Terms of Use An executor is the person responsible for settling a deceased person's estate. As executor, your duties include inventorying, appraising and distributing assets; paying taxes; and settling debts owed by the deceased. You are legally obligated to act in the interests of the deceased, following the wishes expressed in his or her will. If all this sounds a bit overwhelming, keep in mind that you can hire professional help-for example, an attorney to help with the probate pro  More...

Terms of Use A living will is really not a will at all because it doesn't provide for the disbursement of property. Instead, it is a set of instructions documenting a person’s wishes about medical care for use at the time when you are unable to communicate or make decisions. Everyone has the right to accept or refuse medical care. A living will protects your rights and removes the burden of making decisions from family, friends, and physicians. Living wills define your desire to eith  More...

--> Terms of Use: Any individual over the age of 18 and of sound mind is entitled to make a will. To be legal, a will must include the following : You must be of sound mind and legally an adult. The will should be typewritten or computer generated. Handwritten (or holographic) wills are not valid in all states, and should be avoided to ensure that all declarations in the will are read correctly. The will must expressly state that it's your will. You must date and sign the will. The will mu  More...

Terms of Use Paying the Debts of a Deceased Relative: Who Is Responsible? After a relative dies, the last thing grieving family members may expect are calls from debt collectors asking them to pay their loved one’s outstanding debts. According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, a surviving relative usually has no legal obligation to pay the debts of a family member who has died. In fact, the rights of surviving relatives are covered b  More...

Terms of Use: Power of Attorney is a legal instrument that is used to delegate legal authority to another. The person who signs (executes) a Power of Attorney is called the Principal. The Power of Attorney gives legal authority to another person (called an Agent or Attorney-in-Fact) to make property, financial and other legal decisions for the Principal. A Principal can give an Agent broad legal authority, or very limited authority. The Power of Attorney is frequently used to help in the eve  More...

Terms of Use Estate and Gift Tax Limits In 2023, estates of up to $12.92 million are free of tax. Anything above $12.92 million gets taxed on a sliding scale from 18% up to 40%. If you leave an estate behind that is less than that amount, the estate won't owe any federal estate tax. All property left to a surviving spouse passes free of estate tax. All property left to a tax-exempt charity is also free of estate tax. A husband and wife each get their own exemption. So each person can lea  More...

Terms of Use: Probate is the legal process of paying the deceased's debts, taxes and distributing the estate to the rightful heirs. Determination of when probate is required is determined on a state by state basis. Most states allow a certain amount of property to pass free of probate, or through a simplified probate process. In addition, property that passes outside of your will -- such as assets that are jointly owned or included in a living trust -- is not subject to probate. Probate u  More...

Terms of Use On the date of your death, if your estate exceeds the applicable exclusion amount, your estate may have to pay federal estate taxes. The exclusion amount depends on the year of death. If an estate is subject to federal estate tax, the net value of the estate (gross value of the estate minus debts, charitable bequests, and final funeral and medical expenses) over the applicable exclusion amount is taxed. There are several different methods to reduce estate taxes. Below are so  More...

Terms of Use Any will can be challenged for any reason. However, very few wills are challenged in court. When this occurs, it's usually challenged by a close relative who feels somehow cheated out of his or her rightful share of the deceased person's property. Generally speaking, only spouses are legally entitled to a share of your property. Your children are not entitled to anything unless you created the will before the birth of the child and it appears that you unintentionally   More...

Terms of Use A simple probate-avoidance living trust has no effect on taxes. However, more complicated living trusts can be used to significantly reduce the federal estate tax bill for people who have large estates. One example of a tax-saving living trust is designed primarily for married couples with children. This type of trust is commonly called an AB trust, credit shelter trust, exemption trust, marital life estate trust, and marital bypass trust. With an AB trust, each spouse leaves p  More...