Married couples most often prefer to set up a “joint” estate plan. Even if they are represented jointly, each will still have his/her own will and other documents. It is perhaps a misconception that spouses’ estate plans should mirror each other. They absolutely don’t have to, and in many cases should not. Even in the case of a married couple, each
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Who are considered US persons for transfer tax purposes and why is this important? US persons for transfer tax purposes are: all US citizens, regardless of where they live; all other non-US citizens domiciled in the US. The estate of US domiciliaries has a tax exemption amount of $ 11.2 million. By contrast, the estate of non-US domiciliaries has a tax
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The rules of intestate succession in Virginia, Maryland and the District of Columbia
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Probate is the official process, supervised by the local district court, of winding down the estate of a deceased person and transferring the assets to the heirs and other beneficiaries. In most cases, ownership of the deceased’s assets does not pass automatically to the heirs upon death. One very important exception is joint ownership with right of survivorship, in which
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Diplomats in the United States are considered non-resident aliens. Many US laws do not apply to them. Some of their assets located in the United States, however, pass according to the local law. In certain cases it is advisable for married couples to hold real estate as tenants by the entirety. Thus, the surviving spouse becomes the sole owner by
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Europeans who live in the United States are often surprised when they learn that many assets in the United States do not pass through wills, or the court-supervised probate process. Probate is the formal proceeding through which the local court names a personal representative of the estate and supervises this person as he settles the estate: pays the debts of
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I was recently asked whether spouses can be disinherited in Virginia. I found this question quite amusing. While in this country parents may disinherit even their minor children (for whose well-being and very existence they bear responsibility), married couples may not disinherit each other. I find this quite ironic, given the 50% divorce rate. And it is my conviction that
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Becoming a US citizen can have significant positive estate tax consequences: There is no tax levied on assets that pass to a US-citizen spouse. The federal estate tax exemption of a US citizen is currently USD 11.2 million instead of a mere USD 60,000 for non-citizen decedents.
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When deciding on how to best leave assets to charities, grantors should be aware of the differences regarding the tax treatment: bequests to registered US charities are usually tax-exempt, whereas leaving property to non-US charities is usually not tax-exempt.
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Planning a business succession may take years and should therefore be started well in advance. The goal is to ensure that the next generation is available and prepared at the time when the current owner wishes to hand over the reigns. When handing over control takes place gradually, various management issues may occur. Often business owners wish to leave the
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