If I Named 1 Person As The Beneficiary On My 401k Account, But Changed My Mind and Want To Designate Someone Else While Writing My Will, Will My Will Take Precedence?
Video Summary
If I name one person as the beneficiary on my 401K account but change my mind and want to designate someone else while writing my Will, will my Will take precedence over the designation of my 401k? The answer is no. A 401K is basically a contract, which has a designated beneficiary on it, and must. And if you’re married, you must name your spouse, and otherwise the provisions of the 401k agreement, our participation agreement, that is drafted or provided to you by your employer, that’s going to control your Will. The Will only controls assets that are just titled in your name alone, so that if there’s a designated beneficiary on a bank account, that’s going to control over your Will. So the assets that are just in your name, are controlled by the Will. All your other assets that have designated beneficiaries are con controlled by contract, so no, your Will will not modify the provisions of your beneficiary of your 401k. If you have any questions, give me a call at (727) 847-2288
Are My Assets Protected If I Place Them In A Trust?
Video Summary
Are my assets protected if I place them in a trust? No. This is a often cited myth that if you transfer your assets into a revocable trust, that you prepare for a state planning purposes, that they’re protected from your creditors. The law is that you, if you control the asset, which you do in a revocable trust, that a creditor could then still reach those assets. So that is not a method by which you can protect your assets. So, if you have any questions about doing that, please give me a call at (727) 847-2288.
- Published in Estate Planning, Probate, Trusts, Videos
Do I Have To Pay Income Tax On Money I Receive From An Estate?
Video Summary
Do I have to pay income tax on the money I received from an estate? The answer is no, you don’t, unless the money that you are receiving was interest, or other income from the sale or generated dividends or from estate assets. So let, if there’s a bank account, in the decedent’s name, I’ll say a hundred thousand dollars, and, and then that’s distributed to you, it’s cash. So there’s no income tax that you have to pay on that money. If there is a piece of real estate involved and the property is then sold, and then you get a portion of the sales proceeds of the from the sale of the real estate again, you don’t have to pay any income tax on it. If the property was sold for the same value as what it was at the time of the decedent died, that’s called a step up in basis, under the probate code. And, what that means is that when someone passes away, the Internal Revenue Service values, the property here says your basis or what you have to pay tax on is based upon the value as of the date of death versus the sales price. So, if the property is sold shortly after someone dies, then there’s not going to be any tax that has to be owed. If the property was not sold shortly after the person dies, it’s many years later, then you need to establish the value as the date of death and then subtract that from the amount that is sold. And then you would have to pay long-term capital gains on a portion of that. Sometimes you may receive dividends from stock that’s in the estate and that’s usually shown to you through a fiduciary tax return. And it’s called a K one. That’s many times offset by the attorney fees and cost. Of course this is, you know, it’s very specific because if you have a very large estate with lots of money coming in, well that would be one thing. Or if it’s a very small estate, then probably you’re not going to wind up having to pay any income tax on this. And the same things go if you get life insurance. You don’t have to pay on the death benefit if you receive some interest that had accumulated on the cash surrender value of the life insurance, well that is taxable income to you. Same thing with annuities that you have to pay tax on that money that you receive. Same thing with IRAs and 401, if you have any questions, give me a call at (727) 847-2288.
- Published in Estate Planning, Probate, Videos
If My Husband Dies, Do I Have To Pay His Medical Bills?
Video Summary
If my husband dies, do I have to pay his medical bills? The answer to the question is no, you do not. That is unless you have signed to be responsible, uh, for his medical bills. So whenever, if you do lose your spouse you do not have to pay their medical bills. Most of them are usually covered by insurance, but you’re not personally responsible to pay them. If you have any questions, give me a call at (727) 847-2288.
- Published in Estate Planning, Probate, Videos
What Happens When You File a Claim Against a Probate Estate?
Video Summary
What happens when you filed a claim against a probate estate? Well, once you file your claim, it has to be filed within three months of the date of the notice accreditors within 30 days of the date that you received the notice if it’s past the 30day period. And the personal representative by statute has an additional month after the three-month period expires before they’re obligated to start paying these claims. A lot of the payment of the claims depends on whether or not the estate is solvent and whether or not they’ve been able to collect the bank accounts, in order to be able to have the money to pay. The claims are not all created equally. There are expenses of the estate in claims, and there’s a priority of which expenses and claims get paid first. At the top of the list of expenses is the, the attorney fees for handling the probative of the estate and the executor’s fee and handling the estate. That’s the number one. Those get paid first. Secondly, it’s the funeral bill or reimburse whoever pays for the funeral bill as the next category of claims that get paid. The third one, are medical expenses and medical bills that were incurred in the last 60 days before the decedent passed away. Credit card bills and other bills are on down the list as far as the priority of payment, but if there’s sufficient money to pay all of this, the estate administration takes anywhere from six- nine months to a year, depending on the circumstances of the estate and the look and the liquidity. If you have any questions concerning this, give me a call at (727) 847-2288.