Did you know your minor children can only inherit up to $10,000 without going into probate?
Use TOD – “Transfer on Death” to avoid probate court
Estate planning involves more than wills and trusts. Missouri, Kansas, and most other states have adopted Transfer on Death (TOD) laws to allow people to transfer property like, homes, cars, and bank accounts automatically on their death to their named beneficiaries, without the painful probate court process. TODs do not hamper lifetime ownership rights. We will help you assure the pension, retirement, and profit sharing plans properly designate beneficiaries and that property is correctly titled so your family, and you, avoid probate court.
Do you really want to pay Federal Estate Tax? It’s commonly referred to as the “Death Tax”, and can cost up to 20% of your total assets.
The Federal Estate Tax (death tax) exemption and tax rate are subject to frequent change by Congress. Please contact us for updated information on the amount of current exemptions and rates, and how to potentially avoid paying the Estate Tax entirely. When one dies with property in his or her sole name, that property must pass through the delays and costs of probate court. Heirs must open an estate, post a bond, notify creditors, document inventories, pay filing fees, pay attorneys’ fees, and spend large chunks of their own time.
If parents do not recommend guardianship to a person of choice, their children’s future could end up in the hands of a judge..
Everyone should have an estate plan, wills and trusts are particularly important for families with minor children. Wills provide for who raises the children if both parents are deceased. Otherwise, court hearings and potential family litigation ensues. Laws typically provide that minor children cannot own assets in excess of $10,000. Thus without a trust, the inherited money is supervised by the court with accompanying attorney’s fees and court costs. The Court may not allow expenditures that you would have chosen for your children. Equally problematic, when your child reaches the age of 18, he or she receives the entire inheritance without restrictions.
Trusts alleviate both problems by providing for your choice of the guardian who raises your children and a trustee who will invest the assets and distribute your children’s inheritance instructions. The guardian role disappears when the child turns 18 (the age of majority), but you can have your trustee continue to be in charge of the money until the child reaches a more mature age. The trust spells out for your trustee the expenditures you want made (e.g. braces, college) and restricts other expenditures (inherited money is notoriously squandered).
If you are married to someone but have separate children, the problems become particularly acute. Everyone also needs a durable power of attorney for health care, an HIPPA authorization (the right to see the medical records), and a durable power of attorney for financial matters. We also recommend that you keep a list of all your assets and their location.
The Quitmeier Law Firm can help you with estate tax issues if you have a large enough taxable estate, including life insurance. Please Contact Us for an initial consultation to discuss your family’s estate plan.
The Federal Estate Tax (death tax) exemption and tax rate are subject to frequent change by Congress. Please contact us for updated information on the amount of current exemptions and rates, and how to potentially avoid paying the Estate Tax entirely. When one dies with property in his or her sole name, that property must pass through the delays and costs of probate court. Heirs must open an estate, post a bond, notify creditors, document inventories, pay filing fees, pay attorneys’ fees, and spend large chunks of their own time.
