Handout_Notes - Less charitable contributions under will or...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
HA 4422 Estate Planning Legal issues: Wills – what they can and can not do Living Wills Health Care Proxy Power of Attorney Titling of Assets and how they pass Regular ownership – through will Joint tenants with right of survivorship – automatically to survivor Beneficiary designations – to beneficiary Payable on death accounts (POD, TOD) – to beneficiary (Not all states have this option) Revocable Living Trust – no change, assets are in an irrevocable trust upon grantor’s death Irrevocable Trust – grantor’s death has no effect, the assets were no longer his/hers Probate – anything passing via will or state law goes through probate Estate Tax FMV of all assets at death (including life insurance policy amount) Less: liabilities Less: certain allowable expenses (attorney, executor, accountant, funeral expense)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Less: charitable contributions under will or beneficiary designation Less: transfers to spouse = Taxable estate Plus: life-time taxable gifts (up to 1 million) Calculate tax (graduated rates up to 45%) Less: Applicable Credit Estate tax payable “Applicable Credit Amount” (fka Unified Credit) Each US person has a unified credit. It is equal to the tax that would be due on a taxable estate equal to the tax-free estate amount in a given year. Gifts Up to (currently) $12,000 can be given to any one individual in any one year. Amounts over $12,000 are taxable gifts – file a gift tax return. Some things are not subject to gift tax: Direct payment of educational costs Direct payment of medical costs Payments to spouse Charitable Contributions...
View Full Document

This note was uploaded on 02/20/2009 for the course H ADM 422 taught by Professor Lhensley during the Fall '08 term at Cornell.

Page1 / 2

Handout_Notes - Less charitable contributions under will or...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online