January 31, 2017
ESTATE PLANNING, financial planning, probate, retirement, taxes, trusts, wills
Here is some more information about probate: Understanding Probate
What is Probate?
Probate is the legal process of petitioning the court to declare that a will is valid and appointing an executor to oversee the estate. The executor is the person chosen to carry out the wishes of the decedent. And the will provides instructions for what’s to be done.
Probate assets are typically assets titled in the decedent’s name alone. Common examples include:
Personal property such as furnishings, jewelry and collections.
Bank accounts or deeds to real estate, in the decedent’s name alone.
An interest in a busine...
December 21, 2016
elder law, ESTATE PLANNING, financial planning, retirement, taxes, trusts
Elective Contributions to IRAs, 401(k)s and Other Qualified Plans
On October 27, 2016, the IRS announced the new 2017 limits for IRA, pension and other contributions. For the most part, the limits remain unchanged from 2016 because there was not a sufficient rise in the cost-of-living index, which is needed to trigger an increase.
The maximum limit for contributions to IRA’s remains unchanged at $5,500 for 2017.
If you are age 50 or older, you can contribute a maximum of $6,500 to an IRA for 2017, unchanged from 2016. You can make contributions to your IRA for tax year 2016 up until April 15, 2017.
Elective deferral (contribution) ...
November 5, 2014
elder law, ESTATE PLANNING, financial planning, inheritance, trusts
The trust document spells out the rules of the road on how the property is to be held, managed and distributed. A trust document is also called a trust agreement, declaration of trust or a trust instrument.
InterVivos or Testamentary/ Revocable or Not
Trusts that are created under a will and do not come into being until you die, are referred to as “testamentary trusts.” Trusts created to be operative during your life, are called “inter vivos trusts.” These can be “revocable” or “irrevocable.”
With a “revocable” or “living trust,” the person who creates the trust has full control to reap benefits of the trust and has ...
November 3, 2014
elder law, financial planning, probate, trusts, wills
When you acquire property (real estate, investments, etc.), what you pay for property you acquire is known as your “cost basis” or investment in the property. It is this number that becomes important when you determine the tax on any gain, when the property is sold. The basis rules become very important in estate planning. Here’s why: If someone gives you property, you get that person’s basis in the property, which is known as a “carry over basis.”
But if you inherit property, you get a basis equal to the property’s fair market value on the date of death. If you have substantially appreciated property, it may be better to hold it, ...