What is Estate Tax?
Estate tax is a tax paid on the total value of a deceased person’s estate. The assets that can make up an estate include money, real estate, property, financial accounts, collectibles, and other assets. This value is calculated after the person passes away, and other factors like debts or credits can reduce the estate’s total […]
What Are the Biggest Challenges After Receiving a Sudden Windfall?
Receiving sudden wealth can come from many different sources. From winning the lottery to inheriting money from a distant relative, a sudden windfall can bring as many challenges as it does opportunities. Many people who come into sudden wealth aren’t sure how to manage it, which can lead to that money running out much faster […]
What is a Dynasty Trust?
A dynasty trust is a type of long-term trust created to pass wealth down to multiple generations. The main advantage of a dynasty trust is that it can avoid transfer taxes, like the estate tax, gift tax, and generation-skipping transfer tax (GSTT). Individuals choose to create dynasty trusts to pass on their wealth for many […]
What is a Living Will?
Despite their similar names, a living will and a last will are two vastly different legal documents. A living will, also known as a healthcare directive, dictates an individual’s wishes about the medical treatments they would like or would not like to receive. For instance, an individual could specify that if they become brain dead, […]
What is a Testamentary Trust?
A testamentary trust is a trust created in a last will and testament. The creator of the trust, also called the grantor, leaves instructions in their will about how their assets should be managed by a trustee and distributed to beneficiaries. After the grantor’s death, the trust establishes itself, hence the name “testamentary.” Many individuals […]
What is a QTIP Trust?
A QTIP trust, or Qualified Terminable Interest Property trust, is a type of irrevocable trust that is often recommended for blended families. A QTIP trust provides security for your surviving spouse as well as any children from a previous marriage. In most cases, the QTIP trust is created by the wealthier spouse or the spouse […]
What Are Digital Assets?
Digital assets are any assets that are stored digitally. They can have monetary or even sentimental value and may be stored online, on a mobile device, or on a computer. The most common digital assets include the following: Cryptocurrencies Blog content Online bank accounts or brokerage accounts Pictures and digital documents Subscriptions Music, video, and […]
What is an Executor?
An executor of a will or estate has been chosen to carry out the deceased individual’s final wishes. This could include donating to charity, paying outstanding debts, making funeral arrangements, and more. In most cases, the executor is chosen by the writer of the will before they pass. If there is no executor named in […]
What is a Qualified Personal Residence Trust (QPRT)?
A qualified personal residence trust is an irrevocable trust that allows the creator to remove a property from their estate. This is done to reduce the gift tax associated with assets when transferring them to a beneficiary. With this trust, the owner of the residence can remain living on the property with a retained interest […]
How Does a Dynasty Trust Work?
If you are interested in long-term wealth planning, you may have heard of a dynasty trust. A dynasty trust is an irrevocable trust that can extend between generations. Typically, a grantor will transfer wealth into a dynasty trust to create it. Once the grantor dies, the trust is divided into sub-trusts, and each one supports […]
