Charitable bequests are a common part of estate planning. But before you decide to leave money to an organization either be a bequest in your Will or a Charitable Remainder Trust, it's important to do your homework and make sure your favorite "charity" is really a legal charity. The Internal Revenue Service recognizes public charities and private foundations. Your estate can deduct the value of contributions to either type of organization on any federal or state estate tax return that is due. … [Read more...] about Checking Out Charitable Beneficiaries
Seven Estate Planning Tasks for Your IRA
Did you know that your retirement account avoids probate? Since there is a beneficiary form associated with this account, it is considered non-probate property, and will get to your beneficiary more quickly than probate property. Just like your other estate planning documents, your retirement account needs to be properly set up and maintained in order to reap the benefits, and you need to: 1. Make sure you have named a primary beneficiary along with a secondary beneficiary (some forms … [Read more...] about Seven Estate Planning Tasks for Your IRA
DIY Estate Planning Mistakes
If you choose to go it alone in estate planning, you run the risk of making at least one of these estate-planning mistakes: Naming your estate as a beneficiary When it comes to life insurance, qualified retirement plans and annuities, you can name one or more persons to be the recipients of the death benefit. That way you can bypass estate administration and probate court. But many people name their estate as a beneficiary, perhaps thinking that they will sort it all out later and then … [Read more...] about DIY Estate Planning Mistakes
What are Statutory Wills?
When you create a will, you choose who will receive your property, you select someone you trust to act as the "personal representative” or "executor,” and if you have children under 18 years of age, you appoint the person you want to be their legal guardian if you die. Creating a will is the cornerstone of an estate plan, but can this be done using a statutory will? A statutory will is a “fill-in-the-blank” form that is simple to complete, inexpensive to prepare, but very limited in its use. A … [Read more...] about What are Statutory Wills?
Ten Warning Signs of Elder Financial Abuse
According to the National Center on Elder Abuse, elder financial abuse or exploitation impacts over 2,000,000 Americans each year, and it is one of the fastest growing crimes committed against persons age 65 and older. If this abuse continues, this situation will grow significantly as the baby boomers begin reaching their senior years. Seniors, family member and caregivers should be on the lookout for these signs: 1. Sudden changes in a senior’s bank account or banking practices, particularly … [Read more...] about Ten Warning Signs of Elder Financial Abuse
Can You Revoke a Durable Power of Attorney?
A durable power of attorney is one of cornerstones of estate planning. It is critical that a trusted individual or entity be named to make financial decisions on your behalf should you become unable make these decisions on your own. Since this is such an important decision, it is also important to understand that you do have the right to revoke the power of attorney at any time, and execute a new document to change your 'agent.' To revoke a power of attorney, you should put it in writing, it is … [Read more...] about Can You Revoke a Durable Power of Attorney?
Three Estate Planning Tools to Avoid Guardianship
Guardianship is a court proceeding in which a surrogate decision-maker is appointed to make either personal and/or financial decisions for an adult that lacks the capacity to make these decisions on their own. It is often used as the last resort in helping an elderly loved one who can no longer handle their own affairs. There are no winners when it comes to guardianship cases, and it is in everyone’s best interest to take steps to avoid the possibility of a court-ordered guardianship in the … [Read more...] about Three Estate Planning Tools to Avoid Guardianship
Trusting a Professional Trustee
A trust can be a powerful estate planning tool, and you need to make several decisions when creating a trust, including choosing a Trustee to manage the property held by a trust. But a Trustee does not necessarily have to be a family member or a trusted friend. To review how a trust works: When you create a trust you transfer assets such as a real estate, stock or money to the trust. These assets are then managed for the benefit of the Beneficiaries by a Trustee. While a Grantor, the … [Read more...] about Trusting a Professional Trustee
Transferring Property Without Probate
Many estate planning tools are set up to allow property to avoid probate. Why? Probate Court can not only tie up property for months, even years, but it can rack up fees and costs as well. Property that avoids probate is called non-probate property, and it generally falls into three different categories: Transfers by Title: Assets transferred by title include property owned in joint tenancy with the right of survivorship, such as a house that is jointly owned by a married couple. It is … [Read more...] about Transferring Property Without Probate
Estate Planning and the Rights of Survivorship
A common phrase used in estate planning is the ‘rights of survivorship,’ particularly when it comes to owning real estate. But do you know what this phrase actually means in plain English? The ‘rights of survivorship’ is the ownership of property by two or more people in which the survivors automatically gain ownership of another’s interest upon their death. In the case of more than one survivor, the decendent's share is divided among the survivors. For example – Harry and Sally are … [Read more...] about Estate Planning and the Rights of Survivorship
