A gift letter is a piece of formal written correspondence that explicitly states that money received from a friend or relative is a gift.
Gift letters are important, for example, when it comes to paying a down payment on real estate because lenders tend to frown on borrowers using extra borrowed money to make a down payment on a home or other property. However, gifts are allowed.
For 2022, the inheritance and gift tax exemption is $12,060,000 per person.
AB trust is a joint trust created by a married couple; after the death of one of the spouses, the trust is divided into the survivor’s part (Trust A) and the bypass part (Decedent’s Trust or Trust B).
The agency, if necessary, allows any person or entity to act on behalf of another person when the beneficiary cannot explicitly give permission to do so.
A generation skip trust (GST) is a legally binding arrangement whereby assets are passed on to the grantor’s grandchildren or anyone 37.5 years younger, bypassing the grantor’s next generation of children.
Annuity preservation trusts (GRAT) are estate planning instruments in which the grantor freezes assets in a trust from which they receive an annual income.
A Health Care Power of Attorney (HCPA) is a legal document that gives a specific person the right to speak with others and make decisions on your behalf regarding your health, treatment, and care.