Most of us don't put nearly as much though as we should into planning how our estates will be distributed, and the estimates are that nearly two-thirds of Americans die intestate, without having prepared a will. While their estates will eventually be distributed according the inheritance laws in their states, those laws may not reflect at all how they would have chosen to pass on their assets. If you want to avoid that situation, finding a firm of experienced estate planning attorneys is your best answer.
Estate plan trusts attorneys have a comprehensive understanding of the probate process in your state, as well as up-to-the-minute knowledge of estate tax laws. They will help you ensure that your final wishes regarding the distribution of your estate, as well as your health care and life support wishes, are carried out. Estate planning attorneys can help you regardless of whether you want to draft a simple will for a small estate; to change an existing will so that it reflects a change in your financial status; to establish a living trust; or to set up an estate plan which includes a will, trust, and your health care and life support directives.
The reality is that the current tax law repeals the federal estate tax for only one year, 2010. Depending on the year of death, the estate tax credit amount, the corresponding exclusion amount (which is the amount that each person can pass to beneficiaries free from federal estate taxes) and the top tax rate vary significantly. For instance, in 2009, a person can pass up to $3.5 million to his or her beneficiaries' federal estate tax free. For 2010 the federal estate tax was repealed. In 2011, the estate tax is scheduled to return with a significantly lower tax free amount, $1 million, and a significantly higher top tax rate at 55%. This quirk in the law is known as the "Sunset Provision" and has caused a lot of confusion among estate planners and their clients.
One myth many have is that a person's assets will always go "to the state" if he or she dies without a will. This is false. The "intestacy" statutes provide for specific property dispositions in the absence of a will -- however, these dispositions may not reach the desired result. For instance, in California should a wife with two adult children by her husband die, the husband would by definition already own one half (1/2) of the community interest of the entire estate. Under the intestacy statutes, the husband would also receive one half (1/2) of the wife's community share [California Probate Code 6401(a)] (now, giving him a grand total three fourths' (3/4ths) share of the total estate of both) and the two adult children would split the remaining one half (1/2) of their mother's assets. [California Probate Code 6402(a)]. However, this may not be the best: If the children are stingy and well-off adults, the wife might have wanted her entire estate to go to her surviving husband. Another myth is that probate estates always go on endlessly, and are always horrendously expensive. While estates can be time consuming and expensive, most can be handled in months, depending upon the complexity of the estate, the number of creditors, and other factors such as the tranquility of family relationships. On the other hand, there is certainly truth to the criticism that probate estates can be lengthy affairs: Personally, I am familiar with a probate estate which has been pending since 1991 -- about 16 years. Also, probate estates can take additional time if there are complicating circumstances like (for example) the heirs are difficult to locate or if there are disputes among family members.
Estate planning attorneys can also advise you as to whether or not any personal changes in you life will require a change in your estate plan. If, for instance, you are widowed or divorced, in you later years, and considering remarriage, you should be aware that there may be consequences for your estate. Should you remarry late in life, you and you spouse will be responsible for the costs of each other's long-term health care should one of you be placed in a nursing home. Those costs be a significant drain on you, or you future spouse's, assets.
From the past, we can predict the future. If history is any indication, we have not heard the last of the federal estate tax, not by a long shot. The federal estate tax dates back to 1797 and has been repealed four times (counting 2010) only to come back to life each time. We all know that historically estate tax has been used as a funding mechanism during times of war. Many well known and respected individuals, historic and contemporary are supporters of the federal estate tax; Theodore Roosevelt, Thomas Paine, Andrew Carnegie, Bill Gates and Warren Buffet to name a few.
Estate plan trusts attorneys have a comprehensive understanding of the probate process in your state, as well as up-to-the-minute knowledge of estate tax laws. They will help you ensure that your final wishes regarding the distribution of your estate, as well as your health care and life support wishes, are carried out. Estate planning attorneys can help you regardless of whether you want to draft a simple will for a small estate; to change an existing will so that it reflects a change in your financial status; to establish a living trust; or to set up an estate plan which includes a will, trust, and your health care and life support directives.
The reality is that the current tax law repeals the federal estate tax for only one year, 2010. Depending on the year of death, the estate tax credit amount, the corresponding exclusion amount (which is the amount that each person can pass to beneficiaries free from federal estate taxes) and the top tax rate vary significantly. For instance, in 2009, a person can pass up to $3.5 million to his or her beneficiaries' federal estate tax free. For 2010 the federal estate tax was repealed. In 2011, the estate tax is scheduled to return with a significantly lower tax free amount, $1 million, and a significantly higher top tax rate at 55%. This quirk in the law is known as the "Sunset Provision" and has caused a lot of confusion among estate planners and their clients.
One myth many have is that a person's assets will always go "to the state" if he or she dies without a will. This is false. The "intestacy" statutes provide for specific property dispositions in the absence of a will -- however, these dispositions may not reach the desired result. For instance, in California should a wife with two adult children by her husband die, the husband would by definition already own one half (1/2) of the community interest of the entire estate. Under the intestacy statutes, the husband would also receive one half (1/2) of the wife's community share [California Probate Code 6401(a)] (now, giving him a grand total three fourths' (3/4ths) share of the total estate of both) and the two adult children would split the remaining one half (1/2) of their mother's assets. [California Probate Code 6402(a)]. However, this may not be the best: If the children are stingy and well-off adults, the wife might have wanted her entire estate to go to her surviving husband. Another myth is that probate estates always go on endlessly, and are always horrendously expensive. While estates can be time consuming and expensive, most can be handled in months, depending upon the complexity of the estate, the number of creditors, and other factors such as the tranquility of family relationships. On the other hand, there is certainly truth to the criticism that probate estates can be lengthy affairs: Personally, I am familiar with a probate estate which has been pending since 1991 -- about 16 years. Also, probate estates can take additional time if there are complicating circumstances like (for example) the heirs are difficult to locate or if there are disputes among family members.
Estate planning attorneys can also advise you as to whether or not any personal changes in you life will require a change in your estate plan. If, for instance, you are widowed or divorced, in you later years, and considering remarriage, you should be aware that there may be consequences for your estate. Should you remarry late in life, you and you spouse will be responsible for the costs of each other's long-term health care should one of you be placed in a nursing home. Those costs be a significant drain on you, or you future spouse's, assets.
From the past, we can predict the future. If history is any indication, we have not heard the last of the federal estate tax, not by a long shot. The federal estate tax dates back to 1797 and has been repealed four times (counting 2010) only to come back to life each time. We all know that historically estate tax has been used as a funding mechanism during times of war. Many well known and respected individuals, historic and contemporary are supporters of the federal estate tax; Theodore Roosevelt, Thomas Paine, Andrew Carnegie, Bill Gates and Warren Buffet to name a few.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: The Factors To Consider Before Using A 401K Calculator You have full permission to reprint this article provided this box is kept unchanged.
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