In our previous post, we began looking at how current proposals to cut spending and increase revenue could affect important estate planning tools. Last time, we looked specifically at how grantor retained annuity trusts could be affected, and we began to speak about intentionally defective grantor trusts.
The American Taxpayer Relief Act, passed not too long ago by Congress, was able to provide a measure of certainty for estate planners with respect to tax planning, but there is still uncertainty ahead because of political debates over government spending and revenue generation. Depending on the way lawmakers choose to tackle the problem, certain estate planning tools may be targeted.
Among young people who receive sizeable inheritances, there are different groups. Some of them receive their inheritance and struggle with the responsibility of managing it. Many of them keep their money and are more or less successful in handling it. But a small group of these young people eschew their inheritance, choosing instead to give all or most of it away.
Many positives have come about as a result of Americans' increased involvement in estate planning and the necessary preparation for what happens to their wealth, property, and business(es) after they have passed away. Trusts, an incredibly useful means of keeping future generations' assets secure have become increasingly common, and many families have benefitted from parents' heightened familiarity with them.
Prior to further addressing 'Common mistakes made in IRA planning' with part two, we will be discussing current events that demonstrate for us the need for preparation for the unanticipated.
Many Georgia families have an estate plan in place to provide guidance and support for current and future finances. Many also rely on trusts for specific estate planning goals. These goals can cover any number of things including protection of financial assets from tax liability, supporting charitable institutions and providing future security for a loved one.
New estate and gift tax rate changes may affect far more people than just the very richest of Americans in 2013. The exemption line for both gift and estate taxes is scheduled to drop drastically from $5.12 million to $1 million starting in January.
In our previous post, we began looking at some of the most common mistakes and misconceptions about estate planning. Here we continue that discussion. Two common misconceptions, which are polar opposites, are that one needs a lawyer to draft all one's estate planning documents. On the opposite end of the spectrum, there can be the assumption that one doesn't need a lawyer at all. Between these extremes, there is a middle ground.
Mistakes in estate planning are not always noticed right away, but they can quite costly. It does help to have an awareness of the types of mistakes people make regarding estate planning. Here we'll explore some of the most common mistakes and misconceptions.
In our previous post, we began discussing several factors to take into consideration when selecting a trustee to manage your trust assets. As we already mentioned, it is important to consider the size and complexity of the trust assets, as well as the ability of any family members to carry out the tasks of a trustee while leaving personal interests aside.