Choosing the Right Trust

The typical layperson may not be aware of all of the options that can be exercised when an estate is being planned. Of course there is a legal document called a last will that most people are aware of, and there are also multiple different types of trusts. There are various reasons why you may want to utilize a trust of some kind. Let s look at some of the scenarios that can come into play. Asset Protection We live in a litigious society as they say, and lawsuits can be a source of concern for many people. If you were to convey assets into an irrevocable asset protection trust, they would be shielded from legal actions. You can protect assets for your own purposes, and you can also protect assets that you are leaving to a loved one when you are planning your estate. Estate Tax Efficiency The federal estate tax is a looming threat for high net worth individuals. You can transfer unlimited assets to your spouse tax-free, but transfers to others could be subject to the death tax and its
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Estate Planning: What Do I Need to Know?

You may not take estate planning especially seriously if you are not aware of the facts. Some people figure that they can simply create a last will when they are old and gray, and that is the long and short of it. Indeed, studies are conducted periodically, and they consistently find that most people have not executed the appropriate estate planning documents. In this blog post, we will endeavor to provide some food for thought, and hopefully, you will recognize the need to take action if you are currently unprepared. Estate Taxes If you are in possession of a considerable store of resources, estate taxes could significantly impact the legacy that you want to leave behind to your loved ones. There is a federal estate tax, and it is applicable on asset transfers that exceed $5.43 million. The tax carries a 40 percent maximum rate. There are a number of states in the union that impose state-level estate taxes. We practice in Connecticut, and Connecticut is one of these states. The Conne
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Why Would I Use a Trust Instead of a Will?

Everyone is aware of the fact that a will can be used as a way to state your final wishes when you are planning your estate. However, under certain circumstances, a trust of some kind can be a better choice. We will look at some of these scenarios in this blog post. Estate Tax Exposure If you maintain personal possession of your assets and arrange transfers through the creation of a last will, these resources would be part of your taxable estate. Yes, there are taxes on large asset transfers that can come into play after you pass away. We have a federal estate tax to contend with in all 50 states, and this tax carries a hefty 40 percent maximum rate. The exclusion is $5.43 million during the current calendar year. Anything that you are transferring that exceeds the amount of this exclusion is potentially subject to the federal death tax. There is a caveat to the above with regard to asset transfers between spouses. There is an unlimited marital deduction that allows for unlimited asse
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