As described in an earlier blog, the estate tax is simply a one-time tax that some people have to pay upon their deaths. It is based on the net value of this person’s total assets, so it includes things like bank accounts, real estate, and stocks. This tax is based on whether or not your total net worth is more than about 11.6 million dollars. If your sum is less than that amount, then you are not charged a death tax. If your sum is more than that, you will be taxed a percentage of 40% for any surplus amount.

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It’s been said that nothing is certain but death and taxes and, for some, this is definitely a harsh truth. The “Death Tax” is a nickname often used to refer to the federal estate tax. This is simply a one-time tax that some people have to pay upon their deaths. It is based on the total value of a person’s assets. It includes things like bank accounts, real estate, and stocks. This tax is based on whether or not your total net worth is more than about 11.6 million dollars as of 2020. If your sum is less than that.

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A common question I get is whether or not creating a living trust means you will have property tax consequences or changes. I often suggest my clients get a living trust, especially if they own property in the state of California. But, a major drawback seems to be the possibility of causing a property tax reassessment if anyone touches the title to the property. No one wants the added stress of a reassessment, but please note that there are exemptions for this. You simply have to look for them.  Why Choose a Trust in the First Place?  Most people tend.

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Proper estate planning takes into consideration not only one’s assets but also the taxes that come with transferring those assets from one person to the next. Property tax refers to the amount in tax you have to pay for any real estate you own. Every year, you are required to pay taxes on this property, and that does not end once you pass away and leave those assets to someone else. No matter what option you take for estate planning (will, trust, power of attorney, etc.), the property will likely be reassessed for tax purposes unless you fall into an.

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An irrevocable trust is another one of many options to consider when it comes to estate planning. Unlike a regular trust where you can make changes while you are living, you generally cannot make any changes to an irrevocable trust once it is set in place. Think of it as essentially giving up control of that property or asset once the irrevocable trust has been finalized. It is no longer yours and you no longer have the same abilities you had previously. Whatever was designated in this type of trust now belongs to the trust itself.  How Does an Irrevocable.

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One type of asset protection prevention of future lawsuits by anonymity. Anonymity, in this case, simply refers to owning your property anonymously. The goal is not to be able to trace the asset to your name and prevent future litigation by looking like you qualify for food stamps! Instead of using your name to identify the property, you would give it a completely different name that has nothing to do with you. Once an asset is traced to you, it loses its anonymity status.  What Are My Options for Anonymous Asset Protection? It all starts with taking your name off.

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Asset protection is a way to keep your assets out of the hands of creditors and predators. It will either prevent future lawsuits, or protect your assets in case of collection. The goal is to use certain techniques to protect your assets legally with the advise of a reputable attorney.  Asset Protection Basics Asset protection is a way to keep your assets out of the hands of creditors and predators. It will either prevent future lawsuits, or protect your assets in case of collection. The goal is to use certain techniques to protect your assets legally with the advise of.

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When it comes time to get your affairs in order, it’s important to remember that the easiest option may not always be the best option. People sometimes get intimidated by the idea of making a trust or setting up a power of attorney, so they jump at any solution that seems easier than the rest. This is where a transfer on death deed starts to look more attractive.  What is a Transfer of Death Deed?  A transfer of death deed is a way for the owner of real property to appoint someone (beneficiary) to receive the property upon the owner’s.

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Planning for the unforeseeable future can be tricky. Many people assume creating a will is all you need to do, but there are more steps to consider than that. To truly protect your assets and make life easier for your loved ones, consider getting a power of attorney and a trust in place before you find yourself in the unfortunate position of needing one.  What Does a Trust Do for Me?  A trust is a document that tells others exactly what you want done with the assets you listed, should you ever become incapable of making decisions for yourself. Think.

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LegalZoom or other online trusts are a convenient way for people to convince themselves that they have protected their assets. By purchasing a few documents and submitting personal information online, clients believe they have taken proper steps to secure their future and their families. Yes, this process is convenient, but does it work?  That’s the issue with online, or what I like to call “cookie cutter” trusts. They are like parachutes or brain surgery — you never know if they are going to work until it is too late. Think about opening a parachute 50 feet in the air and.

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