Probate? No thanks!
Two reasons you would want to avoid probate
Assets frozen for at least six months, public process, expensive
Life insurance proceeds are income tax-free, but not?
estate tax-free
This is the main objective when someone chooses to set up a trust over a will.
For 2023, I can gift up to this amount to anyone.
What is $17,000
I named my minor child as sole beneficiary of my life insurance policy. What's wrong with that?
Minors cannot inherit assets.
This is typically the minimum age to create a will?
What is 18?
When an asset gets a "step up in basis" at death, what does this mean to the person inheriting that asset?
The cost basis for the asset is now the value at date of death.
You are establishing an irrevocable life insurance trust. Who should be the owner, insured, and beneficiary?
Trust, You, Trust
This is the quickest way to avoid probate for non-retirement accounts, such as a brokerage or bank account?
What is add a POD or TOD?
Dying without a valid will is called?
What is dying intestate?
When a gift is made, who is typically responsible for any tax due?
The donor
The person who creates and initially funds the trust is referred to as?
Who is the Grantor?
Illinois estate tax rate is a maximum of?
What is 16%
I have an exisiting insurance policy that I want out of my estate. I created an ILIT and plan to transfer that policy to the ILIT. What happens if I die?
If it is within 3 years, its going back in your estate.
How will the courts typically divide assets for someone without a valid will?
Half to spouse, half to any children.
The estate tax threshold for Illinois is?
$4 Million Dollars
This is the primary purpose when establishing an irrevocable trust?
What is remove assets from your gross estate?
A decedent's estate must include assets/property transferred for less full fair market value within this many years of death?
What is three years?
I have a non-qualified annuity and named my trust as beneficiary? When I pass, my spouse must liquidate within?
What is 5 years?
How many witnesses are typically required when establishing a will?
Two
Illinois estate tax rate is a maximum of?
What is 16%
A pour-over will is a type of will that works in partnership with a living trust. It's designed to “catch” property you didn't put in your trust
What is the tax "sunset" coming end of 2025?
a number of favorable provisions enacted by the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire, or "sunset." Income tax rates and estate tax exclusions will revert to pre-2017 numbers.
Beginning in 2020, qualified accounts must be distributed within 10 years to non-eligible beneficiaries. How are Roth accounts treated?
Non-taxable, but still must be withdrawn within 10 years.