Estate Planning: Trust May Be Better Than Quit Claim Deed
When an elderly parent wants to pass along a property to a child, a trust may be the better choice in order to avoid probate and an increased cost basis. Some families think about using a quit claim deed, which allows the owner to sign over all ownership and financial interests in a property. Using a quit claim deed means the recipient receives the property at the original cost basis which could lead to high capital gains taxes upon sale.
Things To Consider When Drafting Last Will And Testament
Writing a will - documenting your last will and testament - is an important part of estate planning. When you write a will, you ensure that your funds, property and personal effects will be distributed after your death according to your wishes. It's important to think carefully of all possible scenarios when estate planning to avoid a legal mess.
Baby Boomer Trends
With more than 70 million baby boomers heading into retirement over the next generation, developers are trying to figure out what kind of homes they're going to want to buy. Many boomers are demanding more -- and different -- housing choices. Baby boomers expect developers to provide recreational amenities like well designed work out rooms and conveniences like an in-building dry cleaner.
Banks Get Involved With Patriot Act
Tracking terrorists and money laundering has become an important part of what banks do every day. Under the Patriot Act, banks have been required to ask their customers more questions about who they are, what they do and how much money they expect to deposit each month. Also, banks are now required to check their customers against a list of possible terrorists. However, it's the consumer and small business owners who pay the price of complying with the Patriot Act, usually through higher fees.
Adding Minor To House Title
A family wants to add their daughter, a minor, to the title of their home. Because she is a minor, the daughter cannot own the home directly, but can own a piece of it through a trust, which can be set up through careful estate planning. A custodial account could be set up for the daughter as part of the family's estate planning.
Estate Planning: Joint Tenant Ownership Of Parent’s Home, Or Will Estate Later?
Should you add your name to your parent's house as a joint tenant or whether the home should be provided for in the will as part of your parent's estate planning? Ilyce explains what would happen if you became a joint tenant, such as whether the IRS would levy a gift tax, as the make estate planning decisions. Ilyce outlines several options as far as estate planning, joint tenant ownership, and whether you should purchase the home from your parent and apply for your own mortgage.