The Internal Revenue Code assesses a tax (gift or estate) on the transfer of money or property from one person to another during life or at death, with some exceptions. If you own accounts or property that are worth a lot of money and you expect them to continue to increase in value, you may want to transfer them out …
Most of us know the story of Snow White and the Seven Dwarfs, where Snow White’s relationship with her stepmother takes center stage. After his wife’s death, the king remarries, hoping to provide a motherly figure for his daughter. Life is peaceful until the king dies, revealing the Queen’s darker nature. Threatened by Snow White’s beauty, the Queen arranges to …
Sitting down to create or update your estate plan can be overwhelming. Crucial to a successful plan is your ability to address two major questions: Who will get your stuff when you die, and how do you want those individuals or charities to receive that stuff? Ways to Give Away Your Money and Property Outright One way you can give …
Family members with special needs may require assistance throughout their lives. If you want to ensure that a loved one with a disability is taken care of after you are gone, you can help manage resources for them by using a third-party special needs trust (SNT). Also known as a supplemental needs trust, a third-party SNT is funded with assets …
Many people think estate planning is just about filling out forms to convey wishes about finances, health, and assets after death. While these documents may seem simple, they are crucial legal tools to manage affairs during incapacity or death. Relying on nonlawyers for estate planning or legal advice can be risky. Some professionals, though well-meaning, may cross into legal territory …
When creating a last will and testament (commonly known as a will), one of your most important considerations is who to choose to serve as the executor (also called a personal representative) of your estate. As the name implies, the role of the executor is to execute the instructions that you provide in your will. You may give your chosen …
As a parent, you are responsible for the care of your minor child. In most circumstances, this means getting them up for school, making sure they are fed, and providing for other basic needs. However, what would happen if you and your child’s other parent were unable to care for them? It is important to note that if something were …
How much stuff is too much? Most Americans would probably admit that they own too many things. From clothes to electronics to sports equipment to collectibles, the typical US house is stuffed to the brim with items of questionable utility. On occasion, we may commit to decluttering, only to get overwhelmed or distracted. Meanwhile, the stuff keeps piling up. But …
Many people believe that estate planning is only about planning for their death. But planning for what happens after you die is only one piece of the estate-planning puzzle. It is just as important to plan for what happens if you become unable to manage your own financial or medical affairs while you are alive (in other words, if you …
Comprehensive estate planning involves more than just planning for your legacy after your death, avoiding probate, and reducing taxes. Good estate planning also includes planning for incapacity. An incapacity plan will appoint people to make legal, financial, and medical decisions for you if you are alive but unable to make those decisions for yourself (in other words, if you are …
Death is a personal and private affair that affects the deceased’s close family and friends. However, there is at least one aspect of death that may require state oversight: probate. Probate is the court-supervised process of either (a) carrying out the instructions laid out in the deceased’s will or (b) applying state law to distribute a deceased’s accounts and property …
The first private pension plan in the United States was established in the late 1800s. Through 1980, nearly 40 percent of Americans were covered by traditional employer-funded pensions. But employer-provided retirement plans have now largely shifted to retirement savings vehicles like 401(k) plans and Individual Retirement Accounts (IRAs). These vehicles place most of the savings onus on the employee. Pensions …