Estate Planning

[longbow51]

Your checking and savings accounts should have a POD Pay On Death provision and not a beneficiary. Once you die the POD designee can present your death certificate and claim your account balances. Set those up where you bank. Or you could make a trusted person a co-owner of those accounts.

That's a great idea; thinking everything is in our trust, but will doublecheck.

Thanks much.

 

[homers]

Land, houses can have a step up in value if in a trust. Meaning significant tax saving to whoever inherited the property. If you bought a house for $100k, and is worth $1M when you die and is inherited, whoever inherited it will pay long term capital gains on $900k. If in a trust, the inherited get a step up, meaning $1M in this simple example. If sold afterwards, they pay long term capital gains on anything above $1M, not the original $100k. If they sold for a million the day after you die, it’s $1M tax free. Consult your CPA or estate.

 

[homers]

Just my opinion, but I would not include 401k or IRAs in a trust. Make sure those accounts have beneficiaries listed and the money transfers quickly, cheaply and easily.

 

[Big Fin]

Land, houses can have a step up in value if in a trust. Meaning significant tax saving to whoever inherited the property. If you bought a house for $100k, and is worth $1M when you die and is inherited, whoever inherited it will pay long term capital gains on $900k. If in a trust, the inherited get a step up, meaning $1M in this simple example. If sold afterwards, they pay long term capital gains on anything above $1M, not the original $100k. If they sold for a million the day after you die, it’s $1M tax free. Consult your CPA or estate.

Sorry, but that is wrong. Don't mean to argue, but I don't want people to think there is a difference in assets received via a revocable (Living) trust, or via a will, or from someone who died intestate (without a will or trust).

Whether in a revocable trust or passed to an heir via a will, a step up in basis to Fair Market Value at Date of Death will occur for the recipient. It doesn't matter if it is a Trust, a Will, or via state probate due to dying intestate.

Now, if someone receives the asset via a gift, they inherit the basis of the donor and they do not get a basis step up to FMV. Huge differences between gifts and inheritance.

 

[Sandbrew]

Ok, this is a super uncomfortable exercise for me, in that Im asking for help. This despite the ridiculousness of my season with dsnow9 and all the help I ended up needing.

A young and very healthy friend of ours passed away today and it was very eye opening. One, because he passed at such a young age AND two, because Jenny and I have yet to set up anything. This even though we are both having surgery, including one major surgery this year.

What I am hoping for is advice on what we should ask our estate / trust attorney in order to set each other and our daughter (worst case scenario) up for the easiest process. In addition to potential life insurance we have a couple of fully paid for properties and want to reduce as much red tape as possible.

Any advice would be more than appreciated

Sorry to hear about your loss. It's eye opening for sure. PM me - there a good Estate attorney right off 285 that I've used and will continue to in the future.Sandbrew

 

[SilentBirdHunter]

I assume since we are no longer Alaska residents and now Montana residents,
we have to find an estate attorney and re-do our will, medical power of attorney and power of attorney?