Tag: estate-tax
-
What is a Qualified Personal Residence Trust (QPRT) and how does it work?
Our homes are often our most valuable assets and hence one of the largest components of our taxable estate. A Qualified Personal Residence Trust, or a QPRT (pronounced “cue-pert”) allows you to give away your house or vacation home at a great discount, freeze its value for estate tax purposes, and still continue to live…
-
What is a Permanent Life Coverage Trust and how does it operate?
There is a common misconception that life insurance profits are not subject to estate tax. While the profits are obtained by your loved ones without any income taxes, they are included as part of your taxable estate and as a result your loved ones may forfeit more than forty percent of its worth to federal…
-
How can I leave my estate to my partner without incurring any taxes?
If your partner is a US citizen, you can leave your entire estate to your partner and estate taxes would be deferred until the death of the surviving partner. If you don’t want to leave the entire estate outright to your partner, you can set up a trust through your will or living trust and…
-
What is the unlimited marital deduction?
The federal government allows every married individual to give an unlimited amount of assets either by gift or bequest, to his or her spouse without the imposition of any federal gift or estate taxes. In effect, the unlimited marital deduction allows married couples to delay the payment of estate taxes at the passing of the…
-
What is a life insurance trust?
A life insurance trust is a type of irrevocable trust created by John Smith and intended to own a life insurance policy on his life. The advantage of the life insurance trust is that the life insurance policy will not be considered part of John Smith’s estate, and the proceeds from the policy can be…
-
What is the definition of the Unlimited Spousal Deduction?
The US government has granted an exemption for all transfers of assets between married partners, in addition to the $5,490,000.00 exemption for federal estate taxes. This exemption, known as the Unlimited Spousal Deduction, implies that, regardless of the size of the estate, no taxes are due when the first spouse passes away. However, it is…
-
What does the process of estate planning entail?
What does a comprehensive estate plan entail? Estate planning involves the development of a comprehensive strategy and the creation of legal documents to safeguard, preserve, and distribute assets before and after death, benefiting loved ones and charitable organizations. This process considers the impact of state and federal tax laws, as well as administrative regulations. Additionally,…
-
How can I remove assets from my estate without being subject to estate or gift taxes?
What gifts can I make without having to pay gift taxes? What can be done to minimize estate and gift taxes? Various advanced estate planning strategies are employed to minimize estate and gift taxes. There are many factors that must be considered when tailoring a plan that will work best in each client’s situation. However,…
-
How long does it usually take for a probate matter to be resolved?
How much time does the probate process usually take? The duration of a probate administration depends on various factors. Summary Administrations, also known as expedited probate processes, can be completed within weeks to months. However, for a Formal Probate, the administration takes significantly longer. Generally, these processes take between six months and one year. Uncontested…