High-value assets can be good investments. However, passing along such assets to family members or beneficiaries is not always simple. When a person dies, an inventory must be made of both debts and assets. Any debts must be paid before the intended recipients can inherit from an estate. Proper estate administration can help to handle the details of transferring ownership.
Working hard, saving and investing are good ways to prepare for the future. If those preparations include estate planning, someone will have to be in charge of handling the estate owner's assets after that person passes away. Estate administration can clear up any possible confusion over a deceased person's debts, tax responsibilities and asset distribution.
Planning for inheritance and estate taxes is essential to ensure that your loved ones and beneficiaries receive the maximum amount of your assets when you pass away. Estate planning relies on careful knowledge of both tax implications and existing laws that can affect the value of an inheritance. Those looking to preserve assets for their heirs should strive to understand how current and upcoming changes to laws may affect the value of their estates.
The expiration of the Bush tax cuts in 2013 has left many Michigan residents wondering what the future holds for federal estate tax exemptions. If Congress is not able to work out a deal with regard to these exemptions, the inheritance tax implications are going to affect many estate planning professionals and their clients in the upcoming year.
Many Michigan residents may have an IRA that they wish to leave to their spouse or a child once they pass on. However, without proper planning, much of this inheritance could be lost to taxes. Anyone with an IRA who is in the process of estate planning should understand how tax laws will affect their heirs. Doing so may allow the inheritance to have a more positive effect on a loved one's life.
Estate planning can be a complex process, and when the assets involved in an estate are of high value, it's especially critical to understand all the ways taxes can affect one's estate. That's especially true as 2012 comes to a close, because major changes in gift and estate laws for 2013 could have a massive impact on estates valued over $1 million in the coming year. These changes will not only affect estate planning here in Michigan but throughout the entire United States.
Since many couples delay marriage, or simply do not marry at all, Massachusetts residents may wonder what happens when you own a home with another in a joint tenancy and one person listed on the title dies. One reader wanted to know if there was an inheritance tax in just that situation, so we thought others may be interested in the topic as well.