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Will I have to pay an inheritance tax? If so, how much? Do I need a CIR agreement to avoid an inheritance tax?: I live with my boyfriend in his home. We have lived together for 10 years. We do not have a CIR but he is leaving me his home in a trust.

Asked about 1 year ago in Estate Planning

Donald’s answer: You, the recipient of any property or other type of value from your boyfriend's trust or estate, are not liable to pay an estate tax. If your boyfriend's net trust and net estate property is large enough, it may trigger a WA state estate tax. There is no income tax owed by you until you inherit items of value and if they generate income with you as the new owner. Then, you may be required to file and pay an income tax, but that is because you are the new owner and now responsible for income tax on the income any property generates for you. If your boyfriend has a trust he most likely had an attorney prepare it. He or you should consult with the attorney to determine whether any estate tax may be owed by his trust or estate upon his death.

Answered about 1 year ago.


Does setting up a living trust protect your home, cars, etc. from creditors that are or are not listed as lineholders?: I am a senior citizen preparing for retirement and considering a living trust. What kind of a trust would be best?

Asked about 1 year ago in Trusts

Donald’s answer: A revocable living trust in WA provides no creditor or asset protection. Upon the death of the owner of the trust, if other trusts are created for the benefit of a spouse or children, and if they are written correctly, they may protect assets from the spouse or children's creditors. Asset protection is a very fluid area and successful asset protection depends on a lot of factors that should be evaluated and discussed with you. If you are in need of asset protection you should consult a qualified asset protection attorney.

Answered about 1 year ago.


Do I need a new will/living will/trust/etc. every time I move?: What if you move a lot. Say every 2 - 5 years to a different US state.

Asked over 1 year ago in Estate Planning

Donald’s answer: Trust laws are mostly uniform throughout the US. Wills are similar, but there are some differences from state to state. It is the other documents, such as financial durable powers of attorney, health care powers of attorney, living wills or other health care directives that i have seen vary greatly from state to state. In any case, it's best to consult with an attorney in the state you reside in after you move there to determine whether or not any of your documents should be updated.

Answered about 1 year ago.