‘Identity Theft’ a growing problem after someone dies
The latest wrinkle in “identity theft” involves criminals opening accounts in the name of people who are recently deceased. If a relative has recently died, you might want to take steps to avoid this problem. For instance, you should immediately notify the Social Security Administration of the death, to prevent someone from using the deceased’s […]
Is it time to review your ‘power of attorney’?
A “power of attorney” is an important part of almost any estate plan. This document allows someone else to take over your day-to-day financial affairs if you become incapacitated but like any element of an estate plan; a power of attorney needs to be reviewed occasionally to see if it still meets your needs. If […]
Do you need more than one trustee?
In the old days, trusts tended to be pretty simple. Typically, a trustee was expected to invest the funds conservatively and pay interest to a beneficiary at regular intervals. That was about it. Today, however, trustees are often expected to invest aggressively and successfully in a much more complex market. They may be subject to […]
Some issues to consider when you create a trust
Here’s another story that shows the importance of picking a good trustee – someone who will adhere to your wishes and prevent disputes down the road. It’s also proof that just because someone has died, that doesn’t mean they cant be the source of a lawsuit – so carefully drafting your document can save a […]
Avoiding the gift tax
Once a year, you’ll transfer to the ILIT enough money to pay the policy premiums. This transfer to a trust would ordinarily be subject to the gift tax. But there’s a way around that problem too. Under the gift tax laws, you can give $12,000 per person per year to any individuals you want before […]
Why share your life insurance with Uncle Sam?
If you own life insurance, you probably bought it to protect your family if something happens to you. But did you know that half of your life insurance proceeds could end up going to the U.S. Treasury, rather than to your heirs? The proceeds themselves will go to your beneficiaries. But the amount of the […]
How to give your home to your children and reduce taxes
Parents can give their homes to their children at a substantial tax savings by way of a trust know as a “qualified personal resident trust” (QPRT). In creating a QPRT, parents put their home or vacation home in a trust to give it as a delayed gift (usually to their children) while retaining the right […]
Planned Charitable Giving can take a Bite Out of Taxes
Planned charitable giving can play an important role in estate, gift and income tax planning. Below are some of the more common methods of providing assets to charities. Outright gifts: This is the most common and popular form of charitable gift. A will or revocable trust includes a provision leaving a fixed dollar amount or […]
Families Can Prepay Tuition as a Way to Avoid Gift Taxes
The Internal Revenue Service recently ruled that individuals can prepay tuition of family members at private schools and colleges for a number of years as a way to cut their tax bills. This wealth-transfer technique could be a wise move for people with large estates to deal with soaring education costs and trim their federal […]
Keeping your vacation home in the family
If you own a vacation home and you want it to remain in your family for the continued enjoyment by your children and future generations, you might want to consider some special planning to avoid unnecessary conflict. For example, your estate plan could specifically cover how your vacation home is to be used and maintained […]