Few of us feel delight when we hear the term "tax code". However, there has been some recent excitement in the area of trust taxation and administration that we all should direct our attention to.
When you start to plan your estate in earnest you would do well to consider the details that must be attended to after you pass away. Unless the situation is very simple there are going to be some considerable tasks that must be undertaken by the individual or individuals that you choose to administer the estate.
You hear time and time again that you need an estate plan. While you already know this, there are some important do's that you should consider as part of your estate plan.
Clearly there is a financial component that lies at the core of your estate planning efforts, but this is not the only thing to take into consideration. If you want to be comprehensively prepared for the future it is important to consider all of the eventualities that go along with aging. People who reach an advanced age often decline gradually, and this can sometimes include a period of incapacitation.
If you've done even minimal research about estate planning, you've likely heard or read warnings about the lengthy probate process and its costs to your heirs and beneficiaries. Avoiding that process is the main benefit of a living trust. It provides for the handling of probate tasks while you are alive, including paying your debts and distributing your assets, so that when you pass on, your intentions do not have to be figured out and settled by a probate judge.
There are a lot of terms associated with estate planning. While most are readily understood, one of the most commonly misunderstood terms it the fiduciary. Your fiduciary holds a responsibility under the law. Fiduciaries are required to put your needs above their own - both financially and health-wise. When selecting this person, you may want to consider the following.
Retirement is just around the corner and while you think you're ready, you might be surprised at how much you still have left to do. You'll need to be 62 before you can even consider Social Security benefits and over the next 10 years, your situation can drastically change. Before you head off into retirement, consider these last minute tips:
On June 27, Governor Jerry Brown signed into law a bill that limits the state's seizure of assets from the estates of low-income residents ages 55 to 64. This is a good thing.
Prince and Estate Planning -- What We Can Learn
You already know how you want your assets distributed and you have even discussed it with your heirs, but discussing it doesn't make it legal. If you don't create an estate plan, your heirs are free to do what they will, but also they fall victim to taxes, government fees, etc.