LAW OFFICE OF STEPHEN CAVANAUGH
        What is an executor?

  • The executor files the will for probate, usually testifies in
    Court, locates all the estate's property, and then files an
    inventory of the property with the court. If necessary, the
    executor also files the estate tax return.

  • The executor must also pay the estate's legal debts, must
    give all beneficiaries a copy of the will and ultimately
    distributes the property to the beneficiaries.

         When do I need a trustee?

  • If you want to put your property in a trust,the trustee
    holds title to the trust's property, invests the assets, and
    distributes the principal and income of the trust to the
    beneficiaries. When children are under 18, they must have
    a trustee to handle their property.

         What are the duties of  a guardian?

  • There is a guardian of the person, who is responsible for
    the personal welfare of  a minor or other legal incompetent,
    and also sometimes a guardian of the estate, who is
    responsible for handling any property they might own,
    similar to the duties of the trustee.

         Why do I need a will?

  • To name the person(s) who will perform these duties, and
    specify who will inherit your property.

  • Is there another way to transfer my property?

  • Yes, with a revocable living trust, which becomes
    irrevocable at your death.

  • Will I have to pay taxes on the estate ?  

  • The estate tax has been repealed for the year 2010. However, in
    2011, it will return, and the maximum exclusion for all estates will be
    $1 million; the highest estate tax rate, after the exclusion,will be 55%.

  • Property passing from a decedent no longer receives a step-up in
    cost basis equal to the property’s fair market value as of the
    decedent’s date of death. The step up has been eliminated for
    persons who die in 2010;

  • The basis of property acquired from a decedent is  now the lesser of
    the decedent’s adjusted basis, or the property's fair market value on
    the decedent’s date of death.

  • However, the decedent’s executor or personal representative is
    allowed to allocate up to $1,300,000 to various assets owned by the
    decedent, increasing the cost basis of those assets.

  • An additional $3,000,000 of basis increase can be allocated to
    properties passing to a spouse or to a special "qualified terminable
    interest property" trust for the spouse. Under the 2010 tax laws, any
    person may give an unlimited amount of property to his or her
    spouse or to a QTIP trust (the "Marital Deduction") without
    generating any gift or estate taxes.

  • The Federal gift tax now has a lower 35% rate of tax, down from
    the 45% rate in 2009. Each person may give away during lifetime $1
    million in cash or other property without generating any gift taxes.
    Gifts which exceed this amount will be taxed at 35%.The annual gift
    tax exclusion remains at $13,000.

                           

  • What costs, other than attorney fees, are involved in probating
    an ordinary will?

  • The Court Clerk charges a fee for the filing of the will,to issue Letters
    Testamentary, and to file the inventory of the estate; there is also a
    publication charge to have the notice to creditors published in a local
    newspaper.

  • do you accept credit cards?

  • Yes, with PayPal
WILLS AND TRUSTS
PROBATE