Trusts are a good estate-planning tool. I often say they are an excellent option when a family needs flexibility, such as after a second marriage results in a blended family or when there is a special-needs family member. Trusts provide the ability to control assets from the grave.
There are three elements you need to consider about the status of your stepchildren or foster children when determining whether they can inherit your estate.
Despite what you may think, estate planning isn’t just for the elderly. Estate planning is the process in which one plans for the unexpected, whether it be death, disability, or incapacity. In our inaugural episode of “Estate Planning Essentials,” we’ll break down the estate planning basics. From medical directives to memorial instructions, document drafting to trusts, we’ve got you covered.
During the estate planning process, it is important to ensure that your fiduciaries (the personal representatives of the estate, trustees, and agents named in the durable power of attorney) have the information necessary to access your assets and manage them in the event of your incapacity or death.
A sale for less than fair market value involves a partial gift. If the amount of the gift exceeds certain thresholds, the gift would have to be reported by the donor on a gift tax return and it could trigger a gift tax.
Beginning in 2022, the annual gift exclusion will be $16,000 per donor, up from $15,000 in recent years.