In 1951, the Powers of Appointment Act was established. This was one of the greatest developments in the tax and estate planning sector. A power of appointment in broad terms means that a person has the power to dispose of a property, and they hold that power even if they do not own the property in question. This could be a "reserved" power or a "donated" power.
Your rights when it comes to inheritance law
Survivors have certain rights to a family member's property after they have passed away, and these rights are governed by inheritance law. Going by this law differs from state to state, but you may be able to claim inheritance from your spouse, regardless of what has been written in their will. This right depends on whether the state follows community property law or common law.
Should I fund a spendthrift trust for my adult son or daughter?
Parents who have the means to leave significant portions of their estate to their adult children are sometimes stymied by those very heirs when it comes to structuring the assets.
Complying with an audit from the IRS
The Internal Revenue Service (IRS) occasionally runs audits on tax payers to make sure that they are processing all of their revenue and taxes properly. This can be a stressful process to go through, and can be avoided by completing a thorough and computer-processed tax return.
