#trusts

#trusts

Probate, often feared and misunderstood, is a court-supervised process that settles a deceased person's debts and distributes assets according to their will or state law. The concerns around probate usually revolve around cost, time, and privacy, with horror stories amplifying the perception of it being a process to avoid at all costs. However, the reality of probate's difficulty varies significantly depending on the state laws, making it crucial to understand the specifics of your local probate system to determine if avoidance strategies are necessary.

Annual gift tax exclusion: $19,000 per person in 2025 ($38,000 for couples). Lifetime gift and estate tax exemption: $13.99 million in 2025, but expected to drop in 2026. Inheritance advantage: Stepped-up basis often saves heirs from significant capital gains taxes. Trusts and spousal transfers: Effective tools for transferring property when dealing with larger estates or married couples. Gifting a property to a loved one can feel like a generous way to pass on wealth, but the stringent regulations