When one spouse passes, no estate tax is required to be paid to either the federal government or the Commonwealth of Massachusetts. This exception is called the “Unlimited Marital Deduction” because no matter the size of the estate, a surviving spouse will not have to pay death taxes upon the death of their spouse. This …
Estate Planning Blog
Estate Tax and Marriage
The Facts about Death Taxes
Federal and State Death Taxes – and Exemptions After your death, your family may be liable for federal estate tax and state inheritance tax. These taxes are in addition to any expenses you may have to pay such as probate and legal fees, and, under current federal law, can be between 41–55% of every dollar …
A Living Trust and Death Probate
A Living Trust is an excellent way to avoid the probate process, whether you’re still alive or have passed away. In a Living Trust you’ll transfer the title for all of your assets out of your name and into the name of the Trust. This is done by changing the name on the deeds to …
Joint Tenancy and Death Probate
There are cases in which Joint Tenancy can help avoiding Death Probate. For example, if one person in a married couple dies, anything they owned in joint tenancy passes automatically to the surviving spouse. But when that surviving spouse dies (or if they both die at the same time), the entire estate is required to …
Problems with Probate
Probate is Lengthy and Time-Consuming Probate can be a very long and arduous process for your family. It usually takes at least eighteen months to complete; in some cases, probate proceedings go on for years. Even under the best circumstances, it’s almost impossible to fully process an estate through probate court in under twelve months …
More Disadvantages of Death Probate
Death Probate has several other serious disadvantages: Your family loses control of your estate and cannot sell assets, or use estate cash to purchase assets, without the court’s permission. Opportunities to buy, sell, or transfer assets may be lost to the slow-moving court proceedings. Many families suffer emotionally during the probate process because the court …
The High Cost of Death Probate
According to a recent national survey, the average cost of Death Probate is typically between five and ten percent of an estate’s gross value. Of that amount, around 60% goes to pay attorneys’ legal fees, while the rest goes to pay personal representatives, and other costs. Every state has a different method for calculating probate …
Disadvantages of Death Probate
Death Probate is the court process of distributing and managing an estate after your death. Even if you have a written will, it must go through the probate process. Debts need to be paid, and assets need to be distributed to your designees. The court takes care of these tasks for you. Simple as it …
A Living Trust and Living Probate
A Living Trust, if well written, can help you avoid the expense and lengthy process of Living Probate. There is a section in the Living Trust that lays out exactly how you want your estate and health care to be handled in the that event you’re unable to manage your assets yourself. Your fellow trustees …
Avoiding Living Probate
Probate court isn’t just for processing wills after death. If you become mentally disabled and can no longer make decisions about your own care (and how to pay for it), the court will appoint an agent to take over your personal affairs. That includes making decisions about your assets. This kind of “Living Probate” is …