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70% of Americans have failed to take care of their families by having an estate plan.
Don't be one of them! Which is right for you? A Will or a Living Trust? What is probate?
How can I avoid the estate tax or the gift tax? What about the cost of nursing home care?
When you die, your assets will pass to "others". Unfortunately, the voyage taken by your
estate as it passes to those "others" can be uncertain and dangerous.
Death and Taxes - The Complete Guide to Family Inheritance Planning;
Randall C. Doane & Rebecca G. Doane, 1998.
If you die without a Will or a Trust, you are said to have died "intestate" and property
titled individually in your name will pass to others according to the intestacy laws of
your state of residence. For example:
In most states the intestacy laws are designed to protect all of your potential heirs —
even the ones you don't like very much. Generally, the surviving spouse receives all of the
decedent's community property. However, the rules are more complicated if there is any
non-community property of the couple. A typical state's intestacy laws are as follows:
- If there are assets other than community property, the spouse receives 100% of that part of
the estate only if the decedent has no children, parents or siblings.
- If the decedent has children, then the spouse receive one-half and children divide the
remaining one-half (Some states change the spousal share to less than ½, depending on
the number of surviving children).
- If there are no children, the spouse receives three-quarters and the remainder is
distributed to parents; (if no parents, then to brothers/sisters).
Living Trust Questionnaire —
Living Trust FAQ's
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If there is no "spouse", the state law generally provides for the following distribution:
- If there are children, to the children equally;
- If no children, then to the parent or parents who survive the intestate;
- If no children or parents, then generally to brothers/sisters;
- If none of the above, then to the grandparent or grandparents who survive the intestate;
if both maternal and paternal grandparents survive the intestate, the maternal
grandparent(s) take one-half and the paternal grandparent(s) take one-half;
- If none of the above survive the intestate, then generally "to those issue of any
grandparent or grandparents who survive the intestate" (meaning any of the lineal
descendant's of that relative; e.g. decedent's cousins, nieces, nephews) who will share
equally.
- If none of the above, then all of your assets may "escheat" to the state.
For example, suppose you are a widowed woman with two wealthy adult children. You marry
a man who is the father of your three minor children. You own a home in your name and other
joint assets with your husband. Upon your death, your joint assets will pass to your
husband and be available for the support of your minor children. However, the home that is
in your name, must transfer by the laws of your state of residence. Typically, your home
will be divided ½ between your husband and ½ to your children. Your wealthy adult children
could force sale of the residence that is the home of your minor children. Are these your
wishes?
Create a Living Trust for you and your family for just $995.00.
For more answers and information, please use our Contact
page.
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