You may not have gotten around to creating your estate plan yet, but hopefully you know how important inheritance planning is to you and your loved ones. If you have decided that now is the time to get started with your plan, you will need to ask yourself some important questions related to inheritance planning first. Who will be the Executor in your Last Will and Testament? People often make the mistake of simply appointing a spouse/adult child/parent as the Executor of their Will without … [Read more...] about 10 Questions to Ask Yourself When Inheritance Planning
Like many people, one of the primary goals of your estate plan is to ensure that your loved ones are well provided for after you are gone. You likely worked hard all your life, saved wisely, and invested prudently in the hope of being able to pass down a decent sized estate to your loved ones. Naturally, you would not want to see the value of your estate diminished after it is passed down. Consequently, you may be concerned that your loved ones will have to pay an inheritance tax on the gifts … [Read more...] about Will My Loved Ones Have to Pay an Inheritance Tax?
For most people, the primary goal of estate planning is to make sure that loved ones are taken care of after they are gone. If that is one of your primary estate planning goals you undoubtedly want to ensure that the full value of the assets you leave behind is passed on to your beneficiaries. With that in mind, you may be wondering “Is the inheritance you leave behind taxable?” The simple answer to that question is that as a general rule no. If you live in Illinois and your assets are less … [Read more...] about Is the Inheritance You Leave behind Taxable?
We are at the beginning of the largest transfer of wealth the United States has ever seen. Experts predict that trillions of dollars will be passed from one generation to their designated beneficiaries over the coming decades. Those same experts also warn us that the beneficiaries of that wealth are ill-prepared to handle it. In fact, they are so ill-prepared to handle their inheritance that one in three is expected to run through their entire inheritance within two years of receiving it. If you … [Read more...] about Will Your Loved Ones Blow the Inheritance You Leave Them?
Usually, a phone call or letter indicating that you have been left an inheritance is welcomed. However, there are situations in which you might not want to accept an inheritance. If you find yourself in that situation, can you reject an inheritance? The answer is ‘’yes”, you can reject and inheritance, but it is more complicated than simply telling the executor you don’t want it. There are an endless number of reasons why someone might want to reject, or disclaim, an inheritance. The most … [Read more...] about Can You Reject an Inheritance?
Leaving a lump sum of money or valuable assets to a beneficiary who is still relatively young is almost always asking for trouble. Regardless of how mature and intelligent your 20-something child or grandchild may be, putting a large sum of money in his or her hands all at once is a recipe for disaster. Financial wisdom is something that is almost always gained with age and experience. The best way to gain that experience is to dole out small amounts to your beneficiary over a number of years so … [Read more...] about Why You Should Consider Staggering the Inheritance You Leave Behind
The death of a close family member or loved one is typically followed by a period of grief and heightened emotions. At some point, however, the practical aspects of the death will need to be addressed, such as the need to probate the decedent’s estate. If you expect to inherit from the decedent’s estate you may also start wondering “How do I know what my inheritance is?” Though it is perfectly understandable to want to know the answer to that question, people are often reluctant to ask anyone … [Read more...] about How Can I Find Out What My Inheritance Is?
If you have worked hard all your life and managed to amass a moderate to large estate as a result, chances are good that you plan to pass that estate down to future generations. To ensure that the assets you pass down are protected, and sometimes to protect beneficiaries from being their own worst enemies, you must use caution when deciding how to pass down your estate. Specifically, you should consider staggering the inheritance instead of gifting it in one lump sum to beneficiaries. … [Read more...] about Why Staggering the Inheritance You Leave behind Is a Good Idea
Have you ever heard the phrase "stretching your IRA"? Here's the not-so-little trick it refers to: If you inherit an IRA, it's not only possible for you to "stretch your payments out" over the course of your lifetime, but with adequate assets and planning, your beneficiary can actually do the same after your death. The whole process starts with your decedent’s beneficiary form. If anyone other than the decedent’s spouse inherits the account, they are legally required to begin taking … [Read more...] about Stretching Your IRA in Illinois
If you recently received an inheritance you are likely feeling mixed emotions. On the one hand it is probably nice to know that someone cared enough about you to leave you a gift but at the same time the gift-giver is no longer with you or you wouldn't have received the gift. Once you get over the emotional turmoil an inheritance usually causes you may start to consider some of the pragmatic issues surrounding an inheritance. Who pays the tax on an inheritance, for example? At the federal … [Read more...] about Quad Cities Illinois Inheritance Tax: Who Pays the Tax on an Inheritance?