What are the first steps in settling a loved one’s estate? Whether the foundation of your loved one’s estate plan was a will or a trust, you’ll need to schedule an appointment with a probate attorney relatively soon after the death – within a few weeks, if possible. And, you’ll want to gather the following paperwork to take with you to the appointment. Estate Planning Documents: If there’s a will, you’ll need the original, plus any original codicils. If there’s a trust, a copy of the trust … [Read more...] about Essential Paperwork for Settling an Estate
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It’s Official: The Return of the Estate Tax
Congress has passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 ,and on December 17, President Obama signed it into law. Among the many things the new law does is give us temporary certainty as to the status of the federal estate and gift taxes. Here’s a brief rundown: As for the estate tax, the maximum rate is 35%, and there’s a $5 million individual exemption. Any exemption that is unused by the estate of one deceased spouse may be used by the … [Read more...] about It’s Official: The Return of the Estate Tax
What to Do With Your Old Will
Probably the second-best estate planning advice you’ll ever receive is to make sure you keep your plan updated to reflect changes in your family, your finances, and the law. (The best advice, of course, is simply to make an effective estate plan in the first place.) But, this brings to mind the question, once you’ve updated your estate plan by making a new Will, what do you do with your old one? The answer is to destroy it. The easiest way to do this is simply run it through the … [Read more...] about What to Do With Your Old Will
The New Gift Tax Law
Back in December, the law that’s become known as the Tax Relief Act of 2010 (TRA 2010) was signed. In addition to a new estate tax threshold, not to mention quite a list of other provisions, TRA 2010 made changes to the federal gift tax law. Here’s a quick look: There are still two types of exemptions when it comes to the tax: the annual gift tax exemption, and the lifetime exclusion. They work together in determining whether you have to report gifts you’ve made during a particular year, as … [Read more...] about The New Gift Tax Law
Challenging a Will: Lack of Capacity
How do you know if someone is of sound mind when he or she makes a Will? And, if you don’t think that a loved one was of sound mind when his or her Will was made, can you challenge the Will? The legal term for being of sound mind is “testamentary capacity”, and there are a number of elements that go into having testamentary capacity. A person can challenge a Will on the basis of lack of testamentary capacity. In order to do this, he or she has to prove that one of these elements was missing … [Read more...] about Challenging a Will: Lack of Capacity
Blended Family? Make Sure No One is Left Out in the Cold
The blended family has become the most common family arrangement in America, and if you’re a member of one of these families, you know firsthand how complicated the family dynamics can get. When it comes to estate planning, it can be a challenge to make sure you’ve protected everyone’s interests and taken care of everyone’s needs. Despite the best of intentions, unless you have the proper guidance it can be easy to unintentionally disinherit a child or step-child. Here are two scenarios: 1) … [Read more...] about Blended Family? Make Sure No One is Left Out in the Cold
Q&A: Caregiver Agreements
An increasing number of adult children – more than 2 million here in Texas - are caring for their elderly parents and, while few of them would complain about helping their parents in this way, the costs to these caregivers can be significant. Many caregivers reduce their employment hours and experience pay cuts in addition to expending money out-of-pocket to meet their parents’ needs. On the other side of this scenario are elderly parents who recognize the impact of the services their care … [Read more...] about Q&A: Caregiver Agreements
Q&A: Caregiver Agreements
An increasing number of adult children – more than 2 million here in Texas - are caring for their elderly parents and, while few of them would complain about helping their parents in this way, the costs to these caregivers can be significant. Many caregivers reduce their employment hours and experience pay cuts in addition to expending money out-of-pocket to meet their parents’ needs. On the other side of this scenario are elderly parents who recognize the impact of the services their care … [Read more...] about Q&A: Caregiver Agreements
Buying or Selling a Business? Time to Update Your Estate Plan
When you’re purchasing or selling a business, it’s easy to be overwhelmed by the details of the transaction and the transition process, and forget the impact that the sale or purchase has on your overall financial picture as well as your estate planning needs. The purchase or sale of a business always calls for a review of your estate plan, and may require some significant updates. Buying a Business When you’re just taking over a new business, it can be hard to look beyond your immediate … [Read more...] about Buying or Selling a Business? Time to Update Your Estate Plan
Who Will Get Your Personal Possessions When You Pass Away?
When you’re making an estate plan, it’s easy to become so focused on making sure your large assets go to the appropriate individuals that you don’t pay enough attention to what should happen to your personal possessions. After all, your household “stuff” isn’t that valuable, so there’s no real need to address it as thoroughly as you do your big, financial assets, right? Wrong! Even though your personal possessions might not have much monetary value, certain items are likely to have an immense … [Read more...] about Who Will Get Your Personal Possessions When You Pass Away?
