Tips for Giving and Receiving Inheritence Property
Inheritence can be a complicated matter. There is paperwork to file, taxes to pay and occasional family battles to contend with. If a person dies without leaving a will, inheritence property can be tied up in probate court for quite some time.
Even if inheritance property is listed in a will or living trust, it must still go through probate to ensure its validity. A probate judge reviews the deceased's estate, notifies beneficiaries and verifies assets. If there are debts associated with the estate, they must be settled prior to disbursement of inheritence property.
If you don't want your loved ones to jump through hoops to obtain the inheritence you wish to leave them, you'll need to set up a revocable living trust and execute a will. Property transferred into a living trust is exempt from the probate process. Inheritence property and assets are transferred to named beneficiaries upon death.
Many people procrastinate when it comes to preparing for death. However, if you do not designate who you want your assets transferred to, probate court will make the decision for you. Chances are it won't be the decision you would want. It's not difficult to draft a will and living trust and takes little time. If you haven't already done so, consider taking care of this soon.
When you receive inheritence property it's important to pay state or federal inheritance taxes in a timely fashion. Inheritance taxes are governed by each individual state. Some states do not impose inheritance taxes at all. If you reside in a state that imposes inheritence tax, the amount of tax you pay is based on the fair market value of the property.
Inheritence property is subject to federal taxation when an estate is valued at $2 million or more. Due to the complexities and variations of inheritence laws and tax rates, it's best to consult with an attorney.
If you are the recipient of a cash inheritence, instead of going on a spending spree, start investing. Don't jump in blind. Take time to develop an investment strategy that can help you reach your financial goals.
There are many types of investment opportunities including certificates of deposit (CDs), money market accounts, annuities, stocks, bond, mutual funds, and real estate. Start by conducting research via the Internet or attend investment seminars. A word of caution - investment information can be found for free. Be leery of companies charging large sums of money for investment opportunities.
Whether you are giving or receiving inheritence property, it's best to be prepared. Both the giving and receiving of inheritence can change people's lives. You want to make certain you have your ducks in a row in order to fully benefit from the gift.
Be smart with your inheritence decisions. Doing so can make things much easier on all parties concerned. Most lawyers can draft a will and living trust for a nominal fee. It requires little time unless you have a considerable amount of assets and numerous beneficiaries.
If your inheritence property is tied up in probate and you are in need of cash, Simon Volkov would like to talk with you. Instead of putting finances on hold, heirs are able to sell their inheritance for a lump sum cash payment through a funding company such as SimonVolkov.com.
If you want to cash out of your pending inheritence, fill out our secure Inheritance Form. (http://www.simonvolkov.com/forms/cash-for-inheritance.html) We'll be in touch within 48 hours.
Published on November 03, 2007 at 12:56 PM