering a divorce, do not forget to review your estate plan to determine if you need to make changes to ensure your estate is protected from an ex-spouse and the plan reflects your…