Gift Giving in 2010 Can Mean Smart Estate Planning

It’s the season of giving, and because the estate tax repeal is still in place in 2010, you can gift your loved ones lower estate taxes. The current tax rules mean that no estate taxes will be applied to people who die in 2010. The estate tax laws that were passed in 2001 are still in place in 2010, but those will expire at the end of this year. No one knows what the new tax rates are going to be next year. While you may not be able to predict what will happen in 2011, you can make cash gifts to your grandchildren and great-grandchildren this year to reduce the size of your estate and taxes.

For instance, you can gift your grandchildren up to $13,000. These can be gifted to a number of people, and the gift is not taxable. However, you can gift only up to $13,000 to one person.

2010 is also the right time to gift real estate. For instance, there is now an exemption of $1 million in place. You can use the exemption to gift property to your grandchildren or other heirs right now, rather than letting it pass on to them after you. The real estate gift will still be eligible for a 35% gift tax. However, consider that the gift tax rate could possibly jump to 55% in 2011. In any case, California estate planning attorneys don't expect your gift tax rate to drop below 35% next year.

Obviously, there's no way to accurately predict what the federal government will do in 2011. It's very important to consider your options, and speak to a California estate planning lawyer before you make decisions about your estate. About one thing there is no doubt - 2010 is a very good year for estate planning purposes, and you must take full advantage of this.

What to do when your parent dies without a will

Dealing with the death of a loved one is a traumatic experience. It is a time for mourning a loss and remembering the person for who they were in life. There are many matters that need to be handled shortly after a person's passing but dealing with complex legal issues is not on the top of most people's list. Unfortunately if you don't plan ahead, that is exactly what you'll be involved with at this emotional time.

Planning ahead can save you or the people you leave behind a lot of anguish, time and money. What happens if you or a parent dies without a will? Depending on the assets and many other issues it can be very complex. Without a written contract your assets and final wishes may not be carried out as you wish.

Who should have a will? The answer may surprise you. Most people should have a will. It's not just for the wealthy person who is deciding which family member is going to get the home in Florida. If you own a home you should definitely have a will. What about your savings, 401K or vintage collection of baseball cards? No one plans on dying without taking care of their estate, so do your loved ones a favor and save them a little extra "grief".

So, what do you do if your parent passes away without a will. Those questions are best left to a qualified attorney. Follow this link to a website that has lots of great information on Estate Planning. It even has several videos that will help you to understand the process.