Dealing with wills and inheiretance are a necessity, but challenging.
If you don't crate a will, your estate is placed in probate, with the huge legal fees - often eating up or forcing the quick sale of property. And that doesn't even include inheritance taxes.
If you create a will, and live in a state with heavy taxes, your heirs will have to pay inheritance tax, and that can sometimes be excessive; sometimes forcing the sale of the home - ultimately - disinheriting the heirs it was destined for.
If you create a living trust, sometimes children will abuse their property rights before the parent passes, taking out loans and even getting the parent evicted from their own property. If you don't think this is a problem, we have a bridge to sell you; its located in Brooklyn New York, and its very valuable. Not really. But the point we're trying to make is, when it comes to living trusts, parents instantly lose the leverage that they have with a last will and testament. That leverage being - "Those who care for me and treat me right might get all or a majority of my property. Those who abuse or neglect me stand to get less or none. As brutal and cold as this might sound, it is nothing compared to the ways that children can abuse and neglect their elderly parents.
The state, unfortunately, invented the inheritance tax as a means of collecting revenue from the inheritance - without much care or regard for its negative impact on family legacy property.
So what is the best way to avoid the tax liability and at the same time, protect the parent's residential status and the property from being abused?
A revolkable living trust is the best instrument.
What is a revolckable living trust? It is essentially, an instrument that retroactively transfers the property to the heir before the demise of the parent; executed after their demise. Although there might be some state taxes and fees associated with this, this is generally the most cost effective way to avoid excessive inheritance taxes and legal fees.
If you don't crate a will, your estate is placed in probate, with the huge legal fees - often eating up or forcing the quick sale of property. And that doesn't even include inheritance taxes.
If you create a will, and live in a state with heavy taxes, your heirs will have to pay inheritance tax, and that can sometimes be excessive; sometimes forcing the sale of the home - ultimately - disinheriting the heirs it was destined for.
If you create a living trust, sometimes children will abuse their property rights before the parent passes, taking out loans and even getting the parent evicted from their own property. If you don't think this is a problem, we have a bridge to sell you; its located in Brooklyn New York, and its very valuable. Not really. But the point we're trying to make is, when it comes to living trusts, parents instantly lose the leverage that they have with a last will and testament. That leverage being - "Those who care for me and treat me right might get all or a majority of my property. Those who abuse or neglect me stand to get less or none. As brutal and cold as this might sound, it is nothing compared to the ways that children can abuse and neglect their elderly parents.
The state, unfortunately, invented the inheritance tax as a means of collecting revenue from the inheritance - without much care or regard for its negative impact on family legacy property.
So what is the best way to avoid the tax liability and at the same time, protect the parent's residential status and the property from being abused?
A revolkable living trust is the best instrument.
What is a revolckable living trust? It is essentially, an instrument that retroactively transfers the property to the heir before the demise of the parent; executed after their demise. Although there might be some state taxes and fees associated with this, this is generally the most cost effective way to avoid excessive inheritance taxes and legal fees.
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