Archive for the ‘ Estates & Trusts ’ Category
Another Do-It-Yourself Will (Near) Disaster
There’s a lot of things you can do for yourself, especially with help from your good friend Google or Bing. But you should never attempt to prepare your own Last Will. Even if you get the language right, that’s only part of the process. A Last Will is no good unless it is signed with [...]
Why Married Couples Need Wills
Married couples need wills, even if most of their property is owned as tenants by the entireties (TBE) or joint tenants with right of survivorship (JTWROS). This point is clear from the following situation: Husband and Wife are married with four children (one of whom is 19, and the other three are under 18). All [...]
The Fill-in-the-Blank Will Strikes Again!
Not surprisingly, I am not a fan of fill-in-the-blank wills and other estate planning documents that can be purchased from many office supply stores or online. It’s not the terms and provisions of these documents that bother me—they’re often quite adequate for straightforward situations. Rather, canned documents do not do a good job of helping [...]
Responsible Estate Planning
I like seeing estate planning related articles in major news sources. They usually confirm that the practices I preach have real-world application, and they usually explain things plainly. Two recent, short articles–one in The Washington Post and the other in The Wall Street Journal–both fit the bill. In The Washington Post, Rosalind Resnick (Axxess Business Consulting) wrote “The Parental [...]
Roth IRA Conversion Rules of Thumb
As a professional advisor, I hate giving “It depends” advice as much as clients hate hearing it. That’s why I particularly appreciated a meeting I had last week with Marc Angle, from Bernstein Global Wealth Management, on Roth IRA conversions. Marc actually had some rules of thumb about when converting a traditional IRA to a [...]
10 Things About Estate Planning for Business Owners
1. The Hardest Decisions. For business owners, the business is often the largest (or only) valuable asset of the estate. Who should inherit the business? How much direct control should they have over the business? What if they are bad business men or women? What if they don’t want to continue the business? How important is [...]
The 4 W’s of Estate Planning
All estate planning involves answering the four W’s—Who, What, When, and Where. WHO . . . …will make decisions about your health and finances if you cannot? …have you named as beneficiary of your life insurance, 401ks, and IRAs? …will take care of your affairs as executor or trustee? …will take care of minor [...]
10 Things About Creditors’ Claims in Florida Probate
1. Put It in Writing. The creditor of a deceased debtor must file a Statement of Claim with the probate court in which the debtor’s estate is being probated. The Statement of Claim must include a brief statement of the basis of the claim, including whether or not the claim has matured. 2. Racing the [...]
Filing the Estate or Trust Income Tax Return
An income tax return for the decedent’s estate must be filed if the estate had income for the year of $600 or more. The estate’s income tax return is filed on IRS Form 1041. The preparer must collect all the IRS Forms 1099 and Schedules K-1 evidencing income to the estate during the year. These [...]
Filing the Final Individual Income Tax Return
For individuals who passed away in 2009, the decedent’s final individual income tax return must be filed by April 15, 2010. Generally, the final return of a decedent should be prepared in the same manner as the return of a living person. The return is filed on IRS Form 1040. The preparer must collect all [...]