Every taxpayer has an estate tax exemption, which allows you to “shield” assets from the federal estate taxation. This federal estate tax exemption can be used to transfer assets to your beneficiaries, whether outright or in trust. Bequests to your spouse however are generally not subject to estate tax.

The federal estate tax exemption amount (before taxation commences at the 45% estate tax rate) is $3,500,000 in 2009; therefore, together you and your spouse can shield up to $7,000,000 from federal estate taxation with the proper estate planning and accompanying documentation. To take full advantage of this exemption, you need both (1) proper estate planning documentation and (2) proper asset ownership. (more…)

Oral wills, or nuncupative wills, are permitted in many states under limited circumstances. However, a form of guidelines should be utilized if you are planning on making an oral will to be assured that it will be honored.

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At times, circumstances in our lives may change. This can be due to a remarriage, birth, death, divorce, change of address, change of executor or guardian, or other situations where our present will may not cover everything that we now believe it should, but for the most part, it is still factual. We may have acquired additional assets or, in the alternative, we have recently disposed of assets that are bequeathed (assigned to a specific person) in our present will, or we wish to distribute one specific part of our assets in a different manner. It is under these conditions where it can be beneficial to change one specific part of a will rather than rewrite an entire will. It can also be far more cost-effective to draft a codicil when only a specific portion of a will needs to be altered.

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Theoretically, anyone with assets should have a will. A person without a will is said to have died intestate. When someone dies intestate, his or her assets generally pass as follows:

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The question of a living will is becoming more and more popular as time goes on. Years ago the idea of designating someone to make such a personal decision regarding your life was unthinkable. Decisions were simply made by doctors and family members as to the best course of action without regard to what the patient might wish, or without any knowledge as to their wishes. The living will takes the guesswork out of these decisions, as the patient has made their wishes known long before a final decision is necessary.

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Are you one of the nearly two-thirds of Americans who doesn’t have a Will? If cost or inconvenience has prevented you from composing your Will, you can stop putting off the inevitable today.

Although in the past people primarily relied on attorneys to create their Wills, today you can compose your own completely legal Will quickly and easily on your own. You can obtain a legal Will form that was prepared by an attorney online at very little cost. Then it is simply a matter of filling in the blanks with your personal information.

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Everyone has heard about a case involving a dispute over life-prolonging medical procedures. The stress and anxiety such decisions entail are impossible to imagine until you are burdened with having to make them. The only possible worse scenario is being prevented from carrying out your loved one’s wishes regarding life support treatments and care. One way to spare your loved ones from suffering through either of these predicaments is to create a living will.

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Unless you were living deep in an underground cave in 2004, you remember the heart-wrenching story of Terry Schiavo and the controversy surrounding her death. Perhaps the only thing more tragic than the fact that the by all accounts wonderful person was living in a persistent vegetative state, was the battle that ensued between her ex-husband and her parents over whether to remove the feeding tube that was artificially maintaining Terry’s life.

If you’re like most of us, this story forced you to confront the issue of your own mortality, and what fate would befall you if you were in Terry’s situation. The good news is this does not have to be a roll of the dice. All of the arguments and heartbreak that took place within Terry’s family could have been prevented had she had a Living Will.

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Planning for arrangements in the event of your death may seem like a daunting, and even creepy task, but the peace of mind you’ll get makes it worth it. Who knows, it may even tack on a few extra days to your life.

First off, whether they’re in a file folder in your home or in a bank safe deposit box, make sure all of your documents are in one (ideally fireproof) place. If you keep your important documents in a safe or a safe deposit box, you’ll want to make sure that your loved ones have the key and/or combination they’ll need to access them. Be sure to include any and all of the following documents: investment documents, retirement accounts, insurance policies, Living Will and your Last Will and Testament. Some documents of secondary importance you may also want to include are: frequent flyer account information, recurring credit/debit card payment info, and any union contact info.

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It is a widely held belief that one of the most unfortunate circumstances in modern society is to have a tax return selected for audit by the Internal Revenue Service (Service). Estate tax returns are subject to audit and adjustment like any other tax return.

Under current law, an estate tax return must be filed by the Personal Representative of the estate of every U.S. citizen or resident whose gross estate exceeds $675,000. The return must be filed no later than 9 months after the date of the decedent¡¯s death unless an extension has been granted.

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