Once the ink is dry on your estate plan, you have some decisions to make about whom you’ll share your plan with – and how much detail you’ll go into. These are always very personal decisions, and what you decide to do will depend largely on your personal beliefs and the dynamics within your family. But, to the extent that you’re comfortable in doing so, it’s a good idea to discuss your estate plan with your family. And here’s why: It Gives You a Chance to Explain: Your estate plan won’t … [Read more...] about Who Needs to Know About Your Estate Plan?
What is Community Property?
Community property is one form of joint ownership of assets. Unlike other forms of joint ownership, like holding property as “Joint Tenants With Rights of Survivorship”, community property applies only to married couples. Not all states recognize community property, but Texas is one of the states that does. Community Property and Separate Property So, if you’re married and live in Texas, the property you own can generally be divided into community property or separate property. Assets that … [Read more...] about What is Community Property?
What is an Institutional Fiduciary?
An essential part of establishing your estate plan is nominating certain fiduciaries. These are people who will serve in positions of responsibility, such as Executor and Trustee, and will help ensure that the wishes contained in your estate plan are carried out. Many people simply name a spouse or an adult child to serve in one or more fiduciary roles, but this isn’t always the best option. Sometimes, you know from the start that your close family members will be too emotional to take on … [Read more...] about What is an Institutional Fiduciary?
Estate Planning Glossary: Fiduciary
As you make your estate plan and update it over the years, you’ll need to nominate several fiduciaries. What exactly is a fiduciary? It’s a person or an institution who will have the power to act on your behalf (or on behalf of your beneficiaries) in carrying out different elements of your estate plan. A fiduciary is responsible for acting in the interests of another person – and not necessarily in his or her own interests. Here are a few examples: Executor: An executor is the person … [Read more...] about Estate Planning Glossary: Fiduciary
Have You Funded Your Revocable Living Trust?
If you have, or are considering, a Revocable Living Trust, it’s important to know that having an effective trust is takes more than one step. It’s not enough to just have your attorney draw up your trust agreement and sign it – you also have to fund your trust. Funding your trust means transferring property out of your individual name, and into the name of the trustee. Any property that is owned by the trust falls under the terms of the trust and is within the control of the trustee. So, he … [Read more...] about Have You Funded Your Revocable Living Trust?
Is Your Parents’ Home As Safe As It Could Be?
As your mom and dad age, it may be harder for them to continue to function like they used to. Mobility declines, hearing and eyesight start to fail, and the risk of falling becomes a real worry. But most people want to avoid long-term care and continue to live independently for as long as possible. There are a few simple steps you can take to help your parents remain safe at home for as long as possible: First, take a good look at the lighting throughout the home. Making sure that the … [Read more...] about Is Your Parents’ Home As Safe As It Could Be?
Do You and Your Spouse Have “I Love You” Wills?
Many married couples have “I Love You” wills. These are simple wills that mirror each other and leave all your assets to the surviving spouse. While there’s nothing inherently wrong with this type of will, unless you’re in a very limited financial situation, “I Love You” wills may not be the best option for your family. Here are some of the things that this type of will just can’t do: Tax Planning. If your estate is large enough to be taxable – and starting in 2011, this just might include … [Read more...] about Do You and Your Spouse Have “I Love You” Wills?
Talking To Mom And Dad About The Estate Tax
Of all the uncomfortable things you have to talk to your parents about through the years, probably the toughest is their money. Yet, as your parents age, conversations about their money tend to become more and more necessary. This is especially true as the end of 2010 approaches, and the reality looms that – unless Congress makes a change – the estate tax will return next year with a only a $1 million exemption and a 55% top rate. As an adult child of aging parents, this unprecedented … [Read more...] about Talking To Mom And Dad About The Estate Tax
Should You Convert to a Roth?
This year marks a change in the law that governs who can and can’t convert a traditional IRA (or 401(k)) to a Roth IRA. In the past, there were income restrictions that prevented people above a certain income threshold from converting. This year, the income restrictions have been removed, and anyone can convert. But should you? There are some things you’ll want to consider in deciding whether to convert to a Roth IRA: How will you pay the conversion tax? Traditional retirement accounts … [Read more...] about Should You Convert to a Roth?
The Irrevocable Life Insurance Trust
With the estate tax sure to make a comeback next year, estate tax planning is once again at the forefront of many peoples’ minds. And in calculating your gross estate for tax purposes, the IRS includes the value of any life insurance policies you own. For people whose life insurance policies drive the value of their gross estate into the taxable realm, an Irrevocable Life Insurance Trust (ILIT)can be an effective estate planning tool. How does it work? You establish an ILIT and name a … [Read more...] about The Irrevocable Life Insurance Trust
