The federal estate tax expired at the end of 2009, and believe it or not, the lack of an estate tax is creating a serious problem for many people who have not revised their wills in a while. The federal estate tax applied in 2009 to estates of more than $3.5 million. It is slated to come back in 2011, and apply to estates of more than $1 million. Most people expected that Congress would “fix”

When a Texas millionaire died, he left all his money to a trust.  He ordered the trustee to support his second wife in the standard of living she had enjoyed while he was alive, if her own income and resources weren’t sufficient to do so.  Once that was done, the trustee could use the trust to benefit the children of his first marriage.

Some people are worried that after they die, family members may be unhappy about certain provisions in their will and may try to challenge the will in court. This is particularly true if one child is getting less in the will than others, for instance. Here are some ways to head off a will contest: Talk to your heirs now about what you’re doing and why. Many will contests are triggered because a relative is surprised

Ordinarily, there’s no estate tax on assets that pass at death to someone’s spouse. But that’s true only if the surviving spouse is a U.S. citizen. If the spouse isn’t a citizen, then the estate tax generally applies…unless you set up something called a “Qualified Domestic Trust,” or QDOT. Instead of leaving your assets directly to your spouse, you can put them into a QDOT for his or her benefit. When you die, there is no

A large number of people have changed their investment manager recently – or have decided to become their own manager – as a result of the 2008 market collapse that led to widespread terrible returns. That’s fine – but keep in mind that if you change your manager, you should check with your estate planner to make sure that any new account you create is titled properly and in accordance with your estate plan. Many estate

A lot of websites offer retirement planning calculators, where you can enter your age, assets, and other types of information and find out how much income you can expect in retirement. These calculators may be somewhat useful, but many of them have serious flaws, and in general they produce results that are way too optimistic, according to a new study by the Pension Research Council.

If you have strong preferences regarding burial or cremation, it’s a good idea to put these in writing in your will or in your health care power of attorney. You may have expressed your wishes verbally to your loved ones, but people can become uncertain in a time of crisis, and family members might have differing views. If there is ever a dispute, having a written direction will be vital evidence of your intent.  Also, if

 If you or a loved one has recently been diagnosed with a serious disease, it’s a good idea to review your estate planning documents and adjust them to reflect the diagnosis. For instance, if someone is diagnosed with the early stages of Alzheimer’s disease – or any other disease that could affect cognitive functioning down the road – it’s wise to expedite your estate planning. Sign documents as soon as possible, while mental competency is not

Many people are concerned about their aging parents and want to talk with them about estate planning, but this can be a difficult conversation to have. Frequently, parents don’t want to discuss the subject because they don’t like thinking about their own death, and because they’re afraid that estate planning will involve a loss of independence and control. Also, children may be afraid that bringing up the topic will make them seem greedy. Yet this is

When it comes to making a will, most people have a sense of how they want to divide their major financial assets among their heirs. But people often don’t put much thought into how to divide their personal property – particularly property that isn’t worth much economically but is rich in sentimental value, such as a wedding dress, a war medal, or a photo album.