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, ...