We are going to address the subject of taxation on living trust distributions in this post, but first, we should explain some of the benefits that these trusts provide.Versatility and Efficient Estate AdministrationWhen you are getting your affairs in order, you obviously have to express your wishes with regard to the way you want your assets to be transferred. At the same time, you should consider the administration process that will take place after your passing.If you use a simple … [Read more...] about Do You Pay Taxes on Living Trust Income?
What Happens If I Die Without an Estate Plan?
Far too many people procrastinate when it comes to estate planning, and the actual percentage may surprise you. According to Caring.com, only 32 percent of adults in the United States have wills, and the percentage is just 47.9 percent for folks who are 55 years of age and older.Even though unpreparedness is widespread, most of the people who do not have plans in place say that they think it is important.Why Do They Fail to Act?The researchers asked the people who fully understood the … [Read more...] about What Happens If I Die Without an Estate Plan?
Is Charitable Giving Part of Your Legacy Plan?
Legacy planning is a more comprehensive form of estate planning. When you carefully craft your legacy, you shape the way that you will be remembered after you are gone.Charitable GivingGenerosity is one of the most highly respected human qualities. If you are in a position to do so, you may want to consider acts of charitable giving when you are establishing your legacy plan.There are personal rewards that transcend dollars and cents, but you can potentially gain some tax advantages as a … [Read more...] about Is Charitable Giving Part of Your Legacy Plan?
What Is a HIPAA Release?
The acronym HIPAA stands for the Health Insurance Portability and Accountability Act of 1996. In this post, we will explain why this piece of legislation is something to take into consideration when you are planning your estate.Advance Directives for Health CareEveryone is well aware of the fact that you have to facilitate postmortem asset transfers when you put your estate plan in place. A lot of people think this is the long and short of it, but a proper estate plan will also address … [Read more...] about What Is a HIPAA Release?
Staying Current is Especially Important in the Pandemic
President Trump and First Lady Melania Trump announced they tested positive for COVID-19. Around the same time, numerous others at the White House also tested positive. In the United States alone, the pandemic has infected over 7.5 million people and has killed nearly 215,000 of them. Worldwide, the pandemic has infected over 36.5 million people and has killed over a million of them. In today’s pandemic, it’s more important than ever to make sure your estate planning documents are current. It’s … [Read more...] about Staying Current is Especially Important in the Pandemic
Planning Is Important
As Autumn arrives, it’s not too early to consider end-of-year planning. Fundamental to end-of-year planning is deciding whether to shift income or expenses from this year to the next, to the extent possible.All other things being equal, typically you’d want to defer income (and the taxation on it) until the following year. However, if your income is lower in the current year, you may want to keep extra income in the current year to be taxed in a lower tax bracket and hence a lower marginal tax … [Read more...] about Planning Is Important
Chadwick Boseman Demonstrates the Importance of Planning
The star of multiple films, including the blockbuster superhero film “Black Panther,” died on August 28 of colon cancer. “Black Panther” by Marvel was nominated for 6 Academy Awards, including Best Picture. The film grossed over $1.3 billion worldwide. Chadwick Boseman became a role model for millions by playing Marvel Studio’s first Black superhero. Boseman also starred in films portraying real-life heroes, like Jackie Robinson (“42”), James Brown (“Get On Up”), and Thurgood Marshall … [Read more...] about Chadwick Boseman Demonstrates the Importance of Planning
Three Reasons to Use an Irrevocable Trust
Though there are variations, broadly speaking, there are two different types of trusts: revocable trusts, and trust that cannot be revoked. There are people that wonder why you would want to use an irrevocable trust that ties your hands when there is another option.We will provide the answer is this post.Incidents of OwnershipIn the legal realm, there is a concept called “incidents of ownership.” You surrender incidents of ownership if you have an irrevocable trust, because you are … [Read more...] about Three Reasons to Use an Irrevocable Trust
Don’t Assume That a Will Is All You Need
A lot of people think that an estate plan is a simple will, and that's the end of the story. In fact, this is a gross oversimplification. When you create a will, there are some other documents that should go along with it. Additionally, in many (if not most) cases, a will is really not the best asset transfer choice.Additional DocumentsYour estate plan should anticipate eventualities that may befall you toward the end of your life. Incapacity is quite common among elders, and if you do … [Read more...] about Don’t Assume That a Will Is All You Need
This Estate Planning Tool Provides Sweeping Benefits
This post is a follow-up from a previous entry that examined certain types of asset transfers that take place outside of the legal process of probate. To provide a quick review, a will would be admitted to probate by the executor, and the court would provide supervision.The probate process is costly and time-consuming, and probate records are available to all interested parties because it is a public proceeding. These drawbacks negatively impact the rightful heirs, so people who are aware of … [Read more...] about This Estate Planning Tool Provides Sweeping Benefits
