Mar 22nd, 2010 by Nicole K. White
MYTH: Holding property in a joint tenancy arrangement is a cost effective way to avoid probate.
FACT: Holding property in a joint tenancy arrangement can avoid probate; however, there can be negative consequences to doing so. The joint tenant has ownership rights in the property leaving the property subject to the joint tenants creditors. For example, a house put in a joint tenancy arrangement where the joint tenants are a parent and a child can be subject to the child’s creditors. In addition, estate plans can be revoked or changed, but property in a joint tenancy arrangement is not revocable without the cooperation of both parties. If you have a disagreement with the joint tenant, you cannot simply take the property back. Lastly, some joint tenant arrangements involving gifts may have tax consequences.
Tags: Estate Planning, joint tenancy, Probate
Posted in Estate Planning, Probate | 1 Comment »
Mar 15th, 2010 by Nicole K. White
Do you have your estate plan? If not, what are you waiting for? Every adult needs an estate plan, even if it is a simple Will. Here are 5 easy steps to help you get started on your estate plan and protect your family and assets. To create a comprehensive estate plan, you will need to gather information and make some important decisions. Click here to learn more about starting your estate plan.
Tags: Estate Plan, Estate Planning, tips
Posted in Estate Planning | 1 Comment »
Mar 10th, 2010 by Nicole K. White
Protecting your property from legal issues/problems and taxes during your life and after your death.
Tags: asset protection
Posted in Estate Planning, Estate Planning Term of the Week | 1 Comment »
Mar 8th, 2010 by Nicole K. White
Many people believe that estate plans are only for the wealthy and well-to-do.
This is another common estate planning myth. More than 60% of all Americans die without an estate plan, leaving their state’s intestacy laws to determine who will inherit their property. Intestacy laws may also determine who will act as guardian of your minor children. These laws do not consider personal circumstances or personalities, so your property and/or minor children can end up with a relative who you never would have chosen.
Regardless of the size or value of your estate, peace of mind comes in having a thoughtfully and professionally prepared estate plan, even if it is a simple will.
Tags: Estate Planning, Intestacy, Trust, Wills
Posted in Estate Planning | 1 Comment »
Mar 3rd, 2010 by Nicole K. White
The amount of property an individual may gift to another person each calendar year without incurring a gift tax and without IRS reporting requirements. For 2010, an individual can gift $13,000 to each person, per year. Married couples can combine their annual exclusion amounts and gift $26,000 to each person, per year. Gifts made to a spouse who is a U.S. citizen are exempt from gift taxes, and tuition and medical care expenses paid directly to the provider are not treated as gifts for gift tax purposes.
Tags: Estate Planning, gift tax
Posted in Estate Planning, Estate Planning Term of the Week | No Comments yet, your thoughts are welcome »
Mar 1st, 2010 by Nicole K. White
Many people believe (or are told) that a Revocable Living Trust can reduce estate taxes.
This is a very common estate planning myth. A Revocable Living Trust does not reduce your estate taxes. The main purpose of a Revocable Living Trust is to avoid probate, plan for disability/ incapacity and to protect your privacy.
A married couple can incorporate other Trusts such as A-B Trusts into their trust-based or will-based estate plan to reduce their estate taxes, but only the trust-based estate plan can avoid probate, plan for disability/ incapacity and protect their privacy. A will-based estate plan does not provide these protections.
Tags: Estate Planning, revocable living trust, Trust
Posted in Estate Planning | 1 Comment »
Feb 24th, 2010 by Nicole K. White
Ancillary Probate
Definition: Ancillary Probate is a secondary probate proceeding that occurs in a state where the decedent did not live, but where the decedent owned property.
Tags: Estate Planning, Probate
Posted in Estate Planning, Estate Planning Term of the Week, Probate | No Comments yet, your thoughts are welcome »
Feb 19th, 2010 by Nicole K. White
Child identity theft is a fast growing type of identity theft. According to the Federal Trade Commission (FTC), approximately 5% of identity theft cases involve children (about 500,000 per year). However, it is difficult to obtain exact numbers because child identity theft can go undetected for several years.
Children are highly attractive targets for identity thieves because i) children have spotless credit histories and ii) children cannot apply for credit cards or loans until they are 18. These factors give the identity thief plenty of time to use and abuse the child’s credit. Only after the child becomes an adult and is denied a credit card or loan is when he/she learns of the identity theft that occurred years ago. Read Full Post . . .
Tags: Children, Identity Theft, kids, Minors
Posted in Consumer Law, Identity Theft | No Comments yet, your thoughts are welcome »
Feb 17th, 2010 by Nicole K. White
Administrator
Definition: The person who is responsible for settling a deceased person’s estate. The administrator is named in your Will or appointed by the probate court if you do not have a Will.
Also Known As: Personal Representative or Executor/Executrix
Tags: Administrator, Estate Planning, Executor, Executrix, Will
Posted in Estate Planning, Estate Planning Term of the Week | No Comments yet, your thoughts are welcome »
Feb 15th, 2010 by Nicole K. White
4 Documents Every Parent With Minor Children Should Have
Welcome to the last installment of my five-part series, The Basics of Estate Planning. In part I, we defined estate planning and provided examples of what could happen to you if die without an estate plan. In part II, we discussed Wills, the advantages and disadvantages of having a Will as part of your estate plan, and we also discussed what you should consider before making a Will. In part III, we discussed Trusts and the advantages and disadvantages of having a Trust as part of your estate plan. We also discussed how to determine if a Will or a Trust is right for you. In part IV, we discussed the different types of power of attorney. Review parts I-IV on my blog. This last installment will focus on guardianship planning for minor children.
If you have minor children, then you need a comprehensive guardianship plan to ensure your children will always be taken care of if something happens to you and your spouse, if you are married. Read Full Post . . .
Tags: Estate Planning, guardian, Guardianship Planning, Medical Power of Attorney, Minors
Posted in Estate Planning, Guardianship Planning for Minors | 2 Comments »