Tag Archives: subject

Are All Asset Transfers Subject to the Probate Process?

The probate process is something that you should understand when you are making estate planning decisions. Assets are not immediately distributed to the heirs in many instances. Some asset transfers are subject to the probate process, but some types of asset transfers would not go through the process. Before we define probate property, let s look at some asset transfers that would not be subject to the probate process. Living Trusts If you were to use a living trust as a vehicle of asset transfer instead of a last will, the trustee that you name in the trust agreement would be able to distribute assets in the trust to the beneficiaries outside of probate. This is one benefit that you would gain if you use a living trust as the centerpiece of your estate plan, but there are others. Insurance You name a beneficiary when you take out a life insurance policy on your life. After you die, the proceeds would be distributed to the beneficiary by the company. The probate process would not ente
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Is Every Estate Subject to the Estate Tax?

You may be concerned about taxes that can reduce the value of the estate that you are passing on to your loved ones. There is a federal estate tax, and in Connecticut, we have a state-level estate tax. The existence of these taxes is the bad news; the good news is that every estate is not subject to an estate tax. Federal Estate Tax Credit or Exclusion There is a federal estate tax credit or exclusion. This is the amount that you can transfer before the tax would be applied. During the rest of 2015, the federal estate tax exclusion is $5.43 million. The maximum rate that would be applied to the taxable portion of an estate on the federal level is 40 percent. If you are married, you should be aware of the fact that there is an unlimited marital deduction. You can transfer any amount of money and/or property to your spouse free of the federal estate tax. The tax-free transfers would be limited to the amount of the exclusion only when you are transferring assets to others. Connecticut St
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Are All Asset Transfers Subject to the Probate Process?

The process of estate administration is something that you should gain an understanding of if you want to effectively plan your estate. Stating your wishes in writing is part of the equation, but actions must be taken after you pass away to bring these wishes to fruition. If you maintain direct personal possession of your property and you facilitate distributions through the terms of a last will, the executor will be forced to admit the will to probate. Probate is a legal process, and it takes place under the supervision of a court. Property that was in your direct and sole personal possession at the time of your passing could not be distributed until after the probate process was completed. There is an exception in the state of Connecticut. If the estate in question is valued at $40,000 or less, a simplified probate procedure could be utilized, and the full blown probate process could be avoided. Transfers Outside of Probate There are certain types of property transfers that would no
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