Estate Planning

Gifting and the Annual Exclusion

Lifetime gifts are a wonderful way to bless your loved ones and make a meaningful impact on their lives. Whether it's helping a child with educational expenses, supporting a family member in need, or simply sharing your wealth to enhance their financial security, gifting allows you to express your generosity while witnessing the benefits of your support firsthand. Beyond the emotional rewards, thoughtful lifetime gifting can also provide financial advantages by reducing the size of your taxable estate and taking advantage of tax-free gifting opportunities. With proper planning and an understanding of the applicable tax rules, you can ensure your gifts provide…
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Navigating Finances After Death: A Guide to Handling Common Expenses and Accessing Funds

Dealing with finances after the loss of a loved one can feel overwhelming. Most estates take six to nine months to be fully settled, and some more complex estates can take even longer. A common question I receive is how to manage the immediate expenses like funeral costs, final medical bills, utilities, and ongoing obligations such as mortgages and credit card payments. This guide outlines the most common ways to handle these financial matters after a death, who is able to do what, and how quickly funds may be accessed to cover necessary expenses.Who This is For: Generally, if you are a surviving spouse,…
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Understanding Probate: What It Is, What Assets Go Through It, and How to Navigate It

Understanding probate is part of determining what estate planning strategies to put into place. Many people do not know what probate is other than that they should avoid it at all costs. Before diving into complex and expensive strategies, you should know what it actually is, what it means your for assets, and what it means for your heirs. Probate is a legal process that occurs after a person passes away. It involves validating the deceased person's will (if one exists), settling their debts, and distributing their remaining assets to beneficiaries. Depending on the complexity of the estate, probate can be…
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What is a Testamentary Trust?

A testamentary trust is a type of trust that is established upon the death of an individual, typically as part of a last will and testament. Unlike living trusts, which are created and become active during a person's lifetime, a testamentary trust is created by instructions left in a will, and only comes into effect after the testator's (the person who created the will) death. The assets that are to be transferred into the trust are usually part of the deceased’s estate, and the trust is governed by the terms specified in the will. A trustee is appointed to manage…
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What Estate Documents are Effective and When

When planning your estate documents, it's important to understand when each document is effective and used within your plan. In general, there are 5 life periods that determine when documents are effective or not:During Life, Capable: This period is likely where you are if you're reading this article. You're not dead yet, and you have the ability to made decisions.During Life, Incapacitated: This period describes when you are alive but unable to make decisions.During Life, End of Life: There is a special period when you are deciding end of life treatments. At Death Immediate Settlement: This is the period following death…
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Understanding Per Stirpes: A Guide with Examples

Estate planning is a critical process that ensures your assets are distributed according to your wishes after you pass away. One important concept in estate planning is "per stirpes." This legal term, derived from Latin, means "by branch" and plays a significant role in how your estate may be divided among your heirs. This article will explain the concept of per stirpes, provide examples to illustrate its application, and discuss how and where per stirpes can be included in your estate planning documents. Additionally, we will explore the implications of minors inheriting under a per stirpes distribution.What is Per Stirpes?Per stirpes…
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Charitable Lead Trust Basics

Charitable Lead Trusts (CLTs) are sophisticated financial instruments that serve dual purposes: supporting philanthropic endeavors and managing estate or gift taxes. As an estate planning tool, CLTs are particularly appealing to financially affluent individuals who are also committed to making significant charitable contributions.This article reviews the common uses, considerations, and pros and cons of implementing Charitable Lead Trust strategies. CLT strategies are complex and should involve a trusted attorney, accountant, and financial advisor. What is a Charitable Lead Trust? A Charitable Lead Trust is an irrevocable trust where the grantor (the person or persons who created the trust) donates assets…
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What to Include in Your Will: Understanding Key and Supplementary Provisions

The drafting of a Last Will and Testament (or just a Will) is a fundamental aspect of estate planning, serving as a guiding document through which a person, known as the testator, delineates the manner in which their estate should be distributed upon their demise. A Will is considered a legal declaration that ensures the testator's wishes are executed in accordance with their precise instructions. To maintain the integrity and enforceability of this document, certain essential components must be incorporated.  This article explores 5 Key Elements of a Will and 5 Optional Elements of a Will that could be included.If you…
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What Happens if You Die Without a Will

So, you've decided to pass without a will. Yep, chosen, because anyone can make one, and if you haven't, it's a choice. It's like saying, "Surprise me with chaos!" Life's full of surprises, so why not add a twist after you're gone? While you've picked the unpredictability of not having a will, let's peek into the world of what happens next. Get ready for a wild ride of legal puzzles, family dramas, and 'who gets what' uncertainties! I'm afraid to tell you... you're intestate. When someone dies intestate, state laws, known as intestacy laws, come into play to determine how…
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When to Update Your Estate Plans

Estate planning is a critical aspect of financial and personal well-being. However, it's not a set-it-and-forget-it endeavor. The circumstances of your life, the laws, and your financial situation can change over time, necessitating periodic reviews and updates of your estate plans. In this article, we will explore the key factors that determine when and why you should update your estate plans. Regular Review After you have created estate plans, it is a good idea to review them at least every three to five years to ensure they still fit your situation. This review will remind you of what you included…
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