Estate planning and creating a will that will successfully provide your beneficiaries with the money and assets you want them to have is complicated and intimidating. Many families lose their wealth over time because they do not know how to handle it properly; about 70% of families that are rich lose most of their wealth by the second generation that inherits it, and about 90% of families have lost their wealth by the third generation. This loss of wealth can be avoided by preparing for the transfer of wealth as soon as you are able to. If a plan is…Read More
The Internal Revenue Service (IRS) watches the transfer of wealth carefully, and certain gifts can trigger gift taxes. Nevertheless, there are 3 easy ways you can avoid IRS gift taxes: Understanding the annual gift tax exclusion Paying medical bills Paying college tuition costs As long as you follow the IRS’s rules, neither you nor the person receiving your gift should owe taxes. Political and financial speculation should not stop you from making gifts that benefit your loved ones. If you have any questions, however, you should talk to your estate planning attorney. What Is The Annual Gift Tax Exclusion? In…Read More
There is an old quote, attributed to Andrew Carnegie, that says, “. . . shirtsleeves to shirtsleeves in three generations.” It sounds a bit cryptic today, but essentially, it means that anything you pass down will be gone within three generations. This is an American idiom, but many cultures have equivalent parables. Commonly, when we envision the American Dream, we can see how it often ends. One generation acquires the wealth, passing it down to their children. Those children live off the money, often making no contribution to the family’s riches. By the time their children are of age, there…Read More
According to research on generational wealth and asset management, one of the most significant risks to financial security for future heirs is a lack of preparation and communication about their assets. Heirs should be prepared for their financial futures, whether it’s thousands of dollars or millions. Unfortunately, these conversations rarely happen due to fears and the uncomfortable feelings associated with discussing money matters. It’s important to prepare your heirs for gaining access to a trust fund, which means conquering many of the common fears facing families as they begin the trust funding process. Common Fears Families Face When Leaving An…Read More
According to a 2019 survey conducted by the Pew Research Center, 7% of surveyed adults lived with an unmarried partner, up from 3% in 1995. More people are entering long-term committed relationships without getting married. Unfortunately, many state and federal laws do not protect unmarried couples as much as they do married couples regarding inheritance, taxes, and decision-making powers. That’s why you must engage in comprehensive financial and estate planning because without proper planning, your beloved partner could end up with nothing should you pass away. The Law Is Not On Your Side If you don’t have an estate plan in…Read More
Although estate planning is important for everyone, it is particularly valuable for unmarried partners. With the right estate planning tools, you can help ensure that your partner can make important decisions for you if you become incapacitated and/or inherit money and property if you pass away. Your estate planning tool kit will consist of 7 important documents, including: A last will and testament A revocable living trust (RLT) A pour-over will Financial power of attorney Medical power of attorney Advance health care directive(s) A HIPPA authorization form At Legacy Law Centers, we can help you with all of the above documents, and we will go into more…Read More
When it comes to protecting your unmarried partner, there are several options to consider. Depending on the value of your money and property, your desired level of protection from your partner’s creditors, and other factors unique to your situation, one or more of these strategies may be beneficial. A word of caution: regardless of what methods you use, you must work with an experienced estate planning attorney. While do-it-yourself options may be cheaper, they can sometimes create more problems than they solve, and the problems can be expensive to remedy. Add Your Partner As A Joint Owner On An Account…Read More
Confused about the differences between a will and a trust? If so, you are not alone. While it is always wise to contact experts like us, it is also important to understand the basics. We’ve prepared an easy-to-read reference guide below to help you get up to speed as soon as possible! Advantages Of A Revocable Living Trust Over A Will Avoid conservatorship and guardianship: A revocable living trust allows you to name your spouse, partner, child, or another trusted person to manage money and property you placed in a trust, should you become unable to manage your own affairs. A…Read More
Estate planning is an incredibly important tool, and it’s not just for the uber-wealthy or those thinking about retirement. On the contrary, estate planning is something every adult should do. Estate planning can help you accomplish any number of goals, including appointing guardians for minor children, choosing healthcare agents to make decisions for you should you become ill, minimizing taxes so you can pass more wealth onto your family members, and stating how and to whom you would like to pass your estate on to when you pass away. While it should be at the top of everyone’s to-do list,…Read More
Does your real estate portfolio include properties in addition to your primary residence? If so, the type of ownership you have over your real estate can vary depending upon several key factors. Let’s take a look at some different kinds of real estate and discuss what the best kind of ownership for each may be. Your Primary Residence Your ownership over your home matters because it received a special tax treatment as your primary residence. In some states, married couples can gain creditor protection through tenancy by the entirety. This can protect either of the spouses from their creditors – except…Read More
