Naming an Executor is Important

Naming an Executor is Important

The News Journal
by Nancy F. Blumberg, CPA, CFP
and John H. Sterling, CPA

Simon Master & Sidlow, P.A.

What is an executor of a will?It’s the person who handles the deceased’s affairs during the probate process.Without a will, the court will appoint someone to perform this function.

Therefore, it is important while a person is making out a will to name an executor and get his or her agreement to perform this function.It is also important for the person to discuss the responsibilities of the executor so the person knows what is expected.

Many people don’t realize the work that is involved.The executor’s job usually involves lots of time and effort and frequently exposes him or her to personal liability.

The executor locates the will, offers it for probate in the proper court, collects the assets so they can be distributed according to the terms of the will, safeguards the assets and makes sure they are appraised, files the necessary federal and state tax returns, pays any related taxes, cancels credit cards and various accounts, pays the debts of the estate and distributes the assets of the state. More…

The Ins and Outs of the Personal Residence Trust

The Ins and Outs of the Personal Residence Trust

New Castle Business Ledger
by Nancy F. Blumberg, CPA, CFP
Simon Master & Sidlow, P.A.

Transferring family wealth has been limited by legislation so that many traditional estate planning techniques are no longer available.However, one of the remaining techniques which involves your personal residence has become increasingly popular.The use of a grant or retained interest trust has the potential to save you substantial estate taxes.

You can transfer your wealth to your children or others and retain the use of your home for a fixed number of years.By using a qualified personal residence trust (QPRT) you can avoid estate and gift taxes on any future appreciation in the value of your home and you can make this transfer as a relatively small taxable gift.The value of your gift is the value of the future interest of your residence.This will depend on the current value of the home, the current interest rates and the number of years you wish to retain your interest in the home.A QPRT can be used for your personal residence as well as a vacation home. More…