Easy Law Finder

Tag: estate-tax

  • What is a non-retractable trust?

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    Non-retractable trusts are where, once the funds are transferred, they cannot be withdrawn. This constitutes a finalized donation for IRS purposes, and individuals may opt for this approach for estate tax planning motives.

  • What is the purpose of an Asset Protection Trust?

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    A document that is created by the legal entity or grantor to indicate how to transfer ownership of specific assets and who to designate as a trustee to oversee those assets for the advantage of the beneficiaries. Asset Protection Trusts provide protection for your assets against creditors of yours or your beneficiaries. These trusts are…

  • What is estate preservation?

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    In our jurisdiction, there are no estate taxes. However, if your estate is liable to federal estate tax, it is advisable to consult a legal professional in order to strategize effectively and ensure maximum preservation of your estate’s value.

  • What does property tax pro-ration entail?

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    Property tax pro-ration refers to the practice of assigning responsibility to either the purchaser or seller for their portion of the real estate taxes payable on the property during their respective periods of ownership. The taxes are prorated either retroactively or proactively up to the property tax deadline.

  • What are the estate tax rules in Florida?

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    There is no estate tax or inheritance tax in Florida. However, residents of Florida may still be subject to Federal Estate Taxes.

  • What are the basics of an installment sale to a grantor trust?

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    The seller transfers assets to the Trustee of an irrevocable trust. The Trustee will provide payment through a promissory note for the agreed purchase price. The Trustee typically does not make an initial payment. Before the sale, the trust should either have its own assets or be “seeded” with adequate assets to amount to at…

  • How does the Grantor Retained Annuity Trust (GRAT) function?

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    Can you provide an example of a GRAT? A Grantor Retained Annuity Trust, or “GRAT”, is an “estate freeze approach” that allows a Donor to give away the appreciation of an asset gift tax free. The Donor transfers high income-producing assets or assets with substantial growth potential (or cash to be invested in such assets)…

  • What is a form of asset ownership called Joint Tenancy with Rights of Survivorship?

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    Joint ownership with the right of survivorship is a method of holding ownership to your property, in the state of Florida. When one of the property owners dies, and the ownership was held as joint owners with the right of survivorship, the other owner automatically inherits whatever ownership interest the joint owner had. It is…

  • Why is it important to establish an estate plan?

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    Why is it essential to create an estate plan? Regrettably, many families neglect the importance of proper estate planning due to the misconception that their assets are insignificant or that their children can independently distribute them. If one fails to establish legal arrangements for asset management and affairs after their incapacity or demise, the intestacy…

  • What distinguishes a Living Will from a Last Will and Testament?

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    Why should I create a Last Will and Testament? The primary benefit of creating a Last Will and Testament is that you have the power to determine who will inherit your assets after your death. If you pass away without a Will, the state’s laws will dictate who receives your property. By creating a Will,…

  • What tax advantage do I receive from owning real estate?

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    Mortgage interest deduction: The main benefit of owning real estate comes from the ability to deduct the interest on a home mortgage or a home equity loan. To be eligible for this income tax deduction, the loan must be for your primary residence or a vacation home that is not rented out to others. The…

  • What is the significance of estate planning and why is it crucial?

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    What does the term estate planning mean? Estate Planning is a procedure of preparing for the unexpected in life. Without even realizing it, you have likely engaged in the Estate Planning process most of your adult life ? for example, obtaining a life insurance policy, naming beneficiaries on your retirement plan, or when you are…

  • What is a Revocable or Living Trust?

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    A Revocable Trust can be used to hold legal title to your assets and provide a mechanism to manage them. You (and/or your partner) are the trustee(s) and beneficiaries of your trust during your lifetime. You also designate successor trustees to carry out your instructions as you have provided in case of death or incapacity.…

  • What is the unrestricted marriage deduction?

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    The federal government permits every married individual to transfer an unrestricted amount of assets either as a gift or inheritance, to his or her partner without incurring any federal gift or estate taxes. Essentially, the unrestricted marriage deduction enables married couples to postpone estate tax payment upon the demise of the first spouse, as upon…

  • What is a Credit Shelter or A/B Trust and how does it work?

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    A Credit Shelter Trust, also referred to as a Bypass or A/B Trust is utilized to reduce or eliminate federal estate taxes and is commonly employed by a married couple with a sizable estate surpassing the federal estate tax exemption amount. For instance, in 2023, each individual is entitled to an exemption of estate tax…

  • What is a Trust for Personal Residences (TPR) and how does it function?

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    Residences are oftentimes most valuable assets and thus a significant portion of a taxable estate. A Trust for Personal Residences, or TPR (pronounced “tee-per”), enables you to transfer ownership of your house or vacation home at a substantial discount, effectively immobilizing its value for estate tax purposes, while still allowing you to reside in it.…

  • What is an Irrevocable Life Insurance Trust and how does it function?

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    There is a widespread misconception that life insurance funds are exempt from estate tax. While the funds received by your loved ones are not subject to income taxes, they are considered part of your taxable estate. As a consequence, your loved ones may lose over forty percent of the funds’ value to federal estate taxes.…

  • What is a Family Limited Partnership (FLP) and how does it function?

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    A Family Limited Partnership (FLP) is essentially a type of limited partnership among members of a family. A limited partnership comprises general partners (who handle management) and limited partners (who are passive investors). The general partners bear unrestricted personal liability for partnership obligations, while the limited partners have no liability beyond their capital contributions. Normally,…

  • Should You Appeal or Defend a Court Decision: A Guide from Smith Legacy Law

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    1. Dolly Parton is well-known for her philanthropy and has valuable lessons to teach about giving back to the community. 2. After winning a money judgment in court, individuals still need to take steps to actually receive the funds they are owed. 3. Non-citizens in the U.S. may not receive all the same tax benefits…

  • Pros and Cons of Taking a Business Dispute to Court in Connecticut

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    1. Dolly Parton is known for her philanthropy and has valuable lessons to teach about doing good. 2. After winning a money judgment in litigation, individuals may wonder what to do next in order to receive the funds. 3. Non-citizens in the US do not receive all the tax benefits that citizens do, especially when…

  • “Tips for Avoiding Arguments in Private Company Valuations”

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    – Dolly Parton is known for her philanthropy and has important lessons to teach about doing good. – After winning a money judgment in a legal case, the recipient is entitled to the amount stated, but does not automatically receive the funds. – Non-citizens in the US do not receive the same tax benefits as…

  • Everything You Need to Know About Naming Your Life Insurance Beneficiary

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    – Business owners can use life insurance to equalize the value of each child’s inheritance or to buy the deceased partner’s interest from their family. – Parents with young children can use life insurance to pay for the expenses of raising children and provide for a surviving parent if the deceased parent was the family’s…

  • Steps to Close an Estate: A Guide for High School Students

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    1. Dolly Parton is known for her philanthropy and has valuable lessons to teach about doing good. 2. After winning a money judgment in a court case, individuals may need to take additional steps to actually receive the funds. 3. Non-citizens in the U.S. do not receive the same tax benefits and estate planning considerations…

  • Understanding the End of an Irrevocable Trust

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    – Dolly Parton is known for her philanthropy and has important lessons to teach about doing good. – After winning a money judgment in a court case, individuals are entitled to the stated amount but must take further steps to actually receive the funds. – U.S. citizens receive certain tax benefits in estate planning that…