| Transfer on Death Registration of Securities |
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| TOD or transfer on death registration of securities allows an investor to arrange for transfer of securities upon the investor's death without the necessity of having the securities go through probate. The executor or administrator of an estate does not have to take any action regarding specific securities that have TOD registration or even entire accounts that have been set up with TOD instructions.More... |
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| Estate-Tax Valuation -- Other Assets |
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| Life insurance on the decedent that is received by or for the benefit of the estate is taxed in the estate. (Note that many state death taxes do not require inclusion, or provide special partial exclusions for life insurance proceeds.) The amount should be the amount received by the beneficiary, including any dividends and premium refunds paid to the beneficiary.More... |
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| Trusts for the Disabled |
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| When a family includes an individual who is disabled, a special trust or special trust provisions should be considered to protect the financial interests of that person. Of course, the term disability can have a wide range of meanings. Generally speaking, reference is to individuals who would not be able to care for themselves or whose interests would be better served by retaining control and management of the disabled person's inheritance or other assets in a trust.More... |
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| State Death Taxes - General Issues |
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| Almost every state levies a tax at death. Many states impose an inheritance tax, which is imposed on the right to inherit property. This should be compared with an estate tax, which is a tax imposed on the right to transfer property. The distinction is important because an inheritance tax is levied on the share of each beneficiary individually and not estate as a whole. The importance of this distinction is that the closer the relationship to the decedent, the greater the exemption (if there is one) and the lower the rate of tax. For instance, some states don't tax transfers to surviving spouses while others provide a lower rate of tax for transfers to children, parents, or surviving spouses.More... |
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| Basic Trust Types and Formation |
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| A trust may be formed for any purpose that is lawful and not against public policy. More... |
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