Parents naturally tend to think that since they love their children equally it makes sense to set up an estate plan that distributes assets equally. As some Kent business owners may have already considered, equal distribution of estate assets may not necessarily lead to desirable results when the bulk of the estate consists of illiquid business assets. An equal distribution of business interests among heirs may instill resentment in those who have played an active role in building the business toward those who have demonstrated less interest.
Many Kent business owners may hope and expect that ownership and operation of the family business will be passed on to children after retirement or in the event of death. While in some cases business interests will pass smoothly to children under default probate laws, a number of different factors can lead to unexpected and undesirable results. Business owners who take the time to establish a solid succession plan can enjoy greater certainty about the future of their businesses and potentially take advantage of opportunities to reduce inheritance tax liabilities at the same time.
All the attention paid in recent days to the impending expiration of current federal estate tax exemptions may have some Seattle-area residents feeling stressed out about estate planning concerns. Fortunately, effective estate planning for most Americans need not be overly stressful or expensive. Something as simple and common as life insurance can go a long way toward easing concerns over estate taxes.
Article Source: lifeinsurancequotes.org
Kent readers may be aware that the current $5 million federal estate tax exemption is slated to expire at the end of this year. The impending end of the hefty exemption has spurred an upswing in the popularity of a little-known form of life insurance that can play an important role in a comprehensive estate plan.
Kent residents may have heard the tragic story about a man who set fire to a rental home in the town of Graham, killing himself and his two children. With the man's wife having been missing since December 2009, the woman's parents turned to the Washington courts for authority to oversee the administration of her estate. The court relied on a probate law aimed particularly at missing person cases in order to appoint the parents as special estate administrators.
As many Kent residents know, the loss of a loved one brings not only grief but also a host of challenging responsibilities. People who are charged with the duties of wrapping up a loved one's worldly affairs may benefit from the assistance of compassionate legal counsel during a difficult time, but there are always tasks that heirs need to perform independently. Kent residents may want to consider taking some simple steps during life to help expedite the process of estate administration and reduce the complexity of probate proceedings.
Readers in the Seattle area may take a lesson from an unfortunate tale that left one man's wife grieving while his ex-wife harvested a $1 million windfall. In a case of tragic oversight, the deceased man never followed up to change the beneficiaries of his lush retirement account and life insurance policy. The result of this all-too-common error undoubtedly sabotaged the man's wishes for his second wife and highlights the importance of competent estate planning early in life.