- What a Pet Trust Is and How It Works
When it comes to pets and estates, there are two main rules to understand. First – and sadly for the eccentric among us – you cannot leave money to your pet. The law says that animals are property, and one piece… read more…
- How the Rule Against Perpetuities Works
Property law can be complex and arcane, even for lawyers and judges. The rule against perpetuities is an example of how older property laws can influence how families transfer and inherit property rights. Well-meaning grantors create wills defining their wishes… read more…
- Using Survivorship Life Insurance in Estate Planning
Survivorship life insurance, also called second-to-die insurance, may be attractive for married couples with a high net worth. When the second policyholder passes away, the policy pays out a death benefit. So how are survivorship policies helpful in estate planning?… read more…
- Crummey Power: Gift Tax Exclusion
Establishing a Crummey trust is something you might consider if you’d like to leave assets to your heirs while avoiding gift taxes. One unique provision of this type of trust is the Crummey power, which allows the trust beneficiaries a… read more…
- Crummey Letter: Trust Definition and Requirements
Crummey trusts can be a useful estate planning tool for high-net-worth individuals who are hoping to minimize gift and estate taxes. The Crummey power confers the right to withdraw assets from the trust to its beneficiaries, though this power isn’t… read more…
- Guide to Roth IRAs and Estate Taxes
Tax planning for your retirement accounts is an important part of setting your beneficiaries up to maximize the benefit of what you leave behind after you die. If you have a Roth IRA, you can effectively avoid estate tax issues… read more…
- Minor Child as IRA Beneficiary: Requirements
If you want to leave your individual retirement account (IRA) to your grandchildren, you should know that minors can’t inherit an IRA directly. Instead, a custodian should be appointed until the minor is of legal age. Here are some things… read more…
- Estates With Charities as Beneficiaries
An estate plan indicates what you want to do with your assets after you are gone. Depending on your goals, you may want to leave some funds or other assets to charity. It’s possible to create estate plans with charities as beneficiaries. A financial advisor could help you include charitable donations as part of your estate… read more…
- How to Calculate RMD in Year of Death
If an account holder passes away before taking their required minimum distribution (RMD) for the year, the responsibility shifts to the beneficiary. The IRS requires that the full RMD be withdrawn to avoid penalties, using the deceased’s age and prior-year account balance to determine the amount. Whether you’re a spouse, child or other designated heir,… read more…
- Using Philanthropic Giving in Your Estate Plan
Philanthropic giving allows you to make an impact by donating to organizations that reflect your values and support your causes. If you want to include philanthropic giving in your estate plan, there are many common ways. Let’s break down how you can do it. A financial advisor can help you incorporate charitable giving into your estate plan.… read more…
- Donor-Advised Fund Tax Deduction Guide
A donor-advised fund is an account that lets the donor direct how and where to distribute assets in the fund. Donor-advised funds can simplify making charitable contributions to favorite causes and also provide the donor with valuable tax deductions. Gifts made to donor-advised funds can be deducted from current income, subject to limitations. Cash gifts… read more…
- Donor-Advised Funds vs. Private Foundations
Donor-advised funds and private foundations offer two ways to financially support causes while gaining valuable tax deductions. Each permits donations of non-cash donations that may include securities, IRA assets, real estate, annuities and life insurance. Donor-advised funds can allow for larger tax-deductible contributions and tax-free growth of invested funds. A financial advisor can help you… read more…
- Intentionally Defective Grantor Trusts and Taxes
An intentionally defective grantor trust, or IDGT, is a way of shifting tax burdens for very wealthy households. With this structure, you can create a trust that leaves wealth to your heirs while minimizing gift, estate and income tax liability. Find out how the IDGT works and what tax advantages may exist if you decide… read more…
- What Is a Qualified Perpetual Trust?
Trusts can be a useful tool in estate planning when you want to leave specific instructions about how your assets should be managed during your lifetime and after you pass away. One type of trust, the qualified perpetual trust, can be used to pass assets down to your beneficiaries decade after decade. Also known as… read more…
- What Does a Trust Protector Do?
Establishing a trust is something you might consider if you’d like to take estate planning beyond a simple will. Naming a trustee is an important part of the trust creation process but you might find it helpful or necessary to name a trust protector as well. Trust protectors serve as intermediaries between the trustee and… read more…
- How Do Offshore Trusts Work?
An offshore trust is a tool used for asset protection and estate planning that works by transferring assets into the control of a legal entity based in another country. Offshore trusts are irrevocable, so trust owners can’t reclaim ownership of transferred assets. They are also complicated and costly. However, for people with greater liability concerns,… read more…
- Estate Planning vs. Will: What’s the Difference?
A lot of people think that estate planning and writing a will are the same, but one is just part of the other. Simply put, an estate plan is a broader plan of action for your assets that may apply during your life as well as after your death. A will, on the other hand,… read more…
- Revocable Living Trust vs. Will: Key Differences
Revocable living trusts have become an increasingly popular tool in estate planning. They’re often used by households to avoid the probate process, which in some estates can save heirs both time and money. However, while trusts are a popular option, often a will is the better one. That’s particularly true for simple or relatively small estates.… read more…
- Does a Living Trust Need to File a Tax Return?
A living trust is a common solution for many people with estate planning needs. However, few people know about its tax-filing requirements. Generally, any trust with at least $600 in annual income must file a federal return. But for a… read more…
- Is an EIN Required for a Trust After Death?
Losing a family member can be an emotional and trying experience for everyone affected. Unfortunately, tax problems brought on by a trust can sometimes be an added stressor. Because grantors don’t always acquire an employer identification number (EIN) for their trusts, their heirs or beneficiaries may have to do so after the fact. If the grantor… read more…
- How to Protect Assets From Nursing Home Costs
As healthcare costs continue to rise, many individuals and families are seeking effective strategies to protect their assets. Knowing how to safeguard your financial resources is crucial for ensuring peace of mind and preserving your legacy for future generations. Below, we’ll explore various methods to protect assets from nursing home costs, including legal tools such… read more…
- How to Protect Your Assets From Lawsuits
As you build wealth, you increasingly become a target for lawsuits. Lawyers often see wealthy investors as “deep pockets” that can financially right the wrongs that a plaintiff feels they’ve suffered. While you can’t stop someone from suing you, you… read more…
- How Does a Bare Trust Work?
Parents and grandparents looking for a way to pass assets to their beneficiaries should consider a bare trust, also known as a naked trust or simple trust. It is one of the simplest forms of a trust but can still… read more…
- Are Estate Planning Costs Tax-Deductible?
Estate planning can be difficult because there are so many tax rules that could cost you a lot of money long-term if you don’t know what to deduct. This article will discuss reducing estate planning costs through deducting the expenses when you file taxes and give you general tips on saving money in the estate… read more…
- Asset Protection If a Spouse Goes into a Nursing Home
Many people plan carefully for their financial needs in retirement, but often overlook how a disability could impact their situation. Unfortunately, disability is one of the leading reasons individuals require nursing home care. Understanding Medicaid laws and exploring asset protection strategies can help you learn how to protect assets if a spouse goes into a… read more…