Inheritance is a financial term that describes assets that pass to individuals after their death.
Most legacies consist of cash that is held in a bank account, but may include stocks, bonds, cars, jewelry, cars, art, antiques, real estate, and other tangible assets.
Those who receive an inheritance may be subject to inheritance tax, with the more distant relative of the beneficiary being the deceased, the greater the inheritance tax is likely to be.
Currently, six US states levy inheritance taxes.
The property of the deceased is divided according to his will through the probate process. If there is no will, the court will appoint an administrator to divide the property in accordance with state law.
A named beneficiary refers to an individual identified by a written legal document who has the right to collect assets from a trust, insurance policy, pension plan account, or IRA.
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.