The top estate tax rate for 2017 is 40% and there is a $5,490,000 exemption amount. Individuals can transfer up to $5,490,000 (indexed for inflation in the future) to heirs free from estate tax.
In addition, for married couples, if one spouse dies without using the full exclusion, the remainder can be added to the surviving spouse’s own exclusion. This provision provides a way for couples to take advantage of each other’s exemption, without having to create complicated trusts or …
Regulations exist to prevent people from transferring assets that could be used to pay their long-term care expenses. This eliminates, or at least postpones, the possibility of the government having to finance their long-term care through the Medicaid program. The look-back period for asset transfers with respect to an application for Medicaid is currently five years. Government officials can look at any gifts made as long as five years before the date that an application for assistance is made.
If …
Community property is a form of property ownership in certain states that provides that a husband and wife each own a one-half interest in the other’s assets and earnings during the course of their marriage.
Currently, community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Married couples in Alaska can also adopt community property rules, at least for the purposes of that state’s law, by signing an agreement to that effect.
In a community …
A self-proving affidavit, used in most states, is a document that goes along with a will that allows a probate court to easily accept it as the true will of a person who has died. The affidavit is signed by two witnesses, under penalty of perjury, who observed the will maker (testator) sign the will and heard the will maker say that it was his/her will.
A self-proving affidavit makes it unnecessary for your witnesses to appear in court to …
After a will is executed, it should be stored in a safe place where it can easily be found. If a bank or trust company is named as executor, it may be possible to deposit the will there for safekeeping. A safe deposit box is another good place to store a will, with a copy located in a home file. Sometimes the attorney who drew the will can store it in an office safe.
It is not a good idea …
A will is one component of an estate plan. Although necessary to direct the distribution of assets after death, almost 70 percent of U.S. adults do not have wills. Many people think they do not need a will because they do not have many assets, or they think that preparing a will costs too much. Dying without a will is called dying …
