Tax Implications of Adding a Family Member to Your Deed

At first it seems like the easy, smart, money-saving path to take. Simply add your children to the deed of your home, bypass the probate process, and minimize costs to the children. This strategy is very common. The idea is to hold real property jointly with family members who are given what is called “rights of survivorship.”

There are major disadvantages to adding your children directly to your deed, and is not recommended. One such disadvantage is due to tax implications. ...

Continue Reading →
0

2016 Changes in California Law Affecting Seniors

Each year, many new laws take effect in California, and 2016 is no different. Governor Jerry Brown, elected to an unprecedented fourth term to end his career as chief executive of the state, signed more than nine hundred bills into law, while vetoing 143. Some were disapproved due to the financial burden they would impose, others for the lack of clear benefits that would result from the law and still more because of the likelihood of unneeded regulations resulting from ...

Continue Reading →
0

Positive facts about “Negative Inheritance”

You may have recently heard the term “negative inheritance” in connection with elder law and estate planning. Essentially a sociological, rather than legal, term, the apparent meaning of the phrase is misleading. At first, it appears to refer to the unfortunate situation of dying while owing debt. However, it is easy to determine that this is not how things work, your debt is not transferred to your inheritors, at least not directly.

So, if “negative inheritance” does not mean passing on ...

Continue Reading →
0

Taxes On Inheritance

Everyone who inherits any property or estate of value wonders about the tax implications. There are three different types of taxes with relevance to inheritances: Inheritance, Estate, and Income taxes.

Inheritance taxes: As of 2015, 6 U.S. states impose taxes on inheritances. They are New Jersey, Pennsylvania, Maryland, Kentucky, Iowa and Nebraska. In each case, widows or widowers inheriting property are not subject to inheritance tax. In addition children and grandchildren of the deceased are exempted from inheritance tax in all ...

Continue Reading →
0

Revocable Living Trust Concepts: The Basics

Living trusts, sometimes called revocable living trusts, are legal contracts established by a person, referred to as the trustmaker. The purpose of the trust is to own and control the assets of the trustmaker in such a way that the trustmaker’s liability for income, inheritance and other taxes is lessened. The value held by the revocable living trust can be invested, or used to purchase material items, at the direction of the trustee. Usually, the trustmaker is both the beneficiary ...

Continue Reading →
0

Gift taxes and exclusions

Gifts of any sizable amount have tax consequences to the giver, as well as the receiver. Each of us is considered, by the tax folks, to have a yearly dollar amount, above which tax must be paid on a gift that is bestowed upon anyone. This amount is known as the Annual Gift Tax Exclusion. It is the same for everyone, regardless of income or financial situation, but it has increased over the past twenty years:

  • 1997-2001: $10,000  
Continue Reading →
1

Five reasons for challenging a will

There are many requests each year to have wills overturned for various reasons. Here are five of the most common reasons Last Wills and Testaments are rescinded:

#1- The signature is a forgery. While this seems almost too simple, proving the will was not actually signed by the testator, but instead the signature is forged will cause the will to be overturned.

#2 – The person who signed the will was pressured into signing in an inappropriate way. Was the testator coerced ...

Continue Reading →
0

3 Schemes Often Used to Scam Seniors

In the animal kingdom, predators always pick the most vulnerable member of the herd to prey upon. The same is true of the human predators we call scam artists. In our current economy, seniors often have the assets that attract criminals to use schemes to separate elders from their accumulated wealth. While new schemes are thought up each day, here are three of the most common.

One: Schemes using the Internet: As more and more computer-literate folks become seniors, and an ...

Continue Reading →
0

Understanding Different Types of Trusts

When determining the kind of trust you need, the choices may be overwhelming. When it comes to the basics, it’s simple – there are two basic kinds of trusts.

  • Testamentary Trust: set up by a will and go into effect only after a person dies.
  • Living Trust: set up and exist when someone is alive and continue after they pass. Living trusts are most often recommended by Vanguard Legal Group.

Now, let’s look deeper at Living Trusts. There are two kinds of living ...

Continue Reading →
0

Choosing the Executor to Estate

One big choice you have to make when estate planning is choosing your executor. Executors have a variety of responsibilities, so it’s important to select a person who has shown financial responsibility, stability, and honesty.

It’s best to pick someone that can avoid a conflict of interest, meaning they do not have any stake in the estate. We recommend a friend or trusted business acquaintance, but not a family member named in the will, or a business partner. Be sure the ...

Continue Reading →
0
Page 1 of 4 1234