Do you know the answers to the following questions? They cover four circumstances that can affect the size of your estate and the inheritance of some beneficiaries.
Do you have a mortgage on property you own? If so, which funds from your estate will be used to pay the debt?
Can your assets easily generate cash? Your estate may be forced to sell some of its assets if cash is needed to satisfy an outright bequest or pay a debt. Keep in mind that property—such as real estate—takes time to sell and may not generate the sale price you would have liked for your heirs.
How are your assets owned? Assets you own jointly (typically with your spouse) with right of survivorship pass to the surviving co-owner at your death and, eventually, to whomever is designated through the surviving co-owner's will.
Are you currently the life beneficiary of an annuity or a trust? Unless you can name later beneficiaries to take effect upon your death, your heirs may be unable to inherit these assets.
If after reviewing these questions, you feel uncertain about how to answer any of them, a visit to your attorney's office may be in order.
If part of your plan is to leave something for Meals-on-Wheels of Johnson & Ellis Counties, we would be happy to provide you with tips on tax-wise methods of passing assets to Meals-on-Wheels. Simply contact Vinsen Faris at 817-558-2840 or 972-351-9943 or vinsen@mowjec.org.
The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.
