Estate Planning And The Steps To Avoid Probate
Keywords: Sacramento CPA Firm, California Tax Help
If you die owning property, whether substantial or not, the property has to go to someone after your death. You can make your estate plans and make a will specifying whom you want your assets to go to, which may include one or more persons. You can provide details about exactly how you want your estate to be distributed among them. Your estate will also be subject to estate tax if it is above a certain value, which for 2007 is $2m. If it is less than that, it is exempt from estate tax. If you do not will your property (whether real or personal), or make other suitable arrangements, like forming a trust etc., the state will decide what will happen to your property. If you have family or relatives, the applicable laws of inheritance would determine who would get what and how much. In the absence of a family or other valid arrangements made by you, the property will go to the state.
The law mandates that the legal process of probate must be carried out to settle issues like claims, debts, and distribution etc., related to the property of the deceased. When there is a will or some other valid instrument, the settlement is carried out according to the terms contained therein. But if there is no such instrument, the matters are settled through a court appointed administrator.
Probate is a tedious process involving very high costs in lawyers fees etc., and it may take months of court procedures to get it finally disposed. It is also open to contest by anyone who thinks that he/she has a valid interest in the outcome of the will. A probate is filed by the person named as the executor in the will of the deceased. If the property involved in a probate is not very big, the inevitable result is that a negligible amount of the estate becomes available to the beneficiaries at the end of the probate proceedings, the rest going to satisfy the attorney fees and other legal costs. So prudence demands using all means to avoid probate.
There are, in fact, a number of ways in which you can avoid probate proceedings after your death. These are simple and easy, and will greatly benefit your loves ones to enjoy your assets without difficulty after you pass away. First of all, make doubly sure that there are correct beneficiary designations on the documents of your retirement account, life insurance, and annuities because these are not subject to probate and would pass on directly to the named beneficiaries. Get a Pass on death (POD) designation on your bank accounts. Such accounts bypass probate and the designated beneficiary gets the proceeds directly. For stocks, a similar provision, TOD (Transfer on death), enables stock to be transferred directly to the beneficiary on the demise of the stockholder. Consult you banker/broker about these. A review of the titling on your other accounts and assets can allow you to make suitable changes, so that you can acquire a title as joint tenants with right of survivorshi
p with your spouse. Although a joint tenant status may not be an ideal one with a spouse with taxable estate, however, it is an option to be considered.
If you have a large estate, you can form a living revocable trust or family trust and transfer all types of property like your investments, bank accounts, cars and other vehicles, real estate, art, antiques, furniture, jewelry etc., to the trust. The composition of the trust is such that it will not affect your access and control over your assets. It would let you trade and move your assets without restrictions in and out of the trust, and avoid the hassles involved in probate in case of your death.
A will can still be made to provide for appointing guardians for minor children and to take care of other issues that may not be covered by the above. If you have not done anything till now, consult your lawyer and start taking action right away to ensure a hassle free transfer of your wealth and assets in the event of your death.
California Tax Help is easier than ever with former IRS agent Murray and Young a Sacramento CPA Firm. To view our services and new articles for 2007 Estate Tax Planning please visit our award winning site www.april15.com.
Previous Articles Highlighter:
Should You Go For Real Estate Investment Clubs? (1)
Real Estate Investing is easy with RealNet USA. We help you Find Fund Fix and Now Sell Real Estate Investments that are not available on MLS. Check out today's inventory here www.realnetusa.com
Estate Tax Planning (2)
Another way would be to create a bypass trust in which the property is held in trust for minor children until they grow up, while continuing to provide for the surviving spouse.
Tips For Successfully Negotiating A Real Estate Deal (3)
Some investors place ads and then hope that their approach works. They have no idea about how much they should spend on such marketing strategies. Every dollar you spend on marketing should generate a measurable response and hence, you should have a good idea about how much you need to spend to click a good deal.
The Reasons Why Estate Planning Is So Important (4)
The above discourse makes it quite evident the import of having a proper estate plan. If you do not have one yet, you need to go about it while you are healthy and in a position to personally see to the preparation of the plan, as per your wishes.
Common Marketing Mistakes Investors Make And How To Avoid Them (5)
Many investors do not even try new techniques and keep on using the same old strategies of investing and selling a real estate property. In order to improve your estate investment business, you need to try certain marketing strategies to find out the best one and then stick to it.
Estate Planning Strategies (6)
To provide a fitting solution to this, you need to discuss your personal goals with your lawyers, financial advisors, and those responsible for tax and legal matters or a qualified estate planner/CPA, in order to make a suitable estate plan.
Learn The Secrets Of Successful Real Estate Negotiating (7)
Following tips will help you in real estate negotiating: .. Try to know the property value: In order to be able to negotiate well in the market it is important to know the actual value of your property.
Understanding The Foreclosure Process (8)
Do you need to Sell Your Home Fast? As Is Now will buy your house fast in any condition at a fair price. Smart home sellers use our services for variety of reasons including to Stop Home Foreclosures and Estate Sales.
A Beginners Guide To Real Estate Investing (9)
This is termed as a fixer upper house. This means you fix the problems in the house gradually, as you continue to live there. In this way you would be adding to the value of the house.
How Hard Money Loans Can Stop Foreclosure (10)
Also referred to as bridge loans, since they provide temporary financing for credit repair and property seasoning purposes, hard money loans can help to stop a foreclosure. Homeowners who have been out of work and have now found a job may still be unable to meet the full payment demanded by the bank.
How Prewritten Reports Can Boost Your Real Estate Marketing Business (11)
You can get excellent content through prewritten reports and that too at a price that you can afford. These prewritten reports can also be uploaded to your website in no time.
How To Use Your Retirement Funds For Real Estate (12)
Employers can design the plans features and provide alternative investments for themselves and their employees. Employees are allowed to operate the investments and deferrals that are established by the employers.
Estate Planning And Trusts (13)
This is a clear saving of $900,000. There are other types of trusts that serve the same purpose for other situations. (All figures are approximate, and relate to 2007).
The Ingredients Of A Lucrative Real Estate Deal (14)
There are many real estate investors who focus on the techniques of investment rather than wondering whether a deal is good or not. It takes loads of education, research and experience to recognize a good deal.
Real Estate Investing After Retirement (15)
You can invest that money in something that interests you. Many people invest during their youth and by the time they grow old, they have paid all their installments.
Exploring Opportunities In Problem Properties (16)
Investment in property can turn into a burden very fast instead of being a valuable investment if some problems develop in the property or you have tenants who are not paying you rent on time.
Estate Planning - No Contest Clause In A Will (17)
In order to prevent such an eventuality, you can incorporate a no contest clause in your will. In a nutshell, through such a clause any contestant of your will would stand disinherited or limited to receiving a mere $1 bequest or so, regardless of the outcome of the litigation.
House Flipping Info For New Investors (18)
It is important to note that HUD changed the lending regulations for Federal Housing Administration (FHA) financing, effective since July 9, 2006. In order to lower down the house-flipping concept, houses sold within 90 days of purchase are not considered as qualified for FHA financing.
Top Reasons To Buy Real Estate Overseas (19)
Good business options will mean better growth in terms of profit, as well as skills. .. Less Stringent laws: Many countries are popular for less stringent laws to be followed by the non-residents of the country.
Short Sale Real Estate Investing (20)
They are as follows: .. Search for the properties: The first step to success in a short sale real estate investment is to search for properties. This can be accomplished through regular realty advertisements and looking for distressed or overgrown property.
Newer Articles Highlighter:
The Pros Of Remortgage (1)
Remortgages are efficient in helping you lessen the sum that you keep repaying towards your loans every month. The monthly installments that one pays can be reduced considerably. Remortgages help reduce those installment amounts.
Options Trading - Blessed Are The Greeks - Part I (2)
This data is easy to acquire so it is a logical assumption that it plays a part in an option's value. The strike price is a prime example. The strike price is the contractually specified price at which the asset would have to be bought or sold if the option were exercised.
Components To Successful Online Trading (3)
Of course the upper limit is much higher. Great strides have been made also in the field of online trading software also. What are the primary functions of online trading software?
Debt Consolidation Solution - The 20 Worst Debt Warning Signs (4)
You've recently been denied a credit card or loan. 18. You have no method of paying for unprepared items like car repairs and medical bills. 19. You have given thought to filing bankruptcy.
Mortgage Note Buyers: Are They Really Helping You Get The Most Money For Selling Your Mortgage Note? (5)
You would then start to collect the payments from then on. Let's see how this looks. Sales price: $100,000 Down payment: $5,000 Original note balance: $95,000 Contract written for 30 years @ 10% Monthly payment: $833.69 Note buyer purchases first 120 payments for: $51,000 Total cash to home seller $56,000 (down payment + cash from note buyer) After 120 payments contract is returned to you with a balance of $86,391.12 Total money to you: $142,391.12 (including interest).
Mortgages For The Landlord And Landlady (6)
Buy to let mortgages are secured loans and they usually come with a long duration. So do not rush to get that mortgage. Make sure you do some prior research.
Freedom From Loans With Debt Consolidation (7)
It is hard to lead a normal life if you have been stuck with a history of bad credit. However, credit scores need not always remain bad. Look out for good advice wherever you can and try to free yourself from the web of debt.
The Sub Prime Lending Debacle And The Stock Market Downturn (8)
One type of reckless loan pushed by these lenders was the negative amortization mortgage. With a negative amortization mortgage, a borrower gets to pay very low monthly payments for the first few years of his mortgage.
How To Forbear, Defer Or Consolidate Student Loan Payments (9)
That can be a hassle, but at times it will get you out of a jam. Often with money it is making it day to day when you are fresh out of college and trying to climb the corporate ladder or attempting to start your own business.
Selling Your Mortgage Note? - Frequently Asked Questions Answered (10)
How much cash can I get? There are many factors in determining the offer price for selling a mortgage note The main four are equity, seasoning, interest rate, and credit of payer.
10 Tips To Get Out Of Credit Card Debt! (11)
Try Renegotiating your debt, consolidating debt, and debt settlement. 7. Save cash on the side if you can and start investing your extra money that could be stocks, a business, or hire a financial advisor to help you.
General Personal Finance Advice (12)
You cannot overlook the necessity of planning your savings, your tax savings and your retirement. A very interesting way to look at Asset and Liability is in the following terms: An Asset is anything which brings in money or does not change the status of your money in the bank.
What Is Mortgage Refinancing? (13)
A mortgage refinance can be availed by an individual offering his or her property as a collateral security to the lender. Property is offered as a security to protect the individual interest of the lender who can claim rights of lien over it in case the borrower fails to pay back the entire amount of the loan or goes bankrupt.
Basics And Pitfalls Of Credit Card Ownership (14)
- Due to the increased competition in this industry, the credit card companies offer many benefits like rebates, discounts, car insurances, accident insurance and warranty coverages to their users. Joseph Then provides advices about Personal Finance and dealing with bad credits.
How Can Financial Planning Help? (15)
Hence, it is wise to say that financial planning can assist you in a number of ways, among them are: - Financial planning can assist you set up beneficial use of your present income and savings.
Financial Planning Explained (16)
If you were to wonder what areas wealth management would cover the following: - Cash flow management: The ability to manage the liquidity of your cash - Investment planning: The decision of making more money with the extra cash you have on hand.
5 Action-Ideas To Manage Your Personal Finance (17)
Avoid moving when possible. Get a copy of your credit report; review the addresses that are listed for you. Remove addresses that are not applicable to where you have lived in the past.
5 Ways To Better Personal Finance Management (18)
Managing your money is all about saving money, finding more money to do things you want, and to create savings accounts for rainy days. If you need to save a little more money and to spend less on household things, you can start with your utilities.
The Importance Of Bad Debt Consolidation (19)
Unfortunately, it is precisely this mindset that probably creates the debt in the first place - an unwillingness to grapple with reality, to look at all options available, and to take a reasonable, corrective course of action.
Consolidate Debt And Avoid Bankruptcy (20)
Once the debts are paid the service will get in writing statements from all creditors that the debtor has satisfactorily paid them off according to the agreed terms and nothing further is expected.