For many Americans, individual retirement accounts (IRAs) and other retirement plans and pensions often represent their most valuable assets. Along with the home, these retirement vehicles are the most likely assets to avoid consumption or loss of value over the course of the owner’s life. Unfortunately, many Americans often neglect to calculate their retirement account’s impact on their overall estate planning efforts – and that can lead to unexpected negative outcomes when they die. Unless you … [Read more...]
How Do You Transfer Assets Into a Living Trust?
Before you decide that you should use a last will as your estate planning vehicle of asset transfer, you should carefully evaluate the benefits that you would gain if you utilize a living trust instead.The first thing to understand about a living trust is the fact that it is revocable. You do not have to worry about losing access to the resources if you need to take them back, because you can revoke the trust entirely at any time. Plus, you can act as the trustee and the beneficiary. As a … [Read more...]
Three Compelling Reasons to Create an Estate Plan
People who are going through life without an estate plan are failing to fulfill a basic responsibility. If you aren't sure why you should put an estate plan in place, consider these three compelling facts.Your Family Would Suffer the ConsequencesMany people who fail to put an estate plan in place feel as though it is not necessary, because they are relatively young. In fact, you can look at it another way.Senior citizens are going to have adult children who are self-supporting in … [Read more...]
What Does the Executor of a Will Do?
If you use a last will to record your final wishes regarding the inheritances that your loved ones will be receiving, you nominate someone to handle the estate administration tasks after you die. This person is called the executor of a will.The estate executor has a number of different real world responsibilities. It is not just a ceremonial honor that you bestow upon someone that you love and respect.You may imagine the executor reading a will after the funeral, and the idea would be … [Read more...]
What Is the Value of an Irrevocable Trust?
There are numerous different types of trusts used in the field of estate planning. One basic distinction between them is the matter of revocation. You can revoke or dissolve some types of trusts, and you cannot revoke others.As the name would indicate, an irrevocable trust is a trust that cannot be dissolved. Once you convey assets into this type of trust, the decision is final. You cannot change your mind and take back the assets in the trust. Plus, you cannot change the terms of the trust … [Read more...]
Three Things to Think About When You Are Planning a Will
Planning a will can seem like the simplest way to proceed when you decide to put an estate plan in place. Under very simple circumstances, a will could be an acceptable choice, but you should understand all the facts before you make any final decisions.In this blog post, we will look at three things that you should think about when you are planning a will.1.) Beware of do-it-yourself estate planning notions.There are websites on the Internet that sell generic legal downloads and … [Read more...]
A Living Trust Can Satisfy Multiple Objectives
If you have never put an estate plan in place, in the back of your mind, you may feel as though you can create a last will at some point in time and you will be prepared. Indeed, many people equate estate planning to the creation of a will, and that's the end of it in their minds.This is a very shortsighted perspective, and you should understand all the facts before you decide that a last will is right for you. A living trust can satisfy many different objectives that a last will cannot … [Read more...]
Are Inheritances Subject to Regular Income Taxes?
There are questions that are naturally going to be asked about taxes when the subject of inheritance planning is being discussed. In this post we will look at them, and there is some good news to report, as well as some bad news.Regular Income TaxesSince the IRS wants you to report virtually every source of income, you may naturally assume that an inheritance would be taxable income. Surprisingly, you do not have to claim an inheritance when you file your annual tax returns. An inheritance … [Read more...]
Can My Son’s Creditors Take His Inheritance?
Children are naturally inquisitive, and they tend to ask a lot of questions. When you are a youngster and you engage your curious nature, your parents invariably answer many of the questions by saying "it all depends." This is the answer to many questions that people have about inheritance planning.In many cases, what would happen under various different circumstances will depend upon the actions that you take when you are involved in your inheritance planning efforts. With this in mind, let's … [Read more...]
Three Facts of Life That Can Impact Your Legacy
The legacy that you leave behind to your loved ones will be largely defined by the actions that you take along the way. If you have clear-cut objectives with regard to the things that you would like to be able to do for your loved ones, you have to take the right steps to make your legacy vision a reality.When you are thinking about the money that you will need for yourself when you are a senior citizen, you may envision the active years at first. Without question, you need to position … [Read more...]
