When a person dies, their assets must be distributed among their relatives or persons of their choosing. Accounts, real property, and even sentimental items may be bequeathed to individuals, groups, or organizations. An estate plan can help a decedent’s loved ones (and the appropriate probate court) determine who gets what after death. Estate plans often
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Since the Tax Cuts and Jobs Act of 2017, the federal estate tax exemption limit has doubled from $5 million per individual to $10 million per individual (indexed for inflation). This means that the estate and gift tax exemption limit in 2021 will be $11.7 million in 2021, up from $11.58 million in 2020. This
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The estate planning process aims to simplify the transfer of assets and properties between generations while minimizing costs and streamlining wherever possible. By default, dying intestate (without a will or any other estate planning documents) means that anything you own will automatically be distributed as per state law. This may not be in your best
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Annuities are highly flexible financial instruments designed to turn an initial lump sum or series of installment payments into a larger nest egg for the future through investment. These payments are made to a financial institution, which then uses them to manage assets on your behalf until the annuity is fully paid out to you.
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California transmutation agreements enable married couples to “transmute” community property into separate property, and vice versa. A transmutation agreement can also be used to transfer property between spouses. There are pros and cons to utilizing a transmutation agreement. They are usually used as a tool for postnuptial property distribution, tax purposes, establishing ownership over certain
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Creating and funding a trust is a multistep process. It takes time to complete that process, and a vital part involves transferring assets and property into a trust. When transferring a home into a trust, for example, the home’s title must be amended via a deed to reflect that it is currently owned by the
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As more and more Americans struggle to save up for retirement and finance their end-of-life care, many surviving children will find themselves worried about the debt their parents leave behind. While debt does not die with its debtor, it also is not typically inherited. Unfortunately, it is going to become more common to die with
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Suppose you have a loved one with a disability qualifying for government benefits. In that case, the chances are that you might want to ensure their wellbeing past what the government provides after you pass away. Simply bequeathing property or money to a loved one is not a solution, however. Not only could that impose
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An estate plan might not necessarily be at the top of your current priority list, especially if you and your partner are young. But regardless of whether you’re in your early 20s or nearing retirement age, unmarried couples should consider putting together a few simple documents to prevent the headaches that accompany available end-of-life care
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Regardless of whether you have been named an executor or a trustee in someone’s estate, that title comes with a tremendous amount of responsibility and quite a list of duties and tasks. If you have not been briefed on what this role may entail, then understanding estate planning basics can go a long way towards
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