Is The Estate Tax Repealed - Myths And Realities Of Estate Planning
I am a do-it-yourselfer. I love working around my house: Painting, building, and even stuccoing. But there are exceptions, like plumbing. I hate plumbing. One thing I have learned about my handyman hobby is that I should expect to buy twice the building materials that I should need to complete the project. Experience tells me that I will use all of those materials. My habit is to try to build the first time, fail, and then to try it again. Almost invariably, I will end up building or fixing up the same thing at least twice -- once or twice for practice, and then "for real." Some who would never consider fixing a garage door or stuccoing a wall would unthinkingly prepare a will or trust using many materials found in bookstores. Bookstores abound with quick-fix be-your-own-lawyer books and CDs, featuring forms and fill-the-blank forms and programs for wills, trusts, and powers of attorney for healthcare decisions. Some of these materials are even state specific, offering different provisions for residents of different states.
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.
As a youngster, I recall seeing a thick blue booklet in my family's bookshelf written by Norman F. Dacy, entitled How to Avoid Probate. The book is a classic, and helped to spawn the move within estate planning field away from wills, and toward "living" or "inter vivos" trusts (which is Latin for "during life"). Some now associate the word "probate" with the twin evils of expense and delay. Many conclude that probate is "bad," but may not have any idea why this is so, or even what exactly probate is. Simply stated, "probate" is a court-supervised method of transferring property and compensating creditors after death. In California, for instance, there are two main methods of communicating one's wishes for disposition in a court supervised probate proceeding. The first is through a properly witnessed and executed will. The second method is through a "holographic," or handwritten will (although, not all states offer a holographic will). To be valid, both types of wills have specific requirements, the details of which are beyond this article.
With that information, estate planning attorneys can then explain to you the best alternatives for seeing that your estate is handled as you wish. They will not only discuss wills and trusts; they will present options which you can employ immediately to lessen the taxes and probate costs on your estate.
Concerning the issue of expense, in California the ordinary attorneys and personal representative fees are determined by statute, and are set out specifically in the Probate Code [California Probate Code 10800]. Extraordinary expenses may sometimes be charged, but the court must permit the added expense. Sometimes expenses may be saved if the personal representative waives his or her fee. If the executor or administrator is a family member, rather than an institution or professional, fees are often waived to save expense. In the final analysis, trusts are usually more expensive than wills to prepare, but wills administered through a court supervised probate are usually more expensive and time consuming than administering a trust. However, at least in California, there is another possible alternative: An expedited procedure for small estates (i.e., estates under $100,000, excluding exempted property) [California Probate Code 13100], which does not require opening and administering a probate estate. Therefore, in some cases opening a probate may not even be necessary.
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.
As a youngster, I recall seeing a thick blue booklet in my family's bookshelf written by Norman F. Dacy, entitled How to Avoid Probate. The book is a classic, and helped to spawn the move within estate planning field away from wills, and toward "living" or "inter vivos" trusts (which is Latin for "during life"). Some now associate the word "probate" with the twin evils of expense and delay. Many conclude that probate is "bad," but may not have any idea why this is so, or even what exactly probate is. Simply stated, "probate" is a court-supervised method of transferring property and compensating creditors after death. In California, for instance, there are two main methods of communicating one's wishes for disposition in a court supervised probate proceeding. The first is through a properly witnessed and executed will. The second method is through a "holographic," or handwritten will (although, not all states offer a holographic will). To be valid, both types of wills have specific requirements, the details of which are beyond this article.
With that information, estate planning attorneys can then explain to you the best alternatives for seeing that your estate is handled as you wish. They will not only discuss wills and trusts; they will present options which you can employ immediately to lessen the taxes and probate costs on your estate.
Concerning the issue of expense, in California the ordinary attorneys and personal representative fees are determined by statute, and are set out specifically in the Probate Code [California Probate Code 10800]. Extraordinary expenses may sometimes be charged, but the court must permit the added expense. Sometimes expenses may be saved if the personal representative waives his or her fee. If the executor or administrator is a family member, rather than an institution or professional, fees are often waived to save expense. In the final analysis, trusts are usually more expensive than wills to prepare, but wills administered through a court supervised probate are usually more expensive and time consuming than administering a trust. However, at least in California, there is another possible alternative: An expedited procedure for small estates (i.e., estates under $100,000, excluding exempted property) [California Probate Code 13100], which does not require opening and administering a probate estate. Therefore, in some cases opening a probate may not even be necessary.
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: Learn How to Generate Profitable Income with Binary Options You have full permission to reprint this article provided this box is kept unchanged.
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New Unique Article!
Title: Is The Estate Tax Repealed - Myths And Realities Of Estate Planning
Author: Frank Miller
Email: fmiller714@yahoo.com
Keywords: Estate planning,Finance,financial planning,Legacy Planning,retirement,retirement planning
Word Count: 781
Category: Finance
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