On average, women tend to suffer the consequences that come with lack of estate planning – and reap the benefits of a good plan – more than men do. This is because, statistically speaking, women tend to live longer than men. Plus, the average married woman is younger than her husband. Taken together, these statistics mean that women are much more likely than men to be widowed. As a recent Forbes article points out, even though estate planning is crucial to protect women’s finances and preserve … [Read more...] about Estate Planning is Essential for Women
Do You Have a Lawyer?
Many people only seek out the services of a lawyer if something negative has happened in their lives – they’ve been arrested, or they’re going through a divorce, or someone close to them has died, and it’s time to probate the estate. Even people who find a lawyer for positive reasons – like making a will – see it as just a short-term transaction: the lawyer draws up a will, the client signs it and breathes a sigh of relief that everything is in order, and they may never see each other … [Read more...] about Do You Have a Lawyer?
Financial Planners: Fee-Only vs. Fee-Based
When you’re choosing a financial planner, you have a lot of things to consider: what type of education and experience does your advisor have, what type of certification does he or she carry, and – far from the least of your concerns – how is your financial advisor paid? Fee-Only Financial Planners When a fee-only financial planner performs services for you, you are the one paying the bill. He doesn’t get a commission from a mutual fund company, a brokerage house, or any other source. You’ll … [Read more...] about Financial Planners: Fee-Only vs. Fee-Based
An Unusual Example of the Need for Estate Planning
Karel Fortyn was 52 when he died of a stroke in early May. He was a life-long lover of reptiles, and he’d built a business around them: Fortyn was the owner of the Seaway Serpentarium in Ontario, Canada. The Serpentarium, operated out of Fortyn’s home, boasted a collection of more than 200 snakes and other reptiles – many of them rare species. Aside from his collection of reptiles, Fortyn left behind a former common-law wife and a brother, but, unfortunately, no Will. Now, his brother and his … [Read more...] about An Unusual Example of the Need for Estate Planning
Are You Responsible for Your Deceased Parent’s Debts?
When your mom or dad passes away, there are a million details – large and small – that demand your attention. One of the issues that often arises is who has a legal obligation to take care of a deceased parent’s final debts. The bottom line: unless you signed up to be a joint debt-holder, you, as your parent’s child, are not individually responsible for paying their debts. Here’s how it actually works: When the Assets Outweigh the Debts The assets left behind by a deceased person are … [Read more...] about Are You Responsible for Your Deceased Parent’s Debts?
When is a Gift Taxable?
Not every gift has to be reported to the IRS, nor does every gift trigger a tax; but it’s important to understand when the IRS needs to know about a gift. Here’s a brief summary of the situations in which the federal gift tax applies: Who Receives the Gift, and How Much is it Worth? For gift tax purposes, the IRS looks at gifts to a spouse differently than it does gifts to a non-spouse. Assuming your husband or wife is a United States citizen, the unlimited marital deduction applies, and … [Read more...] about When is a Gift Taxable?
Three Advantages of a Revocable Living Trust
If you’re considering whether to establish a will or a revocable living trust, you might want to consider these three advantages offered by a living trust: 1. A Living Trust Can Help You Avoid Probate. When you have a revocable living trust, any property that is titled in the name of the trust at the time of your death is distributing according to the terms of the trust – no probate necessary. On the other hand, if you don’t have a trust, or if there’s property in your name that’s been … [Read more...] about Three Advantages of a Revocable Living Trust
Is Your Estate Plan Complete?
Making sure you have a truly effective estate plan in place requires a good bit of attention to detail. In a recent Investing Daily post, Bob Carlson points out some important planning issues that tend to be overlooked. For example: Lack of Liquidity. While an estate is being settled, it incurs operating expenses. If you don’t provide a plan for covering these expenses, your heirs could be shortchanged. Many estates are full of non-liquid assets, but they tend to run short on cash. If this … [Read more...] about Is Your Estate Plan Complete?
Making Changes to Your Revocable Living Trust
A few years ago, Bob and Mary established a revocable living trust. They’ve been careful to transfer all the appropriate property into their trust, so they’re confident that their assets will be distributed according to the trust terms when they pass away. Trust Restatement So, what happens when they need to change the terms of their trust? Let’s say Bob and Mary’s only son recently won several million dollars in the lottery, and he has let them know he would prefer that they leave their … [Read more...] about Making Changes to Your Revocable Living Trust
The Gift Tax Doesn’t Always Apply
There are many everyday situations in which we give gifts that aren’t subject to the federal gift tax. On the other hand, there are quite a few situations where gifts are reportable to the IRS, and they may be taxable. It’s important to know the difference. So, what types of gifts are not subject to the gift tax? Gifts to a U.S. Citizen Spouse If your husband or wife is a United States citizen, then you can give him or her an unlimited amount of property, tax-free, regardless of value. If … [Read more...] about The Gift Tax Doesn’t Always Apply
