December 25, 2012 (Press-News.org) Estate Planning May Save Your Family More Than Just Taxes
The death of a loved one is hopefully a time when family members draw closer together and celebrate their dear one's life and the bonds of family unity. Unfortunately, a family member's passing often becomes a time of disagreement and bickering over how the loved one's assets will be divided. Decades-old sibling rivalries, perceived offenses and hard feelings too often boil to the surface when money is involved and can leave scars that last a lifetime.
From the outside, the disagreement may seem ridiculous; but to those involved, the stakes are extremely high. One sibling may want to maintain their childhood home and another may only be interested in selling it. Small items such as jewelry, paintings, furniture or silverware may have specific sentimental value to one heir and only monetary value to another. Deciding how to distribute assets and money can be difficult if greed takes over and clouds good judgment.
Estate Planning Techniques
When people think of distributing the assets in an estate, a personal will usually comes to mind first. A will memorializes the desires of the deceased person as to who gets what, but is powerless until the estate enters the probate process in court, and there the will provides instructions for asset distribution. However, disagreements among heirs about how assets should be divvied up can launch a lengthy and particularly expensive process in probate court. In a will contest, a judge may have to decide the asset division and distribution.
Fortunately, some estate planning techniques can be employed in addition to a will to reduce the time and expense of probate court. For example, a person can gift up to $13,000 each year to as many people as he or she likes without either the giver or the recipients paying tax on the amounts transferred. Spouses can jointly gift up to $26,000 per year per recipient. In addition, there is presently (2012) a lifetime exclusion of $5,120,000 per person from gift taxes. This technique not only reduces your taxable estate by the amount gifted, it avoids court involvement (probate) of the amounts gifted.
Trusts
A revocable trust allows a person to transfer the titles of assets to the trust and maintain control of the property during his or her lifetime. At the time of the trust owner's death, a designated trustee can take the reigns and distribute the trust's assets to the beneficiaries as directed, by the terms of the trust. This avoids the probate process altogether on the assets placed in the trust. A well-written trust can help reduce the family conflict that often accompanies wills.
An irrevocable trust may also be used to avoid probate. In addition to avoiding probate, an irrevocable trust protects assets placed in the trust from creditors, lawsuits, medical and nursing-home bills.
Irrevocable life insurance trusts, also called ILITs, are often used to avoid taxation on life insurance policy proceeds. The policy proceeds in an ILIT are not considered part of the policyholder's estate so they are not subject to federal estate taxes when they are distributed to the trust's beneficiaries. ILITs can be used to pay for a child's or grandchild's education or to provide a slow and steady payout to the beneficiaries.
Married couples can use a bypass trust to make their children or grandchildren the estate beneficiaries, rather than each other. Bypass trusts are often combined with marital trusts in an A/B arrangement, which reduces the estate tax on inheritance, but still allows a surviving spouse to receive payments from the trust for reasonable living expenses. Many people add a qualified terminable interest property, or QTIP, trust to their A/B arrangement to maintain even greater control over asset distribution.
Inheritance can lead to nasty disagreements among family members that can cause irreparable harm. However, such conflict can be largely avoided with a few thoughtful estate-planning techniques. If you are concerned over the effect the distribution of your wealth might have on your family, contact an experienced estate planning attorney too discuss your situation and your options.
Article provided by Connors & Sullivan, P.C.
Visit us at www.connorsandsullivan.com
Estate Planning May Save Your Family More Than Just Taxes
Disagreements over inheritance can be avoided with thoughtful planning.
2012-12-25
ELSE PRESS RELEASES FROM THIS DATE:
NTSB: Expand Breath Testing To Reduce Drunk Driving Deaths
2012-12-25
NTSB: Expand breath testing to reduce drunk driving deaths
Drunk driving is one of the biggest threats to highway safety in the United States. According to data from the National Highway Traffic Safety Administration, 9,878 people died in drunk driving accidents in 2011 -- an average of one DUI fatality every 53 minutes. NHTSA also determined that, on average, alcohol-related crashes injure one person every 90 seconds in the United States.
In Illinois, drunk driving accidents claimed the lives of 297 people in 2010. Even though 2010's numbers represented a nearly ...
Is Your Trademark Protected Overseas?
2012-12-25
Is your trademark protected overseas?
If your trademark is protected in the United States, this does not ensure its safety in other countries. Before the Internet, national protections seemed to suffice. However, today, someone in another country could be using your trademark.
A trademark is a word, phrase, symbol or design, or a combination of these, which provides branding for a company. A business that thinks that its brand equity could potentially expand to other countries should consider filing a trademark to protect its brand rights.
Due to the proliferation ...
Unpaid Child Support Payments Leaving An $11 Billion Hole In The Texas Economy
2012-12-25
Unpaid child support payments leaving an $11 billion hole in the Texas economy
Texas parents are struggling with the effects of prolonged unemployment and other economic pressures by missing child support payments in record numbers, leaving a gaping, multi-billion-dollar hole in the state's economy. The huge deficit doesn't just apply to missed payments, though; more parents than ever before are also seeking downward modifications of existing orders, most often to account for a loss in income for the paying parent. On the flip side, parents who aren't receiving much-needed ...
ECRI Releases "The Top 10 Health Technology Hazards for 2013"
2012-12-25
Advances in technology can enhance the health care industry, providing various improvements and benefits. However, such developments can also create new opportunities for injury.
The Economic Cycle Research Institute, a nonprofit organization that researches the best approaches to improving patient care, recently released a report entitled "The Top 10 Health Technology Hazards for 2013." The institute intends to use the report to raise awareness of the potential dangers associated with the use of particular medical systems and devices.
The list is updated ...
Oregon Prescription Drug Crimes -- When Prescription Use Violates the Law
2012-12-25
It's not unheard of for prescription drug use to get out of hand. When you are suffering from a serious medical condition, the right pills can manage a great deal of pain, suffering and discomfort; when the medical condition begins to improve, it is not always easy to stop taking the pills you have come to depend on.
But when does prescription drug use cross the line? Under Oregon and federal law, you can be found guilty of a drug crime by misusing or overusing prescription medication; and drivers of motor vehicles need to be aware that even if you are within your prescription, ...
Chinese medicine yields secrets to scientists at The Scripps Research Institute
2012-12-24
LA JOLLA, CA – December 23, 2012 – The mysterious inner workings of Chang Shan—a Chinese herbal medicine used for thousands of years to treat fevers associated with malaria—have been uncovered thanks to a high-resolution structure solved at The Scripps Research Institute (TSRI).
Described in the journal Nature this week, the structure shows in atomic detail how a two-headed compound derived from the active ingredient in Chang Shan works. Scientists have known that this compound, called halofuginone (a derivative of the febrifugine), can suppress parts of the immune system—but ...
Study shows rapid warming on the West Antarctic Ice Sheet
2012-12-24
COLUMBUS, Ohio—In a discovery that raises further concerns about the future contribution of Antarctica to sea level rise, a new study finds that the western part of the ice sheet is experiencing nearly twice as much warming as previously thought.
The temperature record from Byrd Station, a scientific outpost in the center of the West Antarctic Ice Sheet (WAIS), demonstrates a marked increase of 4.3 degrees Fahrenheit (2.4 degrees Celsius) in average annual temperature since 1958—that is, three times faster than the average temperature rise around the globe.
This temperature ...
Fat influences decisions taken by brain cells for production and survival
2012-12-24
Scientists at Karolinska Institutet in Sweden have identified two molecules that play an important role in the survival and production of nerve cells in the brain, including nerve cells that produce dopamine. The discovery, which is published in the journal Nature Chemical Biology, may be significant in the long term for the treatment of several diseases, such as Parkinson's disease.
The same scientists have previously shown that receptors known as "liver X receptors" or LXR, are necessary for the production of different types of nerve cells, or neurons, in the developing ...
Understanding cell organization to tackle cancer
2012-12-24
Scientists at The University of Manchester have identified how cells know which way up they need to be. The discovery could help in the fight against cancer because in the early stages of the disease the cells become disorganised.
Professor Charles Streuli and Dr Nasreen Akhtar of the Wellcome Trust Centre for Cell-Matrix Research have conducted new research that leads to a better understanding of cell polarity. Properly organised tissues are vital to maintaining functional organs and a healthy body. Part of being organised includes cells being in the correct position ...
Research sheds new light on mechanisms of T-ALL, a form of leukemia that primarily affects children
2012-12-24
Acute lymphatic leukemia (ALL) is the most common cancer in children under the age of 14 years. With optimum treatment, approximately 75 % of children are currently cured, but the treatment consists of severe chemotherapy with many side effects. In collaboration with international research teams, scientists at VIB, KU Leuven and UZ Leuven have identified new genetic mutations that lead to T-ALL, a variant of ALL. They have unmasked the ribosome – the molecular machine in the cell that is involved in the production of proteins – as a weak spot in leukemia cells. Their research ...
LAST 30 PRESS RELEASES:
UMass Amherst Nursing Professor Emerita honored as ‘Living Legend’
New guidelines aim to improve cystic fibrosis screening
Picky eaters by day, buffet by night: Butterfly, moth diets sync to plant aromas
Pennington Biomedical’s Dr. Leanne Redman honored with the E. V. McCollum Award from the American Society for Nutrition
CCNY physicists uncover electronic interactions mediated via spin waves
Researchers’ 3D-printing formula may transform future of foam
Nurture more important than nature for robotic hand
Drug-delivering aptamers target leukemia stem cells for one-two knockout punch
New study finds that over 95% of sponsored influencer posts on Twitter were not disclosed
New sea grant report helps great lakes fish farmers navigate aquaculture regulations
Strain “trick” improves perovskite solar cells’ efficiency
How GPS helps older drivers stay on the roads
Estrogen and progesterone stimulate the body to make opioids
Dancing with the cells – how acoustically levitating a diamond led to a breakthrough in biotech automation
Machine learning helps construct an evolutionary timeline of bacteria
Cellular regulator of mRNA vaccine revealed... offering new therapeutic options
Animal behavioral diversity at risk in the face of declining biodiversity
Finding their way: GPS ignites independence in older adult drivers
Antibiotic resistance among key bacterial species plateaus over time
‘Some insects are declining but what’s happening to the other 99%?’
Powerful new software platform could reshape biomedical research by making data analysis more accessible
Revealing capillaries and cells in living organs with ultrasound
American College of Physicians awards $260,000 in grants to address equity challenges in obesity care
Researchers from MARE ULisboa discover that the European catfish, an invasive species in Portugal, has a prolonged breeding season, enhancing its invasive potential
Rakesh K. Jain, PhD, FAACR, honored with the 2025 AACR Award for Lifetime Achievement in Cancer Research
Solar cells made of moon dust could power future space exploration
Deporting immigrants may further shrink the health care workforce
Border region emergency medical services in migrant emergency care
Resident physician intentions regarding unionization
Healthy nutrition and physical lifestyle choices lower cancer mortality risk for survivors, new ACS study finds
[Press-News.org] Estate Planning May Save Your Family More Than Just TaxesDisagreements over inheritance can be avoided with thoughtful planning.