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For some simple estates, all you may need to do is split your assets in equal proportions among heirs. In other instances, however, you have more complex issues to confront: How can you apportion a family business, especially one to which all beneficiaries do not contribute the same sweat equity? How should you approach real estate, such as a house or vacation home? How can you achieve the most tax-efficient division of your property?
Back in 1913, Woodrow Wilson began his first term as president, and Americans first filed Form 1040s. Right from the beginning, Congress told the IRS to enforce rigid rules for compensation and to forget about gifts. The IRS followed orders.
If you're in a second marriage, you and your spouse may both have children from previous relationships. You don't necessarily have the same level of income or savings. You also come to the marriage with different life insurance policies and retirement plans. It isn't going to be easy to create a long-term estate plan, but it is possible if you and your spouse are honest and flexible.
Estate planning is about defining and living out your legacy during your lifetime. It enables you to enjoy the impact your plan has on the people and organizations you support. But there are a lot of myths that still need debunking:
Estate planning is about defining and living out your legacy during your lifetime. It enables you to enjoy the impact your plan has on the people and organizations you support. But there are a lot of myths that still need debunking:
You may be convinced that you need an estate plan, but you're fuzzy about what it covers and even how to make one. One great place to start is to determine your net worth. Add up rough estimates of the values of your assets, including bank and investment accounts, jewelry, collectibles, cars and boats, as well as retirement plans. Don't forget the death benefit from your life insurance. Add to that any business interests or money owed to you and, of course, real estate.
The physical and financial health challenges caused by the COVID-19 pandemic gave us time to rethink our priorities and expectations. Estate planning is one area that has received a lot of attention, and for good reason. Here are three basic areas to review as you reassess your estate plan:
Major life changes, whether good or bad, can be so overwhelming that we fail to realize just how deeply they affect our estate plan. For example, if you get divorced, you need to update not only your will but also your 401(k) beneficiary designation, since the latter trumps your will.
There are myths and misconceptions about estate planning. Here are the top common mistakes to avoid and help your family save thousands of dollars in unnecessary taxes and probate fees:
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