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Friday, January 29, 2010
Posted by Jim Ferguson - Many of us have heard of “probate” but don’t really know what it is. Often it seems to have attached to it some of the same connotations as a disease: Avoid it if possible. And it is sometimes possible to avoid probate by use of a trust…… but that’s a discussion for another time. Here’s what going to happen to your assets when your time comes. After you die assets that have a title (your home, any other real estate, your car, stocks, bonds, etc.) are still in your name. However, you’re no longer ...
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Wednesday, January 13, 2010
This post is taken from Google's report of the New York Times article by Paul Sullivan
Wednesday, January 13, 2010 provided by the Death and taxes, the adage goes, are the only certainties in life. But when it comes to the combination of the two, the estate tax, there is only uncertainty for 2010. Most tax advisers thought that Congress would extend the estate tax before it was due to expire at the end of last year. But while the House did act, the Senate did not. So what few predicted would happen did happen: the tax is gone for ...
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Tuesday, January 05, 2010
Every state has laws, called intestacy laws, which determine what happens to real and personal property in the event that an individual dies without a will that can be located and probated. Intestacy laws may also determine who will act as guardian, and trustee if needed, of minor children. These laws do not recognize personal circumstances or personalities, nor in many cases, do they provide the judge who is applying them much latitude with respect to his decisions. In certain circumstances, in certain states, it is said that the state may benefit from your intestacy to a greater degree than ...
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Tuesday, January 05, 2010
There is no hard and fast answer to your question, however, we always recommend that you review your will (and trust documents if any) at least annually. You will be surprised at how difficult it is to do so since such a review is easily forgotten. You need an effective way to schedule this review and a good time is immediately after you have filed your federal income tax return for the simple reason that you will have a good grasp of your personal financial matters at that time. However, any method that consistently causes you to remember to review your ...
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Tuesday, January 05, 2010
The most difficult estate planning decisions involve the simultaneous death of both parents, and the most difficult of those decisions is who to choose as guardian of your minor children. It is difficult to imagine that anyone would raise your children with as much love and care as you would. For that reason, it may seem that no one will be a satisfactory choice. Nevertheless, a well-thought-out choice is better than no choice at all. Remember, should the need for a guardian arise, the situation is already less than ideal and difficult circumstances already exit. By careful thought and planning now, you can ...
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Monday, January 04, 2010
Different jurisdictions use different terms for the taxes they levy when an individual dies so it isn't possible to make an absolute distinction between estate taxes and inheritance taxes. However, the tax that the federal government levies on larger estates is always called the "Federal Estate Tax". Beyond that, the most valid generalizations are as follows: - Estate taxes are taxes levied on the value of the assets that were owned by a deceased individual. They are usually paid out of the assets of the estate before the estate is distributed. A number of states levy estate taxes separate from and in addition to the federal estate tax. The federal estate tax, levied only if the ...
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Monday, January 04, 2010
Q: What’s the difference between living trusts and living wills?
A: A "living trust" is an estate planning document that can be used to augment or replace a last will and testament. (See our blog topic: "What is a Revocable Living Trust?") A "living will" is very different. A living will is essentially a health care directive. In fact, more and more commonly living wills are called "advance health care directives". In the event that you become incompetent an advance health care directive tells your loved ones and medical professionals what your wishes are with respect to medical treatment or the desire not ...
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Monday, January 04, 2010
Trusts can be grouped in to the following categories: Living trusts - established while you are still alive Testamentary trusts – established by the terms of your will Living Trusts can be: Revocable – meaning that the trust creator can decide to revoke the trust, or a portion of the trust, and resume ownership of the assets Irrevocable – meaning that the trust creator has permanently given up ownership of any assets placed in the trust See Revocable v Irrevocable Trusts below.
There are a variety of reasons to set up a trust. In some cases you may even want ...
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Monday, January 04, 2010
The IRS divides charities into two general groups: 50-percent charities and 30-percent charities. Generally churches, schools, hospitals, governmental units and certain qualifying foundations are considered 50-percent charities. Other organizations that don’t qualify as 50-percent charities are considered 30-percent charities.
Gifts to qualifying charities are subject to different rules and depend upon the gross income of the donor, whether or not the donor is an individual or a corporation, the type of property donated, and whether the donee is a 50-percent or a 30-percent charity.
If you as an individual want to donate cash to a 50-percent charity the total available deduction ...
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Monday, January 04, 2010
Q: Can you tell me how community property is handled for purposes of inheritance?
A: For purposes of inheritance each spouse in a community property state owns his or her half of the community property and can dispose of that half by will or living trust. It does not automatically pass to the surviving spouse. A surviving spouse continues to own his or her separate half. Community property states are Alaska (both spouses must sign an agreement using specific language), Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
In these states (excluding Alaska), assets acquired by either spouse ...
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