It is natural for people to either create or modify estate plans so that they can take advantage of tax laws that can result in substantial savings. However, with the best financial intentions, a person’s overall purpose in setting up trusts or modifying them may be lost.
If you learn that you are tapped to be an executor, the responsibilities that come with administering an estate can be overwhelming. After all, the process of legally transferring property and assets from the deceased to heirs or beneficiaries (and even creditors) is not something that people do every day. Also, if there are disputes over who is entitled to receive the property, this can be daunting.
If you have not heard of a self-directed IRA, you are certainly not alone. Most people who are building wealth through IRAs, use the traditional means (i.e. Roth, Inherited, SEP or SIMPLE). However, most are unfamiliar with the concept of self-directed IRAs and the benefits of having them.
If you created your estate plan before 2005, chances are that it did not have any provisions dealing with the handling or distribution of digital assets. Don’t worry, if this describes the current state of your plan, you are not alone. Most estate plans created before then did not deal with these assets, since they are a relatively new aspect of estate planning. However, a large majority of people have now have email accounts, digital copies of important documents (such as deeds and contracts) as well as pictures and videos stored on a hard drive or in a cloud storage mechanism.
Inheriting property from a loved one may bring about a range of emotions. On one hand, you may be saddened by a reminder of what he or she left behind. On the other hand, it could be an opportunity to keep a part of your family’s history relevant for another generation.
People in the midst of creating an estate plan understand that the ultimate goal is to provide for others (especially vulnerable adults and children) when they are no longer able to do so. But part of the difficulty of estate planning is that the future cannot be predicted.
If you have aging parents whose mental faculties are fading, or you have special needs children who need additional measures of guidance after turning 18, you may be wondering how you may help them avoid catastrophic financial issues that can ruin their lives.
We think of estate planning as a way to ensure that our heirs and beneficiaries have what they need in the event we pass away. While this might seem easy for those aspiring to leave assets, it may not be so for those who are slated to receive them. Beneficiaries may have very different ideas about what they are entitled to compared to what is articulated through a will.
Estate planning is not as simple as you may think. After all, you are trying to plan for the future that does not always go as you think it would, and you are trying to make sure that your current assets grow and are protected so that your beneficiaries will not be harmed by expensive estate taxes. However, even those with the best intentions may make mistakes in managing their estate plans. Through this post, we will highlight some common errors, so you won’t make them.
With the federal income tax filing deadline approaching, there probably few people who are concerned with completing estate tax returns before April 18. After all, this tax is only applicable to estates valued at more than $3.5 million, and is required to be filed within a reasonable time after an estate proceeds through probate.