Estate Planning

IN STATE OF CALIFORNIA

+ ESTATE PLANNING HOME

FUNDAMENTAL OF ESTATE PLANNING

+ TRANSFERRING PROPERTY AT DEATH

+ WILLS

+ LIVING TRUST

+ SAME SEX UNMARRIED COUPLES

+ FACTS ABOUT ESTATE SETTLEMENT

+ POTENTIAL ESTATE TAXES

Which assets should they inherit?

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You may want to consider special questions when transferring certain types of assets:

  1.  If you own a business, should the stock pass only to your children who are active in the business? Should you compensate the others with assets of comparable value?
  2.  If you own rental properties, should all beneficiaries inherit them? Do they all have the ability to manage property? What are the cash needs of each beneficiary?
  3.  When and how should they inherit the assets?

When and how should they inherit the assets?

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You need to focus on factors such as:

  • The potential age and maturity of the beneficiaries
  • The financial needs of you and your spouse during your lifetimes
  • The tax implications.

Outright bequests offer simplicity, flexibility, and some tax advantages, but you have no control over what the recipient does with the assets. Trusts are more complex, but they can be useful when heirs are young or immature or lack asset management capabilities. They also can help save taxes and protect assets from creditors.