I am getting ready to shoot a video on estate planning. I thought my notes might be of interest so some of you.
Planning Your Estate
Estate planning is not just for the rich
We all have an estate
Inheritance tax rates
Top rate is 40%
First $5.43 million excluded from estate taxes in 2015
Basic estate planning tools
Benefits of a will
Select your heirs
Make gifts
Name an executor
Appoint guardians
Specify funeral wishes
Pet arrangements
Reduce legal expenses
Avoids in-fighting
Financial power of attorney
Manage your financial affairs
Avoids conservatorship court process
Living will
What to do if you are placed on life support or can't speak for yourself
Revocable
Trusts
Four parts
Grantor
Trustee
Property
Beneficiaries
Revocable living trust
Can be modified or terminated
Takes effect upon death
You keep control over assets
Avoids probate
Months, sometimes years to settle
3-5% of estate
A-B or bypass trust
Money left to spouse is not taxed
When surviving spouse dies, there are tax consequences if their estate exceeds exclusion amount
A-B trust maximizes exclusion
Trust income can be used by surviving spouse
Marital transfers
Unlimited without gift or estate taxes
Gifting
$14,000 per person, per year
Charitable contributions
Irrevocable life insurance trust
Trust pays premiums
Proceeds are not taxable to estate
Family limited partnership
Helps with succession of assets
Taxes can be shifted to lower tax bracket members
Qualified Family Owned Business Interests Exclusion
Family owned businesses avoid estate taxes
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