REF- Estate Tax Exemption Increased for 2023 - Anchin, Block & Anchin LLP
Most Americans (even in this group) likely are not concerned about federal estate tax (unless rules change dramatically, which I suppose could happen someday). State estate taxes could be relevant, depending on amounts and location.
In recent years, about 3 million people in the US die every year, but only about 2,000 leave estates subject to federal estate tax. So it is really something that fewer than 0.1% need to worry about.
Even in states that levy an estate tax (and/or inheiritance tax), usually there is exempted amount… .and rate not too bad
Quick glance. The article’s description of the estate tax in Massachusetts may be a bit misleading. Massachusetts has a $1 MM floor. But, once your estate exceeds $1 MM, the estate owes tax starting at the first dollar. And, given home prices in Massachusetts, it would be easy for an estate to exceed $1 MM. The tax goes up to 16%. If the person had a home and any kind of qualified savings plan, it would not be hard to get to $1 MM.
@Colorado_mom, I looked at QTIP trusts a while ago, I think before ShawWife become a US citizen. In addition, IIRC, you might use a QTIP trust in the case of a multiple spouses. If one had kids with the first marriage and then remarried a spouse who had kids from a prior marriage and one wanted to give something to the second spouse but reserve the rest for one’s kids, I think a QTIP trust might be a useful vehicle. But those with more knowledge can correct me here.
Bumping this thread up b/c we are seriously overdue for updating our wills and trust and advanced directives, and my sister-in-law, who is single/never married/no kids is not good health and is expecting my DH to handle her estate, but the way she currently has it set up it will get tied up in probate and will be a massive nightmare for DH. She claims she wants to make it easy for him but it’s the exact opposite right now. She says she’ll get around to it but it’s worrisome that she keeps putting it off. I have finally gotten my DH to make an appointment with the attorney here to update our stuff (I told him that’s what I want for my birthday) and he claims that when we do ours he’ll feel more equipped to help his sister (though our situations are very different). I suggested that he fly out to be with his sister if/when she ever makes an appointment to meet with an attorney. Her comments to me are so unrealistic it’s scary.
She wants to leave everything to her nephews b/c she doesn’t want the other brother (the moocher) to piss away her money, so his kids and ours and her godchildren will get it. She needs to probably create a trust and put her house title in the trust so it can be managed by DH. There is one nephew (other brother’s oldest) who has never launched and is on the spectrum and the other brother will use that son’s money if sil doesn’t set up something to protect that. And if he ever goes on disability the inheritance, if there is any left, can affect what he would qualify for, I believe. I realize this is all vague and subject to individual circumstances, but any things DH and sil should be aware of?
Putting off difficult ‘death’ decisions until tomorrow – which never comes – is common. But if Sis doesn’t want to engage with death planning, your H can just step out and say, ‘sorry, not gonna be your Personal Representative’.
Probate hassles, or lack thereof, depends on the state. Some are rather quick, easy and inexpensive to process a will. Others, like California can take months just for a hearing. (And that is big reason why many homeowners in CA have a Trust.)
At a minimum, Sis needs a Will and should set up her financial accounts as PoD/ToD. Some states allow a personal residence to also be ToD so a Trust may not be needed to sell the house upon her death.
We just updated everything. Our lawyer specializes in estate planning, etc. We took her advice along with what our financial planner suggested.
Really…sit and listen to a professional. Make a list of questions. They should be very willing to answer your questions and discuss options. If not…move on to someone who will.
Good idea to have more than one set of ears at any meeting to get these tasks done.
She needs to get her butt to an attorney and set things up correctly. Not sure who the house would transfer to on death, and her accounts would freeze so the utilities wouldn’t be paid. She did her previous Will in some free online website. Not thinking that was the best plan, but better than nothing.
Depends on the state, but even a simple Will thru an online program such Willmaker can be valid, assuming its Witnessed appropriately.
Utilities are the last thing to be concerned about. They’ve been thru this before and have an internal process to keep the lights on. (The PR just calls and says, ‘send all future bills to me until we dispose of the house’.). Ditto credit cards; by law, they have to stop all interest compounding as of date of death. (And they know they are last in line to get paid.)
Hope so, bu when moocher BIL finds out he doesn’t get anything, the poo will hit the fan
That’s why she needs a Will, preferably drawn up by a Estate/Trust attorney, to make sure moocher gets nothing.
EXACTLY!! But it is taking a crowbar to get any movement. Moocher will “control” adult/spectrum kids money unless she directs otherwise. He will spend it on himself and then spectrum kid will have nothing.
Many estate attorneys will meet client at the client’s house or even McDonald’s or wherever client wants. No need for client to go to atty’s office. Brother should clearly explain that things as they are will mean funds will not be allocated as sister wants, with govt taking a huge chunk in probate expenses and the kids likely getting very little.
Depends on the state. Actual Govt probate filing fees – as opposed to Attorney’s/Trustee’s fees – in CA are not much, but it can take months to get a hearing. Other states are both inexpensive and quick.
True—each state is different but probate can tie assets up for a while and still sone funds are expended to places other than intended beneficiary whenever private is involved.
Something I read once that makes perfect sense to me is to name the BIL and leave him some pittance so that it’s clear she did think of him (just not much) and that his not being named wasn’t an oversight, as he could claim in court.
You mean when a person dies intestate, i.e., w/o a Will, so the court-appointed Representative makes all the decisions?
Or, just mention in your will, “I leave nothing to my nephew, the moocher.” Again, much safer to have an Estate attorney write it for your state.
Not to hijack the current question but does anyone know how to transfer a car after death if you wouldn’t otherwise have to go through probate? My sibling and I are TOD on my mother’s brokerage account and I’m on her regular bank account. It’s highly unlikely we’ll fight over personal belongings so not worried about that. She owns no other property except the car. Again there will be no fighting over who gets it - it’s not worth much so presumably we will either sell it or a grandchild will take it - but I’m wondering about transferring the title. Would we have to probate just for the stupid car? I assume if she added me as a co-owner now there would be insurance repercussions?