Sometimes people use Joint Tenancy as a simple way to do Estate Planning. This can have drawbacks, sometimes serious and unexpected. First, why is Joint Tenancy a simple way to do Estate Planning? At the death of a joint tenant, the property automatically transfers by operation of law to the remaining joint tenant(s). This can be attractive because it bypasses the probate process and all it entails. Probate is the process that moves property titled in the name of one person (the decedent) … [Read more...] about Joint Tenancy Problems in Estate Planning
Dynasty Trusts
Trusts are very useful, flexible tools to hold assets. They allow for management of assets during your life, upon your incapacity, and for the continued management of the assets after your death. Perhaps you’d continue to hold the assets in trust until your children reach a suitable age to manage the money for themselves, like age 25 or 30. But you could keep the assets in trust even longer. You could keep the assets in trust for the lives of your children, and your children’s children, and so … [Read more...] about Dynasty Trusts
Biden Administration Could Reduce Estate Tax Exclusion
The estate tax exclusion is the amount you can give without facing an estate tax. Under current law, you may give this amount during life or at your death and after that amount is used, you face a federal tax of 40% on assets beyond that amount. The amount has fluctuated a great deal over the years. It was $675,000 as recently as 2001. In 2021, the exclusion is a whopping $11.7 million per person. This exclusion consists of a “permanent” exclusion of $5 million, adjusted for inflation since a … [Read more...] about Biden Administration Could Reduce Estate Tax Exclusion
Updating Your Plan: Powers of Attorney
This is the first in a two-part series of articles on updating your plan. This first article examines the importance of updating Powers of Attorney, both Financial and Medical. The second part of the series looks at the importance of updating your primary estate planning documents, such as your Trust or Will. Together, these documents are the keystone in even the most basic estate plan and it’s important to keep them up-to-date. First, what’s a Power of Attorney? It’s a document by which you … [Read more...] about Updating Your Plan: Powers of Attorney
Updating Your Plan: Your Trust or Will
This is the second in a two-part series of articles on updating your plan. This first article examined the importance of updating the Powers of Attorney, both Financial and Medical. This second part of the series looks at the importance of updating your primary estate planning document, such as your trust or will. Together, these documents form the core of even the most basic estate plan and it’s important to keep them up-to-date. Every state has laws controlling what happens to your assets if … [Read more...] about Updating Your Plan: Your Trust or Will
Updating Your Plan: Beneficiary Designations
This is a bonus part of a series of articles on updating your plan. The first article examined the importance of updating your Powers of Attorney, both Financial and Medical. The second part of the series looked at the importance of updating your primary estate planning document, such as your Trust or Will. Together, these documents are the keystone in even the most basic estate plan and it’s important to keep them up-to-date. However, it’s also important to make sure beneficiary designations … [Read more...] about Updating Your Plan: Beneficiary Designations
Preparing for the Unexpected…and the Eventual
All of us face difficulties and tragedies in our lives. Some of these difficulties are expected and some are unexpected. 2020 has been a year of many unexpected difficulties. While all of us get sick from time to time, nobody anticipated the COVID-19 pandemic. Over 9 million Americans have caught the disease, resulting in the deaths of over 230,000 Americans. Apart from coronavirus, there are many unexpected tragedies, such as 795,000 Americans suffering a stroke each year, according to … [Read more...] about Preparing for the Unexpected…and the Eventual
What the 2020 Election Could Mean for Your Estate Plan
How did the 2020 elections shape the political landscape and what does that changed landscape mean for your estate plan? First, at the top of the ticket, it appears Joe Biden and Kamala Harris are the new President-Elect and Vice-President Elect, with an apparent 306 electoral votes to Donald Trump and Mike Pence’s apparent 232 electoral votes. Democrats retained control of the House of Representatives, although with a narrower majority. The Senate is a more complicated matter. Republicans … [Read more...] about What the 2020 Election Could Mean for Your Estate Plan
A Time for Thanks and Community
Thanksgiving is a time for giving thanks and for community with family and friends. While 2020 has been a difficult year for many of us, there is still much for which we can be grateful. As we gather around the Thanksgiving table with our loved ones, let’s be grateful for the food on our table and the companionship of our loved ones around us, both those seated at the table and those joining us electronically. While the pandemic has altered this traditional holiday and the way many of us … [Read more...] about A Time for Thanks and Community
What’s an “Atom Bomb” or “Contingent Remainder” Beneficiary?
When you’re planning your estate, among other things, you decide who should inherit your assets. You choose your beneficiaries, typically your children, grandchildren, or other close relatives. But what if all the beneficiaries you’ve chosen and all their descendants have died? Then it would fall to the “contingent remainder” beneficiary. Often the “contingent remainder” beneficiary has a slang nickname, like the “atom bomb” beneficiary or “exploding turkey” beneficiary. The contingent … [Read more...] about What’s an “Atom Bomb” or “Contingent Remainder” Beneficiary?
