Estate Planning Mistakes - Number Seven

If you want to make a gift to someone only if they should survive you, it must be clearly stated in the Will. One mistake that could happen is that a gift intended for a particular person could go to a totally unintended person.

For example, the Will states, I leave my shining little red corvette to my brother, John Doe. In some states, like Pennsylvania, if your brother does not survive you, then the gift could go to your brother's children. Your brother has 3 year old twin girls who clearly would not benefit from such a gift. This would not have been your intent. Therefore, you must make sure that you provide that a gift will "lapse" (not be given) if the person does not survive you.

Let experts help you with your Will and other estate planning matters. Contact us at http://www.ythlaw.com/

Estate Planning Mistakes - Number Six

As with the description of personal property to be given, you want to clearly describe the person to whom a gift is given. You want to name the person and if there is possible confusion make sure your Will indicates their relationship to you.

For example, I leave my gold watch to my best friend, Jane Doe. You do not want to just say to your best friend or to your favorite cousin. Let it be clear even if you have to also express where the person lives, at least at the time of making the Will.

Contact us for expert assistance in matters of Probate, Estate Planning and Elder Law.

Estate Planning Mistakes - Number Five

I can not tell you how many Wills did not adequately identify the property to be given. This provides for further disputes among family members. You want to be specific in your bequest. For example, provide the account number; give the property address or legal description on the Deed; provide the license number or registration. You want to catalogue art work and reference the appropriate catalogue number for distribution.

You can assist your Executor if you leave a memorandum with your Will that is precise regarding the gift. And finally, as a savings provision, let your Executor make final decisions in any dispute.

Contact us at http://www.ythlaw.com/

Free - Some Things In Life Are!!!!

We say, slow down and smell the flowers. It is FREE, you know.

Well, you can also get a hug, for FREE!! How special is that?? Watch and see!!!



Leave your comments here or contact us for your charitable estate planning today.

Charitable Remainder Trust

With anything there are pitfalls. The Charitable Remainder Trust is a great way to give appreciated property to your favorite charity while getting tax deductions for yourself. We often refer to this type of trust as the gift that gives back.

However, you must understand how this type of trust works and make sure it is right for you. It is an irrevocable trust which therefore can not be changed or terminated once it is set up. Of course there are ways available to make changes or terminate BUT at a cost of time and money. If the person setting it up and the charity receiving the benefit should agree to a proposed change or termination then court approval should be sought. Also, the Attorney General's office should be notified since the Attorney General's office handles charitable organizations.

Get the right advise upfront, contact our office at http://www.ythlaw.com/

Ways to Make Charitable Gifts

Many people during their lifetime engage in charitable giving activities. They make gifts to cancer research, heart associations, educational institutions, or well water projects. Many give to hospitals, churches, or other religious and cultural institutions. Others have long term relationships with charities and want to continue charitable giving upon their death but they just do not know how. That is where estate planning comes into play.

There are many ways to engage in charitable estate planning. Today, I will address one of the most basic ways to make a charitable gift. That is through a bequest made in your will or trust. A bequest is appealing to many people because they can maintain control of their assets until they die, it is the easiest way to give, and it can also be changed at any time. The bequest is a statement in the will or trust identifying assets you want to leave and to which charitable institution you want to leave the assets.

Tomorrow, we will address other charitable estate planning methods. Stay tuned.

Leave your comments here or contact us at www.ythlaw.com

Gift Tax Law

It is unusal but it does happen. I had a client who was the sole beneficiary under his aunt's will. His aunt did not have any children or a surviving spouse. However, there were other relatives but the aunt only saw fit to leave her estate to this particular nephew. No one disputed the will. The client came to me because he wanted to share the wealth with others.

Bottom line; the inheritance is his and he has to pay all of the inheritance taxes. If he chooses to share any of his inheritance, it would be a gift to the other relatives. Whenever assets are given to another for less than its full value, the amount by which the asset’s value exceeds the money paid for them is a gift. In this case, the $95,000 for each of 5 relatives would be a gift of $475,000. Everyone has a lifetime gift exclusion amount of $1,000,000. As long as he does not gift over $1,000,000 during his lifetime, there will be no gift tax due. However, there is a gift tax filing required if his gift over a certain amount annually. This annual exclusion amount for 2009 is $13,000. Therefore, in his case, the gift tax filing will be required.

Leave your comments here or contact us at http://www.ythlaw.com/

Uniform Transfer to Minors Act - Children's Trusts

As part of your estate plan, you want to consider the ways to give money to your children. During your lifetime, you or other members of your family can gift money to your minor children. Sometimes that money is placed in a bank account in the child's name and at age 18 the child can withdraw any and all of the money. For larger amounts of money, the Uniform Transfer to Minor custodian accounts are set up. Once funds are placed into a custodian account, the account can not be terminated. The child is entitled to all of the funds at age 21.

For significant transfers of funds to minors and to provide for a longer term, you want to consider a Trust for your children. The Trust provides flexibilty and longivity that most parents are looking for when they want money to serve for the support, maintenance and education of their children.

Consult with our office on all your estate planning needs.

Charitable Estate Planning

Over the next few decades, it is estimated that trillion of dollars will be tranferred from the parents of baby boomers to their children. Charitable giving will play an enormous role in this tranfer of wealth. Although charitable giving provides many personal and tax benefits, it has a more fundamental benefit. It is voluntary giving. Involuntary giving results from overpayment of taxes. With proper planning, involuntary giving can be avoided. Individuals can give money from their estate to the charities they desire.

Many people during their lifetime engage in charitable giving activities. They make gifts to cancer research, heart associations, educational institutions, or well water projects. Many give to hospitals, churches, or other religious and cultural institutions. Others have long term relationships with charities and want to continue charitable giving upon their death.

Over the next few days, I will provide you with the ways to engage in charitable estate planning.

EIGHTH of TEN Hot Estate Planning Topics

EIGHTH, charitable estate planning is a growing hot topic. Over the next few decades it has been stated that as much as 40 trillion dollars will be transferred from the parents of baby boomers to their children. Charitable giving will play an enormous role in this transfer of wealth. Although charitable giving provides many personal and tax benefits, it has a more fundamental benefit. It is voluntary giving and not involuntary giving that results from overpayment of taxes. With proper planning involuntary giving can be avoided. Individuals can give money from their estate to the charities they desire.

Many people during their lifetime engage in charitable giving activities. Gifts are made to cancer research, heart associations, educational institutions or well water projects. Many give to hospitals, churches or other religious institutions. Others have long term relationship with a charity and want to continue charitable giving upon their death. Some people have developed lifetime passions that become their legacy.

Let your giving be your decision and not a giving by default when you fail to plan and your family ends up paying more in taxes than necessary. Share your charitable giving news with us.