Liquidating assets for charity
If you have a lot of cash in accounts at your disposal, as of 2012 you could give up to ,000 a year to each child, tax free.
If you’re married, you and your spouse could each give ,000, for a total of ,000 a year per child.
They’re usually paid by his probate estate from the cash and assets he did not transfer to his trust during his lifetime. This is the person the decedent named in his trust documents to take over management after his death.
If you’re the person named, you won’t need court authorization to act on behalf of the trust; the documents are enough.
Refer to the trust documents to find out how the decedent wanted his assets distributed.
You might have to have some of them appraised and valued.
These lower tax rates reduce the federal tax cost of selling a business.
You can also give property such as furniture, jewelry and other goods worth ,000 or less under this gift tax rule.
Instead of transferring title to your property and other assets directly to your children, you can establish an irrevocable trust.
Closing a trust after the grantor’s death is much like probating his will.
When a decedent leaves a will, he names an executor to gather his assets and disperse them to his named beneficiaries.
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California treats capital gains as ordinary income, and the amount of California capital gain tax is not dependent on the holding period of the capital asset.