You may think of a will or living trust as the primary place to dictate who’ll receive your assets after your death. But for many people, a large portion of their assets — perhaps even most of them — will be distributed according to beneficiary designations. These generally apply to retirement accounts, life insurance policies,
Because of recent tax law changes, income taxes — not estate taxes — are now a more significant focus in estate planning. And one key planning area is the step-up in basis, which affects the capital gains tax heirs owe when they sell inherited assets. Why Income Taxes Are a Focus The 2026 federal gift
For 2026, the federal gift and estate tax exemption is $15 million. That’s effectively $30 million for a married couple, assuming both spouses’ exemptions are available. (For 2027 and beyond, the exemption will be adjusted annually for inflation.) If the dollar value of your taxable estate exceeds the exemption, your estate will get hit with
Given the dramatic increase in the federal gift and estate tax exemption over the last 20 years, there’s a common misconception that federal estate planning is a concern of only the wealthiest individuals. Indeed, with the exemption amount currently at $13.99 million (increasing to $15 million in 2026), most families don’t need to be concerned
Thanks to today’s favorable federal gift and estate tax rules, most people haven’t amassed enough wealth to worry about federal estate taxes. However, even if you haven’t had the good fortune to win the lotto or inherit millions from a wealthy relative, you still need an estate plan to protect your assets and your loved ones.
Today, almost everyone owns some sort of digital asset – and some of these assets can be quite valuable. But if your estate plan doesn’t account for digital assets property, your heirs may not be able to access them. So, factoring these intangibles into your estate plan is essential. What Are Digital Assets? Financial transactions are
Estate planning isn’t just for the rich and famous. For example, you may have family heirlooms (such as jewelry or artwork) or real property that has sentimental value to certain family members. Wills and trusts can help ensure that your estate is divvied up fairly after your passing. But you won’t be around to explain
For 2022, the federal estate tax exemption is $12.06 million (effectively $24.12 million for a married couple). With such a generous exemption, you might assume that you don’t need to worry about the federal estate tax if you die. Plus, after taking a beating in the stock market this year, the assets in your estate may
If you’re an executor or personal representative of an estate – or even an heir – eventually you want closure on the estate. Sometimes, estate proceedings continue to be open for years with no end in sight. There are certain steps that must be taken to close the estate. This article describes the general procedures. The
An inherent problem with wills and other estate planning documents such as trusts is that, when the time comes to put them into action, you won’t be around to explain or interpret them. Fortunately, there are strategies you can use during your lifetime to minimize the risk of a fight over your estate after your death.
