One of the things you’ll have to do as you put together your estate plan is appoint fiduciaries to manage an assortment of tasks on your behalf once you pass away; or, even if you become unable to manage your own affairs while you’re still alive. If, like many people, you decide to use a trust as one of your estate planning tools, you’ll need to appoint a successor trustee. Many people ask if they should appoint co-trustees to manage their trust; two of their children, perhaps? This is a very … [Read more...] about Should You Appoint Co-Trustees?
Four Things to Consider Before Borrowing From Your 401(k)
With the state of the economy, a 401(k) loan has become an increasingly attractive source of funds for some people. If you’re considering this option, here are some things you should know: There are limits. You’ll have restrictions both on how much you can borrow, and on how long you’ll have to pay the money back. Generally, you can borrow up to half of your account balance, or $50,000, whichever is less. And, you usually have to pay the loan back within 5 years, with payments –which are … [Read more...] about Four Things to Consider Before Borrowing From Your 401(k)
5 Estate Planning Do’s
Estate planning is one of those things that we know we need to do, but so many of us put off until it’s too late. Here are a few simple estate planning “do’s” to get you on the right track. Make a Plan: Depending on which statistic you look at, over half of all Americans die without a simple will. And without a plan, it’s state law that decides who gets your property. It could be a judge whom you’ve never met that decides who’ll be raising your children. And without a plan, the process … [Read more...] about 5 Estate Planning Do’s
Are Estate Tax and Inheritance Tax the Same Thing?
Some people have a tendency to use the terms “estate tax” and “inheritance tax” interchangeably, but the two are actually very different things. Estate Tax “Estate Tax” refers to a federal or state tax that’s assessed on the estate of a deceased individual, provided that the value of the estate is more than a certain threshold. Not all states impose an estate tax. And, as for the federal estate tax, it’s been repealed for the year 2010, but it’s scheduled to make a comeback on January 1, … [Read more...] about Are Estate Tax and Inheritance Tax the Same Thing?
Asset Protection Planning for Your Loved Ones
Are you leaving a substantial inheritance to one or more of your loved ones? If so, then one of the most powerful ways that you can use your estate plan is to make sure their inheritance is protected long after you’ve passed away. How do you do this? You build an asset protection plan into your estate plan, with the use of lifetime trusts for your loved ones. Protection Against What? What, exactly, are you protecting your loved ones against? There are three main threats to the inheritance … [Read more...] about Asset Protection Planning for Your Loved Ones
Three Reasons for Avoiding Probate
Fortunately, from the standpoint of time and expense, the probate process in Texas is not always the nightmare that we often hear about in other states. Especially for smaller estates, the process can be streamlined and may take only a few months, if there are no problems to resolve. Larger estates, or those where there’s conflict, take longer to go through the probate process. Even if you have a relatively small estate, there are still reasons why you might want to avoid probate. Here are … [Read more...] about Three Reasons for Avoiding Probate
Who Needs to Know About Your Estate Plan?
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
