March 7, 2016
by Raleigh Lawyer
Comments Off on Marital Trusts, Continued

Marital Trusts, Continued

As we mentioned in our previous blog post, The most common is a credit shelter trust, which is also known as an AB trust. It works for couples who may have separate assets that are going to different beneficiaries. The surviving spouse still has control over the trust until he or she dies. A marital trust is a way for couples to protect themselves from paying taxes on their assets should one of them die. It’s also known as an “A” trust. Today, our attorney in Raleigh NC is going to talk about another type of marital trust.

Marital Trusts | Attorney in Raleigh NC

Another type of marital trust is a qualified terminable interest property (QTIP) trust, which will transfer all assets to the surviving spouse, but he or she will benefit from the estate for life. These are usually chosen in the case of a second marriage so that the children from the first marriage and the current spouse will both benefit from the estate. What a person outlined in the trust will be followed once the second spouse dies. This can help ensure that changes are not made by the remaining spouse that may not be the wishes of the deceased.

A general power of appointment trust transfers the estate to the surviving spouse, but he or she is able to make decisions regarding it, such as selling property. He or she can also decide who the beneficiaries will be when he or she dies. The surviving spouse ultimately has complete control over the estate and how distributions will be made. Because of this it’s often called an unlimited marital trust. There is a second version of the marital trust, which puts limits on what the surviving spouse can do.

Under the power of appointment, a distribution outright clause can be added that states the surviving spouse will have full control of the property. But in some cases, the transferred estate could be subject to probate and could end up being taxable, which is what a marital trust aims to avoid.

Marital trusts can be an important tool in estate planning because without them there is no way to control what happens to your assets once you die. It can help ensure that your surviving spouse, children and other people you designate as beneficiaries receive what you have outlined.

Our attorney in Raleigh NC is here to help you understand this information if you need more information. You can also visit back with future blog posts, as we will also have more information about the various types of marital trusts.

Are you thinking of estate planning now, so that when the time comes, your affairs are in order and have representatives that will take care of them for you, should you pass in an untimely death or become incapacitated? If so, it might be time to contact our attorney in Raleigh NC.

Klish and Eldreth, PLLC

Contacting an attorney to help with estate planning will help you ensure that you include everything that’s needed for estate plans. Wills, trusts, power of attorney, and other things are important to include if they’re needed. Don’t hesitate to call to make an appointment, now.

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March 7, 2016
by Raleigh Lawyer
Comments Off on Marital Trusts

Marital Trusts

A marital trust is a way for couples to protect themselves from paying taxes on their assets should one of them die. It’s also known as an “A” trust. You might find this subject difficult to understand, as there are different types of this kind of trust. Our estate lawyer in Cary NC is here to help you better understand.

Marital Trusts | Estate Lawyer in Cary NC

When a marital trust has been established in a couple’s estate plan, they are able to take advantage of tax laws that allow assets to be transferred without being taxed. The property is deducted from the taxable estate of the deceased. Even if the property exceeds the estate tax exemption amount, the living spouse will not have to pay taxes.

They are able to do so under the unlimited marital deduction, which is a provision of the U.S. Federal Estate and Gift Tax law. Under the law, someone can transfer an unlimited amount of assets to his or her spouse without taxation.

Upon the death of a spouse, the assets are transferred into the trust. The surviving spouse has control of them until he or she dies, then it is passed on to the beneficiaries outlined in the plan.

There are several types of marital trusts that can be used depending on the couple’s situation. The most common is a credit shelter trust, which is also known as an AB trust. It works for couples who may have separate assets that are going to different beneficiaries. The surviving spouse still has control over the trust until he or she dies.

To learn more about marital trusts, stop by and visit with our blog again. We will talk about the various types of marital trusts. If you have questions or concerns, contact our estate lawyer in Cary NC.

Klish and Eldreth, PLLC

Do you have a current estate plan in place that hasn’t been updated in years? If so, it might be time to revisit it to ensure all information is valid and up-to-date. This task can be just as important as the initial creation of an estate plan. Don’t let things become outdated. Call today to start updating your plan.

Also, feel free to contact our office to schedule a consultation with us if you are looking for a lawyer to assist you. We are here to help you with all your legal matters, whether it be estate planning, trademarking, copyrighting, or DWI issues.

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March 7, 2016
by Raleigh Lawyer
Comments Off on Different Types of Marital Trusts, Continued.

Different Types of Marital Trusts, Continued.

Welcome back. Our attorney in Raleigh NC is here to talk further about the different types of marital trusts. It might be overwhelming to think about all the different parts of an estate plan. That’s why we are here to help you through. At any point, contact us with questions you might have.

Types of Marital Trusts | Attorney in Raleigh NC

Qualified Domestic Trust (QDOT)

If you have a spouse who is not a U.S. citizen, you could have trouble passing on your assets to him or her. In this case, you will need a QDOT trust. It will allow your surviving spouse to benefit from your estate while also deferring estate taxes paid on it. A QDOT has several guidelines that must be met in order for it to be effective, which are outlined by the IRS.

Credit Shelter Trust

A credit shelter trust, also known as an AB trust, can also be established in order to protect both the surviving spouse and the children of the deceased. When the first spouse dies, the trust is split into two separate trusts – Trust A, which holds the deceased spouse’s assets and Trust B, which contains the surviving spouse’s property. Technically, the assets from Trust A go to the designated beneficiaries, but in most cases, the surviving spouse has control of it. When the surviving spouse dies, the assets in Trust B go to the beneficiaries.

Remember, the common factor in any marital trust is that it allows you to defer any taxes paid on your estate through the marital deduction. The trust must meet the specific requirements of the IRS to qualify for it. You can consult with an attorney to ensure that you have created a plan that meets federal guidelines and that will help protect you and your family.

Our attorney in Raleigh NC is here to help you understand this information if you need more information. You can also visit back with previous blog posts, as we have more information about the various types of marital trusts.

Are you thinking of estate planning now, so that when the time comes, your affairs are in order and have representatives that will take care of them for you, should you pass in an untimely death or become incapacitated? If so, it might be time to contact our attorney in Raleigh NC.

Klish and Eldreth, PLLC

Contacting an attorney to help with estate planning will help you ensure that you include everything that’s needed for estate plans. Wills, trusts, power of attorney, and other things are important to include if they’re needed. Don’t hesitate to call to make an appointment, now.

Interested in learning more about estate planning now? Our attorney in Raleigh NC understands how overwhelming the process of creating a plan might be. However, read over the following blogs and contact our office to talk with us about your concerning issues. We can help.

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March 7, 2016
by Raleigh Lawyer
Comments Off on Different Types of Marital Trusts

Different Types of Marital Trusts

If you and your spouse want to protect your estate from being taxed when one or both of you dies, you can create a marital trust. It’s an estate planning tool that also allows you to provide for your spouse while he or she is still alive, and ensures that your children or other beneficiaries will also benefit from your estate. Below, our lawyer in Raleigh NC talks about marital trusts.

Types of Marital Trusts | Lawyer in Raleigh NC

Marital trusts are also known as “A” trusts. There are several types you can establish. Let’s take a look at a few of them to see how they may work so that you can decide if you want to include one in your estate plan.

General Power of Appointment (GPA)

This type of marital trust can be created to protect your surviving spouse while he or she is still alive. It provides income interest for life. The spouse also has power of appointment, meaning that he or she can make decisions about the estate. It is the least restrictive of marital trusts. There is a version of this type of trust that puts guidelines on what the surviving spouse can and cannot do. It is considered a limited power of appointment.

Qualified terminable interest property (QTIP)

QTIPs aren’t what you think they are. It’s a type of trust that allows the surviving spouse to be taken care of while he or she is alive, but it does not give them control over all of the assets. When the surviving spouse dies, what is outlined in the trust is carried out according to your estate plan. Usually, the assets are distributed to the heirs that you have designated.  This type of trust can be used in cases where someone has remarried but has children from a previous marriage.

The common factor in any marital trust is that it allows you to defer any taxes paid on your estate through the marital deduction. The trust must meet the specific requirements of the IRS to qualify for it. You can consult with an lawyer in Raleigh NC to ensure that you have created a plan that meets federal guidelines and that will help protect you and your family.

If you’re interested in learning more about marital trusts and the different types, be sure to visit back with our next blog post, soon.

Klish and Eldreth | Lawyer in Raleigh NC

Are you looking for a new lawyer? Call our office to see if we can help you with your legal matters. We work in business law, intellectual property, elder care, entertainment and media law, and more. We hope to hear from you to see if we are a good fit for your needs so that we can begin a strong and trustworthy working relationship with you. Contact our lawyer in Raleigh NC, today and make an appointment.

 

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March 5, 2016
by Raleigh Lawyer
Comments Off on Understanding Probate, Continued

Understanding Probate, Continued

Welcome back. our estate lawyer in Cary is here to talk more about probate so that you can hopefully understand it better. We know how overwhelming estate planning is, overall. Adding other things like probate can further your confusion and stress. Below, you’ll find more information that should help you better understand. If you still have questions at any point during this article, do feel free to contact our lawyer.

A second step is to alert creditors that they must make claims on debts during a certain period of time. The executor must give written notice to all known creditors. Sometimes there may be debts owed that are not documented anywhere. For that reason, many times a notification is put in the local newspaper to alert others that if there is a debt to be paid, it needs to be filed within a certain period of time. The timeline is generally determined by the state.

Then, the decedent’s property and other assets are assessed to see how much the estate is worth. In some cases, an appraiser may be hired to determine the value of non-cash assets.

Once the value is determined, the executor needs to use the estate to pay any debts owed. In addition to debts, if there are other bills and income taxes owed, they must be filed and paid. The decedent’s funeral expenses are generally also paid from the estate.

Once all of the decedent’s debts and bills are paid, the remainder can be distributed among the beneficiaries named in the will. If there is property, the titles and deeds are transferred to the beneficiaries. If the will states that a trust should be created for a minor, it is transferred to the trustee.

If there was no will, the guidelines set up by the state determine who receives the assets. Having a will that is properly drafted and updated when life changes occur can ensure that your assets will go to the people you chose rather than left up to the discretion of the state.

Our estate lawyer in Cary understands that this process can be quite confusing. Contact us to set up a consultation to talk about your current estate plan and further discuss probate and how you might avoid it. If you don’t have an estate plan in place, consider working with us to create one. For more information about probate, visit back with our previous blog post, as well.

Klish and Eldreth, PLLC | Estate Lawyer in Cary

Remember, if you don’t have an estate plan in place or haven’t reviewed yours in several years, now might be the best time to start. Our estate lawyer in Cary is here to help you get your estate planning in order and ready should you pass in an untimely manner or become incapacitated at some point. It’s better to be safe than sorry when it comes to an estate plan. Contact our office today to get started estate planning.

As always, feel free to contact us at our office to schedule a consultation with if you are looking for a lawyer to represent you in other legal matters. We are here to assist you with small business needs, trademarking, copyrighting and DWI issues.

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