According to Internal Revenue Code (“Code”) Section 6018, if the gross estate of an individual exceeds the basic exclusion amount in effect under Code Section 2010(c), then the executor shall file the Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return (“Form 706”). In 2022, the Code set the basic exclusion amount at $12.06 million. Although a gross estate may not exceed the applicable exclusion amount, the executor may want to file Form 706 for another reason. If the … [Read more...] about Pondering Portability
Estate Planning
Estate Planning – Something You Shouldn’t Do Yourself
The advent of websites like “Legal Zoom” may lead you to believe that you can create your own estate plan without the assistance of a qualified Estate Planning attorney. You may believe or have heard that writing your intentions on a piece of paper might suffice as a Will. When you write your testamentary intentions on a piece of paper entirely in your own handwriting and sign and date it, that’s called a holographic Will. While creating your own estate plan without the assistance of a qualified … [Read more...] about Estate Planning – Something You Shouldn’t Do Yourself
Start 2022 the Right Way
Welcome to 2022! Most of us will leave 2021 without hesitation – many had high hopes that 2021 would bring the end of COVID-19 and a return to normalcy and yet we face another variant as we usher in 2022. While things may not have gone the way we hoped in 2021, we can start 2022 prepared for anything by getting our estate plans in order.The tumultuous events that plagued 2021 demonstrate the importance of a complete estate plan. Millions became seriously ill from the coronavirus. All too … [Read more...] about Start 2022 the Right Way
Answer These Questions to Shape Your Estate Plan
A lot of people who do not have estate plans in place say that they know they should take action, but they don’t know where to start. If you answer the questions we will ask in this post, an estate planning outline will start to take shape.Do you have concerns about the money management capabilities of your heirs?Asset distributions through the terms of a simple will would be provided in direct lump sums, and there would be no safeguards going forward. The inheritors would be in possession … [Read more...] about Answer These Questions to Shape Your Estate Plan
Incentives Can Be Part of Your Estate Plan
Let's be honest, some of our kids just aren't ready to handle large sums of money (like their inheritances)…Under these circumstances, you might consider making these particular family members the beneficiaries of an incentive trust.Useful GuidanceTo implement an incentive trust, you'd fund the trust and name a trustee to act as the administrator. Any competent adult who is willing to assume the role can technically act as a trustee from a legal perspective. However, you want to engage a … [Read more...] about Incentives Can Be Part of Your Estate Plan
Is Life Insurance Part of Your Estate Plan?
In a general sense, life insurance can enhance your estate plan, and it can satisfy a couple of specific objectives. We will provide an overview here, but first, we will explain the two most commonly used forms of life insurance.1. Whole LifeWhole life insurance is coverage that will pay a death benefit, and it accumulates a cash value. There is a guaranteed rate of return, so it serves as an investment instrument.This is permanent life insurance that will remain in place unless you … [Read more...] about Is Life Insurance Part of Your Estate Plan?
Can You Change Your Mind and Dissolve Your Trust?
They say that the only constant is change, and this reality can affect your estate planning efforts. Your original actions will reflect your mindset and your family dynamic at that time, but as life goes on, circumstances can change in many different ways.With this in mind, we will look at the matter of trust revocation in this post.Revocable Living TrustsThe most commonly used trust is the revocable living trust, and the name is self-explanatory to a large extent. This type of trust … [Read more...] about Can You Change Your Mind and Dissolve Your Trust?
Living Trust vs. Simple Will: Which One Is Right for You?
The most important decision you will make when you are getting your affairs in order is which legal device will serve as the centerpiece. Many people automatically assume that you should use a will because they have misconceptions about trusts.For example, the idea that trusts are not useful unless you are a millionaire... This is patently false, because there are different types of trusts that satisfy very different objectives.Aside from a simple will, the most commonly used estate … [Read more...] about Living Trust vs. Simple Will: Which One Is Right for You?
Don’t Overcomplicate the Estate Planning Process
Surveys that are conducted consistently find that most people do not have estate plans in place, but curiously, the majority of these people think that estate planning is important. Many of these folks drag their feet because they are not very anxious to address what they perceive as a very complicated matter.In fairness, there are some relatively complex legal structures that are sometimes used in the field of estate planning. But our attorneys have refined their knowledge of every strategy … [Read more...] about Don’t Overcomplicate the Estate Planning Process
You Don’t Have to Be Rich to Use a Living Trust
One of the most dangerous misconceptions about getting your affairs in order is the idea that trusts are only useful for very wealthy individuals. This false concept is based on a half-truth.Indeed, high net worth individuals use rather complicated irrevocable trusts to gain estate tax efficiency. At the same time, the revocable living trust that can be ideal for a wide range of people who are not among the financial elite.Let’s look at some of the major benefits that living trusts … [Read more...] about You Don’t Have to Be Rich to Use a Living Trust
