A: The value of everything you own will need to be totaled up for your estate tax return, which is due nine months after your date of death. Many people are surprised to find out that the death benefits on their life insurance policies will be considered part of their estates by the IRS. Nevertheless, …View Article
Estate & Legacy Planning
Q: Do many of your clients have prenuptial agreements?
A: Most don’t, but prenuptial agreements are common in second or third marriages. A prenuptial agreement specifies who gets what in terms of assets and spousal support in the event of divorce. Prenups can protect your separate property, support your estate plan, reduce conflicts and save money in the event of a divorce. For a …View Article
Q: How are marital assets divided in divorce?
A: There are 9 Community Property states that divide marital assets equally. However, the other 41 states divide maritable property according to the principle of equitable distribution, which is based on the duration of the marriage, prior marriages of either party, age, health, occupation, amount and sources of income, vocational skills, employability, liabilities, and each …View Article
Q: Whom should I name as successor trustee of my trust?
A: The two main criteria are: 1) someone whom you trust, and 2) someone who is reasonably competent in financial matters. Trustees are obligated to put your interests before their own. Trustees can inadvertently breach this “fiduciary duty” if they act in a way that is careless, negligent, or could be construed as a conflict …View Article
Q: How can I protect my assets from lawsuits?
A: One of the best ways to protect your assets (especially for those in high-risk professions such as doctors, lawyers, and engineers) is through an Asset Protection Trust. There is a look-back period, which is the time between when you transfer assets into the trust and the time the assets become protected. The look-back period …View Article
Q: Should I get a will or a revocable living trust?
A: Most people with significant assets use a revocable living trust, in addition to a will. The main advantage of the trust (over a will) is your heirs get to avoid the ugly probate process (a potentially expensive and time-consuming legal process), your affairs remain private (financial affairs can become public record during the probate …View Article
Q: Should I tell my beneficiaries about their inheritance?
A: Studies on wealth transfer show that many beneficiaries are not prepared. Wealthy families in particular can save a lot of heartache by teaching their kids about money in advance of their inheritance. Your kids are more likely to take their inheritance for granted unless they understand where the wealth came from and how it …View Article