The Finance Factor

Pre-Need Funeral Planning

For survivors, the hours and days following a loved one’s death is no time for weighty decisions. For many Americans, however, this will be the first time they think about preparations for the loved one’s funeral. Given the expense and painful emotions often involved, survivors may be in no condition to make choices for themselves or their loved one.

According to a survey of its membership by the National Funeral Directors Association, the average cost of a funeral today is $6,500. That’s an expense that can quickly escalate as survivors confront a bewildering range of options on everything from the kind and quantity of flowers to the quality of their loved one’s casket. A premium casket alone, for example, can exceed $15,000. Add in the expense of roses over carnations and live music over recorded, and survivors can end up paying triple or quadruple the average funeral’s cost. Yet, without advanced planning to guide them, survivors may feel guilty about saying anything but “yes” to the best for their loved one. Continue reading ‘Seniors Overcome Fear, Obtain Peace of Mind Through Estate Planning’ »

Guarantors on home equity loan for bad credit are for borrowers who have negative credit report. If one borrower has bad credit, the lending company will certainly ask the home buyer to agree in providing a guarantor. The borrower would need to look for a co signer to back his claims that he can pay back the equity home loan as agreed upon.

If you require a co signer, you have to realize that if you do not meet the loan payments, then your guarantor will be the one to pay for your monthly dues. Remember that the guarantor promised that he will assume the payment responsibility if you fail to fulfill it. Therefore you have to make sure that you do not fail in your payment responsibilities in order not to place any burden on your co signer. Continue reading ‘Home Equity Loan For Bad Credit – Guarantors Do Help’ »

If someone dies without leaving a will, there’s a certain way which their estate is handled, according to the laws of intestacy. In most cases it’s a long drawn out process but something that has to be done. The fact is that, although the people nearest to them, but not related, may not get anything at all (even if the deceased person would have wished them to benefit) there are enough close relatives to be able to sort out the distribution of the estate. We stress though, that this may not have fitted in with the deceased persons wishes.

Where there are no relatives to be found, the estate may come to the attention of a solicitor who is in charge of the estate of the deceased or from a firm of heir hunters. Heir hunters make every effort to track down family members and work on a commission basis if they are successful. Continue reading ‘Could Heir Hunters Be Coming Your Way?’ »

Some people say if you make a will you can make sure that no inheritance tax will be charged on your estate, as if a blanket rule applies. In actual fact some estates won’t involve inheritance tax as they are under the allowance. Others may be less straightforward and we’d always advise you to consult a professional before attempting to sort things out for yourself.

If inheritance tax is due, your executors would have six months, from the end of the month in which you die, to settle the amount. After this time interest will be charged. Inheritance tax on certain assets, such as buildings and land, may be deferred, but will still be payable eventually. Continue reading ‘Wills and Pets’ »

More and more wills are being contested. The number of court cases in relation to will and inheritance disputes rose by 175 per cent in one 12 month period recently. Most disputes are settled without actually getting to the court stage, so the actual figures are very much higher than those published.

The reason for this surge in disputes seems to be a change in the way of living. Family structures are much changed from the old one partner for life and 2.5 children. It’s not unusual for people to be married two or even three times and to have children from each relationship, plus stepchildren. Many people co-habit without any legal partnership and the value of people’s estates is very much higher than in the past, even allowing for the credit crunch in recent times. People are living longer and are also much more likely to get involved in helping with charities and this may lead to charitable giving.

Solicitors report that they see increasing numbers where complaints crop up from previous spouses and partners. Even more complications can be expected where their offspring are involved. The results of the will may have not lived up to their expectations and it’s not uncommon to seek legal advice if they feel their treatment has not been fair. Continue reading ‘Don’t Leave a Mess – Leave a Valid Will’ »

A slow market is a good time to tidy up your personal affairs. In the past 6 months, five long time subscribers have died without any warning to speak of or long illness. Some of their lucky widows had no difficulty settling their estates because they had taken the time to up the Real Property into Land Trusts and their Personal Property, including Land Trust shares, stocks, bonds, and valuables into Personal Property Trusts. All Trusts funneled down through their Living Trusts to their designated heirs without the need for the delay and expense of Probate.

In contrast, a couple of people had held title to their property in their individual names and had done nothing to arrange for the passage of their estate. In their mid-50s they reasoned that they had plenty of time to do their estate planning later. As a consequence, their widows and families are destitute because they can’t prove that they have any right to the property.

In some States, when a person dies “intestate” without a Will or Trust, the State decides who gets what by means of “devise and descent” laws. In the meantime, a Receive is appointed to assemble and liquidate assets. A Receiver has been described as someone who bayonets the dead, but usually it’s the living who pay the tab as they see hard earned assets being consumed by court costs and expenses. Continue reading ‘Why You Need to Set Up a Living Trust Now’ »

Dependent children require resources for health, maintenance, support and education. Some support is provided through guidance while other support requires money. Parents must provide both but what happens if the parents aren’t there to provide either?

The first step is crucial: have reasonable life insurance.

Could you imagine raising someone else’s child if the parents left no money? Most current statistics state raising a child to the age of 18 costs $250,000. Costs are higher in the earlier years due to doctor visits, diapers and daycare. On the back end, higher education could require additional money beyond age 18.

Even if only one parent is gone can the remaining parent alone afford mortgage payments, taxes, utilities and the costs of raising children?

What would the quality of life be for the surviving parent?

A family with one young child should consider having $500,000 in coverage. Continue reading ‘3 Estate Planning Steps For Young Families’ »

Probate estate refers to assets belonging to someone who has recently died. Probate is required in all 50 states unless inheritance assets are protected through a trust. The process is used to validate decedents’ Wills, pay outstanding debts, and distribute assets to named beneficiaries.

The process for transferring probate estate assets to heirs typically takes six to nine months. The duration depends on many factors including court caseload, complexity and value of the estate, and how well family members interact.

If the decedent executed an ironclad Will, the estate can pass through probate rather quickly. If no Will exists, or if heirs contest its validity, probate can drag on for several months or even years. This can potentially bankrupt estates with real estate holdings because expenses related to the property must be paid through the estate. Continue reading ‘What is a Probate Estate?’ »

Trusts seem to be a very popular subject these days. While they are often discussed, they are commonly misunderstood. Some people would have you believe that trusts are a new and exciting way to protect you from creditors, bankruptcy or probate. The fact is that they have been around almost forever and are really a mechanism for the distribution of wealth not necessarily for protecting it. The bottom line is that for most people, Trusts are unnecessary.

There are two main types of trusts, “Revocable” and Irrevocable”. Trusts can be originated while you are alive, or upon your death, through your will. A revocable trust can be changed so long as you are alive while an irrevocable trust is unchangeable, regardless of changing circumstances in your life. The most common is of course the revocable variety. In addition, the revocable trust becomes irrevocable upon the death of the grantor/settlor. Either trust is a vehicle for holding assets. The trust literally becomes the owner of designated and transferred assets. One of the great benefits of a trust is its ability to avoid probate for the grantor. Continue reading ‘The Truth About Trusts’ »

We all understand that we are going through troubled times and it is only a very few people that are still clinging on to their previous life styles. For all these people through out the country the only way out of this mess would be proper financial planning. Be it in office or at your household, financial planning can turn your life around tremendously. For all of you who think that financial planning is the hardest thing to do in this planet, things are looking great with the new introduction of free financial planning software.

Some of the software that is available today will take care of all your day to day as well as long term planning. There are also varieties of free financial software that will cater to different arenas of financial planning. Therefore, the software will definitely cater to customized needs. Such free software will provide the basic as well as advanced tools to tackle your financial woes in this torrid economy.

Then there’s the obvious best fact about planning software being free. All you have to do is come online and carry out a search for free financial planning software and you will be met with an array of information about free financial software and its uses. You may research on the matter and then make a decision on what you will need to help you with your financial situation. Remember though that it is not a good idea to pass personal and banking information on the internet. So stay safe out there as much as possible. Continue reading ‘Financial Planning Software – Will it Help’ »