ipl-logo

Pros And Cons Of Estate Planning

1028 Words5 Pages

During the Middle Ages, crusaders sailing East developed Trusts to protect their families and their assets when they could not. A lot has changed over the centuries, but the essential purpose of estate planning has not. People plan to protect themselves and their families from probate, taxes and costly mistakes. However, without fully understanding the changing legal and financial landscape even a well thought out estate plan can fail. It is critical to plan with skilled legal, tax and financial professionals and to watch out for common pitfalls. If you have already planned your estate or are considering creating a plan these are the seven most common mistakes to be wary of.

Mistake No. 1: Not planning to avoid probate

Many people only have …show more content…

This can attract unsavory attention to a surviving spouse or other family members.

Consider avoiding the expenses and time delays of probate and protect your family with a Trust. A Trust, with you in charge, can own your home and other assets and allow them to pass to your family smoothly and efficiently. It can also build in tax savings and asset protection that a will cannot. It is very important to work with a qualified professional who will help you understand how a trust and other documents should be designed to meet your goals.

Mistake No. 2: Not planning for a …show more content…

The guardian may not be the person you would choose. The most effective way to avoid these unnecessary complications is to plan ahead with a trust and other disability documents that are current and meet privacy standards under HIPPA. A durable power of attorney alone will not be enough, as these documents are often rejected by institutions if they were signed more than one year ago or not on their proprietary forms.

Mistake No. 3: Not planning for the Massachusetts and Federal Estate Taxes.

A trust is an effective way of doubling the amounts that a married couple can pass tax free to their children and grandchildren. While the federal estate tax free amounts continue to change and may drop to $1 million per person in 2011, it is important to consider how the growth of your assets over time will effect your tax situation. The state of Massachusetts also imposes a separate estate tax on all estates over $1 million. Your planning should address both of these taxes, which can be substantial.

Mistake No. 4: Not considering the potential for double taxation on IRAs and other retirement

Show More
Related

Hensgen Home Case Study

484 Words | 2 Pages

The Trust We discussed the trust private paying for Kathy to reside at the Hensgen Home. This is an option according to Joe Baldwin. Joe is requesting a mock CPT be completed to determine Kathy’s annual cost to private pay at the Hensgen Home. 3.

Read More

Comparison Of Apple And RSPCA

1321 Words | 6 Pages

Advantages of having a charitable trust is that it increases the level of trust in your organisations and many people would prefer to give their money or support to your charity than an unregistered organisation. Another benefit can be that charities have several benefits from governments for instance; tax benefits which are available to registered charities that are being funded by government and not those that are unregistered charities. Whatever the income or capital the charity produces will be immune from income tax and this is a benefit of charitable trusts. Charitable trusts do not have to pay more than 20% business rates. Charitable trusts have benefits such as they can easily raise

Read More

Roberts V. Tuckey Case Study

1368 Words | 6 Pages

In both forms of property ownership, each spouse will hold a half interest in the home with a value of $225,000 and a basis of $150,000. When one spouse dies holding this interest, the other will receive the entire interest with a higher basis. When the property is held as joint tenants, only the half that is held by the deceased spouse will receive a “step-up” in basis. This will leave the surviving spouse with property with a value of $450,000 and a tax basis of $375,000. When the property is held as community property, the entire property will receive a step-up in basis as

Read More

Delaware Protection Trust Analysis

572 Words | 3 Pages

A Delaware Protection Trust (DAPT) is an irrevocable self-settled trust that is for the settlors own benefit. Since the Trust is self-settled, the grantor is still able to maintain some degree of control through appointment, removal, and decision making procedures (Karl & Levin, 2013). A DAPT trust can contain a wide array of assets, depending on the type of restriction in place by the applicable state laws of the grantors residence. A DAPT trust can is method for securing and protecting ones assets from future creditor or ex-spouses (Begley, 2014). Having said this, there are some things to consider in order ensuring that a DAPT is initiated in such a way that it could not be pierced on the grounds of fraud or ex-spousal rights.

Read More

The Selfish Use Of Money In The Westing Game By Ellen Raskin

1044 Words | 5 Pages

The heirs started to have tunnel vision, the joy caused by just the thought of what they could do with $10,000 deterred them from the

Read More

Lizze Boarden Research Paper

1144 Words | 5 Pages

I MUST get the inheritance. I cannot lose it to my father’s thieving wife or get caught. August

Read More

Per Stirpes Rhetorical Analysis

478 Words | 2 Pages

Instead, list specific beneficiaries such as alternate beneficiaries or residuary beneficiaries. Estate planning is difficult and there is no reason to make it more difficult. So, keep your beneficiary pool to a precious few and specifically list each beneficiary. In the end, nothing will be left to interpretation and your property will transfer

Read More

Unified Credit Exemption

1502 Words | 7 Pages

Question #2: Can an individual transfer some assets to a trust and count it as a gift? Answer: Yes. Since the Crummey case in 1968, transfer made to a trust can

Read More

Who Is Maria Luisa Paredes's Authorization To The Garden Of Angels Cemetery

126 Words | 1 Pages

My soon to be ex-wife Maria Luisa Paredes and I Arturo Paredes have purchased a burial plot under both of our names in the year 2003. I was informed by the Garden of Angels Cemetery that in cased I died before Maria the Cemetery would need Maria’s authorization so I can be allowed to be buried in the burial plot that we buy together. All I am asking to the court is for Maria to agree in writing that she will give her authorization to the Garden Angel Cemetery for my body to be buried in our burial plot in case I die before her. I also agree to give my authorization for Maria’s body to be burry in the case that she goes before me

Read More

George Prignano Unjust Enrichment Case

1301 Words | 6 Pages

Prignano v. L. Prignano, 2001 IL App (2001) 2-09-0439. This case concerns the will of George Prignano's business and personal interests after his death in July 2000. George owned several businesses with his brother, Louis Prignano, the defendant. George's second wife, Nancy, alleged that George and Louis agreed that, upon the death of either of them, the survivor would buy out the other's share of the businesses from his heirs, using the proceeds from life insurance policies purchased for that purpose. Nancy also alleged that she and Louis had an oral agreement to the same effect, which stated that Louis would purchase George's share of the No. 2--09--0439 -2- companies from her in exchange for the insurance proceeds.

Read More

The Effects Of The Sherman Anti-Trust Act

1539 Words | 7 Pages

An example of a harmful trust would be the infamous Standard Oil Trust. The trust was formed in January, 1882 and according to linfo (www.linfo.com), “At that time, Standard Oil and its affiliates controlled more than 90 percent of the oil refining capacity and most of the

Read More

Specific Legatee Case Study

585 Words | 3 Pages

Since the testator has already reserved particular property for the specific legacies, they may now be inclined to support a cause there were passionate about. In this can, they would not want to do a specific request because the testator would have to keep track the specific asset and update their will if a sale, loss, or theft of the property were to occur. By giving a general gift, the testator can be confident that the specific amount to be given will be received by the charity, as long as the value of the total estate warrants its release. Since general gifts may often be stated in cash value and the IRS has only deemed interest or other income generated from the inheritance (….), as opposed to the inheritance itself, as taxable, this type of legacies often will not have unique tax

Read More

Wassily Kandinsky Essay

540 Words | 3 Pages

As Kandinsky served in the Bauhau art and design school in 1922, he taught students Germany about form and color theory, stating that, "absolute green is the most peaceful color there is: it does not move in any direction, has no overtone of joy or sorrow or passion, demands nothing, calls out to no one" (Kandinsky, Norton Simon Foundation). Wassily Kandinsky ussian-born painter, became one of the leaders of the avant- garde art and is concidered the first modern artist to create pure abstraction in the early 20th century. Wassily Kandinsky was born on December 4, 1866 in Moscow to his musical parents Lidia Ticheeva and Vasily Silvenstrovich Kandinsky, who was a tea merchant. At the age of five, his parents divorced and he moved in with his aunt to Odessa where he learned to play the cello, and piano as well as to paint. Though he had the desire to become an artist, he followed his family 's wishes and became a lawer from the University of Moscow in 1886.

Read More

Pros And Cons Of Estate Planning

538 Words | 3 Pages

Estate planning can help eliminate any uncertainties over the administration of your estate and get the most out of it by

Read More

Persuasive Speech: Life Protection Insurance And Saving Plans

1659 Words | 7 Pages

A. People will be unprepared to deal with future uncertainties, which would affect the well-being and quality of life of yourself and your loved ones. B. You will have no compensation to help you cope with the rainy days if you lose your source of income because of certain illnesses or disability or even premature death. If this happens, you and your dependents will be financially burdened. 2. Solving this problem requires you to make the right choice and think for yourself and you family.

Read More

More about Pros And Cons Of Estate Planning

Related Topics

Open Document