I am getting ready to shoot a video on estate planning. I thought - TopicsExpress

I am getting ready to shoot a video on estate planning. I thought my notes might be of interest so some of you. Planning Your Estate Estate planning is not just for the rich We all have an estate Inheritance tax rates Top rate is 40% First $5.43 million excluded from estate taxes in 2015 Basic estate planning tools Benefits of a will Select your heirs Make gifts Name an executor Appoint guardians Specify funeral wishes Pet arrangements Reduce legal expenses Avoids in-fighting Financial power of attorney Manage your financial affairs Avoids conservatorship court process Living will What to do if you are placed on life support or cant speak for yourself Revocable Trusts Four parts Grantor Trustee Property Beneficiaries Revocable living trust Can be modified or terminated Takes effect upon death You keep control over assets Avoids probate Months, sometimes years to settle 3-5% of estate A-B or bypass trust Money left to spouse is not taxed When surviving spouse dies, there are tax consequences if their estate exceeds exclusion amount A-B trust maximizes exclusion Trust income can be used by surviving spouse Marital transfers Unlimited without gift or estate taxes Gifting $14,000 per person, per year Charitable contributions Irrevocable life insurance trust Trust pays premiums Proceeds are not taxable to estate Family limited partnership Helps with succession of assets Taxes can be shifted to lower tax bracket members Qualified Family Owned Business Interests Exclusion Family owned businesses avoid estate taxes