Inheritence

January 16, 2012   Inheritance

Protect Against the Generation Skipping Transfer Tax

When you die, if some or all of your estate bypasses your children and goes directly to a grandchild, your estate could have to pay a tax called the generation skipping transfer (GST) tax. This is a very expensive tax. It is equal to the highest federal estate tax rate in effect at the time, and is in addition to the federal estate tax."Skipping a generation," and incurring this tax, can happen in three ways. It can happen intentionally, for example if you "skip" the living parent (your child) and leave an inheritance directly to your grandchildren. It can also happen unintentionally. For example, if the inheritance is in a trust for your child, he or she dies after you but before receiving the full amount in the trust and your grandchildren will receive their parent...
December 20, 2011   Inheritance

Will Your Kids Be Unintentionally Disinherited?

Taking ballroom dancing lessons helped Claire cope with the recent death of her husband of 40 years. Her instructor provided her with the companionship she was missing. Claire, with a new sense of self-esteem, soon fell head-over-heels in love. Her children were shocked when their mother announced she had married her instructor.But the real shock came a few months later when Claire died: the children learned their mother had placed all her assets in joint ownership with her new husband. Even though Claire's will left everything to her children, they were completely disinherited.How have you planned your estate? Have you followed the traditional approach of leaving everything to your spouse? Have you thought about what could happen if you die first? Even if your spouse doesn't remar...
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