Many people feel uneasy when they hear the phrase "tax avoidance." The term is sometimes confused with tax evasion, which involves illegally concealing income or assets from taxing authorities. Estate planning, however, often includes legitimate and lawful strategies...
When you’ve spent your lifetime building wealth through hard work, smart investments and careful financial decisions, you hate to think that all those assets will be gone within a generation or two. Unfortunately, preserving that wealth for future generations can be...
Generally speaking, a life insurance policy is not going to count when considering the assets a person owns and determining what they owe for estate taxes. This is because, although the policy was purchased by that individual, the funds from the payout are not...
Large inheritances can often bring long-standing family tensions to the surface, especially when expectations about fairness and entitlement do not align with the final result. For high-net-worth families, estate planning decisions are rarely just about money....
A dementia diagnosis can create fear for your family. You may suddenly realize your parent never updated a trust, signed a power of attorney or created health care directives. In many families, the first question becomes: “Is it already too late?” In California, a...
You are not obligated to divide your estate equally between your heirs -- even if they might expect you to do so. You should, however, consider explaining to your heirs what you intend to do when you decide to leave unequal inheritances. Leaving your decisions...
Planning for a loved one with special needs requires more than good intentions. It demands careful planning to ensure their well-being long after you’re no longer around to see to it. To avoid unintended outcomes, a special needs trust (SNT) can be just what you need....
Some types of assets allow you to designate a beneficiary directly with the organization that holds them. Examples include 401(k) retirement accounts, life insurance policies, Totten trusts and annuities. You might choose these asset types partly because they can pass...
Creating an estate plan means taking the time to think about every asset and determine how to pass it down to the intended beneficiaries. While many people think that all assets should be included in the will, that’s not the case. Some assets, such as financial...
Estate taxes can negatively impact the legacy a person leaves after they die. While California doesn’t have a state estate tax, large estates can be vulnerable to federal estate taxes. Individuals who are already aware that their assets are worth millions of dollars...