Preplanning avoids disputes over gifts and loans
After Marilyn Walker’s untimely death, her family solemnly gathered for the reading of her will. According to her attorney, Marilyn divided her estate equally among her four children. Everything seemed cut and dried, until Marilyn’s eldest daughter, Kate, spoke up.
Is Your Safe Deposit Box Accessible Upon Your Death?
Harry Williamson planned well for his death. After consulting with his attorney, he prepared and executed a comprehensive estate plan, including a Last Will and Testament, a Living Trust, an Advance Healthcare Directive, a HIPAA release, and powers of attorney for healthcare and finances.
When Minnie Wilson’s father died at the age of 96, she immediately listed his home for sale. Although her father’s estate had not yet been probated, Minnie knew she and her sister, Linda had inherited the house. He stated that in his Last Will and Testament. Since neither sister wanted the home, Minnie thought she would help the process to…
No Will? No Way!
Dying without a Will is a bit like playing Russian roulette. It leaves the distribution of your assets to chance.
A Last Will and Testament not only declares your final wishes as to the distribution of your property, it ensures that those wishes are carried out properly. Upon death, a Will is filed with the local probate court, and it is that court’s job to oversee the distribution of your assets as set forth in that document. When you die without a Will, however, the state determines how your assets will be distributed and that distribution is made by a preset formula. Your desires no longer matter.
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…
I do a lot of presentations before groups and one of the most common questions I am asked is “How often do I need to update my estate plan?” As with just about any question asked of an attorney, the answer is, “It depends.” It depends on both changes in the law, both federal and state, and it depends on…
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…
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,…
Why do people avoid estate planning? A recent study found that some estate holders believe they don’t need an estate plan. They think a spouse or their children will automatically receive any assets they have. Others claim estate matters are too complicated to deal with or estate planning is too expensive and others say it simply takes too much time.…