California couples who are planning their will may be wondering if a bypass trust might benefit their situation. Bypass trust works as a tool to limit the amount that a married couple's estate is taxed after the death of one party. Furthermore, property in the form of a bypass trust may not subject to estate taxes.
A recent article on estate planning may interest California residents. While some individuals who are close to retirement have enough wealth to live comfortably, there may be certain circumstances where a person who is building an estate plan requires additional liquidity.
A survey conducted in 2012 found that 41 percent of baby boomers do not have a will. Additionally, the study found that 71 percent of people under the age of 34 do not have a will. A will can be an important document to have because it puts into writing an individual's desires regarding such things as who takes care of minor children or who gets a person's home or car.
Many individuals sometimes make the mistake of relying solely on wills or not doing estate planning at all. Wills are subject to probate and therefore the attendant public scrutiny of court documents. By setting up a revocable trust, actor and California resident Robin Williams prevented his family from having to deal with probate, which can be a long and unpleasant process. The terms of trusts can be kept private as well as any challenges or disagreements.
California residents who are looking into estate planning may be interested in one type of trust that can help to avoid probate while giving the person control of their money during their lifetime. This trust, however, is not without its drawbacks.
Orange County residents who intend to move out of California, or those who contemplate a relocation to the Golden State, may find that their new address adds complexity to their estate planning. It is often best to revise a will, trust or other estate planning document when moving across state lines. This helps to avoid potential problems and may possibly be advantageous to the estate or trust.
When a person dies, all their property becomes part of an estate. A person's debts do not simply go away when a person dies. Credit card debts usually must be paid out of these assets before any of the assets can be distributed to heirs.
Music fans in California may be interested in the execution of the estate of Lou Reed. According to reports, it has reportedly brought in more than $20 million since his death on Oct. 27, 2013. The probate court in Manhattan reported that the musician's estate is currently valued at more than $30 million.
California residents may be interested to learn that only approximately half of senior citizens have created a will to distribute their assets. The number of adults with a comprehensive estate plan is even lower. Some people are not aware of the importance of creating a living will, health care directive or powers of attorney in addition to a basic will or trust document. Every bit as important as creating an estate plan is knowing when to modify it. Experts recommend reviewing estate plans every few years, as tax laws and life situations change, to ensure that it continues to meet ongoing needs.
Residents of California nearing the age of retirement may be wondering how they should arrange for their property and assets to be passed on in the event that something happens to them. A revocable trust may be a good way for individuals to provide for the distribution of their assets in the event that they become incapacitated, and the trust may even make it easier for those people to draft their wills.