When would I need and estate or a trust? This is such a good question!
A person’s estate is about their property owned at death. If they have a Will, that document states who inherits the estate. If they pass without a Will, state law determines who inherits their estate. In both cases, if they have enough assets, a probate court must supervise the settling of the estate.
A trust is a legal agreement in which a person states that one or more people hold the person’s assets for certain people (called the beneficiaries) subject to certain duties and the terms of the agreement. The most common type of trust is called a revocable living trust, but there are others.
Now you are wondering how do taxes fit into all this? This is another great question!
Your estate will have to pay federal estate taxes if its net value when you die is more than the exempt amount set by Congress at that time. This is something your accountant or tax preparer can research for you.
Estate taxes are different from and in addition to probate expenses, which can be avoided with a revocable living trust, and final income taxes, which must be paid on income you receive in the year you die. … Because few estates have the cash, it has often been necessary to liquidate assets to pay these taxes.
If you are looking to draft a Will, Estate or Trust or need guidance through probate court we work with an attorney Stephen Walker ph: (602) 540-6803 www.spwalkerlaw.com/