...If you mean the death benefits of the insurance policy, then these funds are generally free from income tax to your named beneficiary or beneficiaries. You may elect to have the insurance company hold on to these proceeds after your death and distribute them to your beneficiary at a later date or in a series of installments. The funds that the insurer holds are earning interest, and when a payment is made to your beneficiary, it may include both principal and interest earned by that principal, or only interest. Although the principal portion of the payment is tax free, the interest portion is taxable to your beneficiary as ordinary income. In some cases, if you transfer the ownership of your life insurance policy to another party before your death for monetary value or other consideration, the proceeds paid to the beneficiary at your death could be considered taxable income to that beneficiary. This is a complicated matter, and you should seek the assistance of a tax professional before completing the transaction. The proceeds of your life insurance policy may be subject to federal estate taxes if you have what's known as incidents of ownership in the policy. If you control the policy in any way--that is, you can cancel it, surrender it, borrow against it, pledge or assign it, or can change the beneficiary--then you possess incidents of ownership in the policy, and the proceeds of the policy may be subject to federal estate taxes when you die. You might postpone these...
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...(1) 2 yrs ago, decedent gave Child $75K in cash. Decedent died in the current year. (a) • The $75K cash outright to the Child would not be included in the donor’s gross estate under § 2035(a). • § 2035(b) requires the federal gift tax paid by the decedent or the decedent’s estate on any transfers made after 1976 by the decedent or the decedent’s spouse within three years of the decedent’s death to be included in the decedent’s gross estate. o $13K + ($75K - $60K)*.26 = $16,900 Tax but 2505(a)(1) Unified Credit against gift tax ($345,800) (b) If decedent gave Child a life insurance policy on decedent’s life worth $10K, with a face value of $75K, decedent dies 2 yrs later, what’s included in decedent’s gross estate. • $75K would fall into the time frame of § 2035(a)(1) and designated as property • $75K would be included in the decedent’s gross estate pursuant to § 2035(a)(2) because the interest transferred by the decedent was one that, had it been retained by the decedent, would have enlarged the decedent’s gross estate under § 2042. o Insurance becomes valuable at death (c) If after the gift, Child made annual premium payments totaling $3K? Assume that Decedent’s total pre-gift premium were $12K? • Authority: Rev Rul 72-282; see also: In regards Silverman’s estate 521 f.2d 524. • We are going to create a fraction: o Inclusion ratio: ($12K (paid by decedent) / $15 (total paid)) x $75K o Exclusion ratio: (3/15) x $75K ♣ Must look at the numerator, this...
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...heir to ask for partition in respect of a dwelling house, wholly occupied by a joint family, until the male heirs choose to divide their respective shares therein. This paper focuses on the rights of women regarding section 23 of the Hindu Succession Act, 1956 and its effects after it got deleted in 2005. Hindu Succession Act, 1956: Before the amendment The framers of the Indian Constitution took note of the adverse condition of women in society and a number of provisions and safeguards were included in the Constitution to ward off gender inequality. In this context, Articles 14, 15(3) and 16 of the Constitution can be mentioned. After the advent of the Constitution, the first law made at the central level pertaining to property and inheritance concerning Hindus was the Hindu Succession Act, 1956. The Act took a giant leap in 1956 by granting several rights to women equal to that of men but failed to do complete justice to women. Prior to the Hindu Succession Act, 1956 shastric and customary laws that varied from region to region governed Hindus and sometimes it varied in the same region on a caste basis resulting in diversity in the law. A woman in a joint Hindu family,...
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...Joshua Clarke Prof. Bisla ENG 333 5.8.2014 How Natural is the Supernatural Horace Walpole's The Castle of Otranto makes frequent use of supernatural effects. The novel's uses of the supernatural are a perfect example of its predecessor status as the first gothic novel, as well as question the purpose for all of its supernatural occurrences. Is it God punishing those deserving of the sentence? Or is it all just a very big coincidence and in our characters’ imagination? Most of the supernatural incidents in the novel are directed towards the themes of succession and inheritance. They revolve around the issue of establishing the rightful heir to the seat of Otranto. Because of the murderous actions of his grandfather Don Ricardo, who poisoned the previous rightful owner Alfonso the Good, the current prince Manfred has ruled over the region contrary to the precepts of genealogical law. In fact, many of the ghostly occurrences relate to exposing the usurper Ricardo before establishing Theodore, the rightful heir, onto the throne. The apparitions are portrayed in a bizarre and exaggerated manner, allowing the story to take on a rather surreal, unbelievable route where it is safe to say that spiritual vengeance is being exacted on those “got away with it”. This is apparent in the opening scene, when Manfred discovers that his only son has been crushed to death under a giant helmet which appears to have fallen out of the sky. It would later be discovered that the helmet is similar...
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...lead. He was however, incredulous by the fact that this may not be achieved in the future of the perfect society. To this fact he gives an ingenious riposte, such societies will be under the guardianship of the offspring of the current guardians. That means what the future society will be under the guardianship of a not skill but the benefits of inheritance. In such a society, dissatisfaction is possibly the way of the day. Plato maintained that for dissatisfaction an understanding of the nature of the human being is the answer. That is, people are naturally different and they have where they fit in the society (Philosophyprofessor). In such a situation, they will be able to rule the society. A perfect society, I believe, is one that is distinctive by leaders who have the interests of the society at hand. That is, a society under the reign of guardians who are in favor of the members of the society and their needs. A society that is simply having rulers who have inherited power is liable to doom. This is because, in most cases, such kinds of people not only lack the wisdom to rule, but they are also corrupted by the benefits of inheritance that they become nefarious with power. However, in a situation where someone who has inherited power is able to stand for the wishes of the people then can lead a perfect society. The wishes of the governed should the guiding factor here. It defines what the society stands for and what it aims to...
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...Estate Planning for Same Sex Couples I. Introduction The benefits of marriage are unavailable to same-sex couples. Moreover, outdated intestacy statutes fail to recognize the close family bond between same-sex partners. Moreover, most intestacy laws discriminate against same-sex couples in that gay or lesbian relationships are generally considered invalid for the purposes of distributing the estate of a deceased partner who dies without a will. Accordingly, in order to reap inheritance and tax benefits that are automatically afforded to traditional married couples, these same-sex couples must rely on extensive and creative legal planning. There are several tools that provide solutions to this issue. Contract based estate planning techniques are the most commonly used tools for distributing a decedent’s property at death. Though the following planning mechanisms provide certain advantages, they are also accompanied by various disadvantages. II. Wills A will is an instrument by which a person directs dispositions of property to take effect upon death. It is the only document that allows a decedent’s probate assets to pass testate to persons of his or her choosing as opposed to passing via the strict laws of intestacy, under which the surviving partner would receive nothing. Even in the presence of strategies used to avoid probate such as intervivos trusts, wills are an essential precautionary measure to demonstrate the intent to pass property outside of probate, to...
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...obtained easily and esteemed too lightly. We see in some of these episodes where individuals and couples squander through millions of dollars in short periods of times. They find themselves bankrupt and in more turmoil than when they did not have the extravagant means upon winning a lottery. If these individuals had worked hard for their money it would have meant more to them. Earning their means could have prevented them from squandering through millions of dollars. I know a young man who lost his parent tragically when he was ten years old. He inherited a very large sum of money. The inheritance was not set up in a trust fund that required him to wait until he had learned life’s values of earning what you have. This young man received his inheritance at the tender age of 18 with the only requirement being that he graduates high school to be eligible to collect this inheritance. Upon turning 18, he went on lavish vacations, purchased a new truck, boat...
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...I appreciate the opportunity to advise you regarding this inheritance case. To ensure a complete understanding between us, I am stating the pertinent information about the advice that I will be rendering and the facts I have gathered. The law imposes various outcomes that shows how you are the rightful heirs to the late Huguette Clark estate. Querela This is the process that I would recommend that we use Since you would naturally succeeded Ms. Clark under the ius civile as sui herdes if she would have died intestate. Then under testamentary you should have succeeded Ms. Clark also. Exherdatio Since under law the person making the will have to list all disinherited male and female suis by name. Skipping any names of potential heirs could lead...
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...It's the final frontier. Many a hapless investor has boldly come here, seeking respite. Some find closure, others crawl out disappointed, but virtually all are branded by the verdict. We refer to the Indian courts, which are deluged by a daunting number of cases every year. The spectrum is as staggering, with a large percentage falling in the realm of personal finance, be it the house an heir is battling his kin for possession (real estate), a claim that an insurer refuses to settle (insurance), or the loan that the guarantor is to pay (banking). Even as these cases impact people's finances, some leave purging precedents, expanding the scope of an argument, lending clarity to an obfuscating rule, plugging loopholes, or giving direction to a nebulous circumstance. Over the years, such rulings have altered the financial fates of thousands of appellants, guiding them in the course of action or bolstering their cases for having cited them. The awareness about earlier rulings can clearly be crucial to the legal outcome since these can help strengthen the argument and prepare the case in a better manner. "Depending on the previous judgements, people decide whether to fight it out or opt for an out-of-court settlement as lawyers can make out which way the case is likely to go," says Sandeep Nerlekar, CEO, Warmond Trustees & Executors. 1) An insurer must prove fraud to reject a claim Kerala-based PV Suresh's wife Lalitha had taken a life insurance policy from LIC for Rs 50,000...
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...Volpone is a play written by Ben Johnson in the seventeenth century and it portrays the seventeenth century society through Johson's depiction of Volpone as a corrupt, greed and a hedonist character. The significance of the Argument in the play is to introduce the audience to Volpone and his plan with the help of Mosca and to give a brief summary of the play that will be thoroughly introduced in the first act. In the Argument, Johnson introduces the audience to Volpone's character who is a rich, Venetian nobleman who "feigns sick." Throughout the play, Volpone pretends that he is terminally ill and on the verge of death. As a result, Voltore, Corvino and Corbaccio who are Volpone's "several heirs" vie for his estate and offer precious golds and Venetian coins as "presents" to Mosca. Volpone also "despairs" at the end of the play as a result of his actions and gets punished. "Lies languishing" in the Argument is a pun; it means either Volpone lies in bed pretending his sickness or lies to his heirs by deceiving them. Johnson refers to Mosca as a "parasite" which connotes that Mosca is a dependant servant who is servile to Volpone. However, Mosca pretends to be honest and obsequious to manipulate Volpone. Mosca plans to turn the heirs against each other and to betray Volpone and that is when Mosca takes control over the action in the play and "weaves other cross-plots."In the play there are many cross-plots, many incidents and anecdotes. An example of a cross-plot is when...
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...Question No. 1: Who can benefit from a will? INTRODUCTION A will is basically a document formally executed according to the statutory requirements of Wills Act. It is an effective instrument to arrange a person’s estate where it enable a person to settle his assets for his loved one. By making a will, it also enable a person to effectively direct the management and distribution of his assets. In Malaysia, the law on will is governed by Wills Act 1959. Section 2 of Wills Act 1959 provided the definition of will which stated that “will” means a declaration intended to have legal effect of the intentions of a testator with respect to his property or other matters which he desires to be carried into effect after his death and includes a testament, a codicil and an appointment by will or by writing in the nature of a will in exercise of a power and also a disposition by will or testament of the guardianship, custody and tuition of any child. [1] However, it is not apply to Muslim as mentioned in Section 2 (2) which stated that this Act shall not apply to the wills of persons professing the religion of Islam whose testamentary powers shall remain unaffected by anything in this Act contained. The terms that are used in a will are as follows: (i) Testator, the person who making the will and he must be at least eighteen (18) years of age and of sound mind unless he is a soldier in actual military service or a mariner or seaman at sea. ii) Executor (for male)...
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...The Importance of Making a Will Someone’s time of death is hard to predict and also to think about. When a person of close relation passes, it has a detrimental effect. Even though the thought of death is difficult to cope with, everyone needs to prepare for the worst. One way to make the lives around you a little bit better is to personalize your own will. And of course life is not all about money, but in a situation like this, it could at least put the property and money in the proper hands. If someone is not prepared for their time of passing or tragically dies suddenly, then the person is then known as dying intestate. Now the distribution of your money is left to the judge. This can lead to a lot of controversy and will not make the overall situation any better. Your will is important to make, not just for, but for your friends and family. This is your life, control what happens to your hard earnings. A will is not difficult to make and it allows you the satisfaction of knowing where your property is going after you pass. In the will itself, you need to name the people who will inherit all of your belongings. So for an example, if your grandson really loved your statue that was displayed in your house and you knew he would have much appreciation for it, you would assign your grandson the statue in your written out will. The second thing you assign is a person who you think will be able to carry out your will. This person will make sure everything is being distributed...
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...HEIRS TO AN ESTATE Recently you and you brother and sister inherited the estate of an aunt who lived in Chicago. All three of you loved your aunt, but even though you all lived in the same city, you had not kept in contact with her in recent years due to career and family obligations. Your aunt’s Last Will & Testament requires that the three of you divide the assets among you any way that you can agree upon within 30 days of her death. However, if you fail to provide her attorney with a written agreement within the 30 days, all of her assets will be given to a charity. The estate consists of the following: (1) about $320,000 in cash and CDs; (2) a 2004 Lincoln Town Car; (3) two houses valued at $360,000 and $ 525,000; (4) all of the furnishings of both houses; (5) an art collection valued at $250,000; (6) season tickets to the Chicago Cubs (behind the home dugout); (7) a large box containing many family photos and slides. The three of you are meeting in six days to try and negotiate a settlement of the estate. In preparation answer the following skills questions: Skill 2-1: Recognize that before next week’s meeting, preparation is critical to success, and usually includes identifying all tangible and intangible issues that will be of interest to all parties, and then prioritizing those issues, making sure to include some throwaway issues. What preparations do you need to make before the meeting? Skill 2-2: Should you propose the three...
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...In reviewing the situation we know that the Notimelefts have a net estate of $8,500,000 and three children. The goals are: to cover their own needs; pass funds on to three children equally; avoid taxes; protect their funds; keep their business private; and give no money to charities. The issues here are: will the Priest be allowed to have an inheritance or would it be given to the church (which looks like a charity to Willis and Wanda); would Darlene’s manipulating husband spend the money and what would happen in the case of divorce; what about possible grandchildren (does Ohno have a sibling?); and when Derelict is in prison would his inheritance be required to pay restitution? What happens if Willis or Wanda are incapacitated? The first thing I would advise would be to open a Revocable Living Trust for Willis (Trust A), one for Wanda (Trust B), and a Children’s trust with a spend-thrift clause to keep Derelict from spending his inheritance foolishly. Trust funds up to $5,120,000 are excluded from estate taxes so I would fund Wanda’s trust to that amount, and fund Willis’ trust with the rest. This would give them lower estate taxes because they would not be paying on the total amount. These trusts will avoid probate when the time comes which is a concern of Wanda and Willis. I would list the children’s trust as the beneficiary to Willis’ and Wanda’s trusts upon their deaths. Wanda and Willis are still alive and we do not know of any life-threatening diseases...
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...CONSTITUTIONAL VALIDITY OF VARIOUS PROVISIONS OF THE HINDU SUCCESSION ACT,1956 INDEX: INTRODUCTION__________________________________________________________________ ARE PERSONAL LAWS REALLY LAWS? _______________________________________________ ARE PERSONAL LAWS SUBJECT TO PART III OF THE CONSTITUTION? _______________________ TYPES OF SUCCESSION___________________________________________________________ WHO IS A HINDU?_______________________________________________________________ BEFORE HINDU SUCCESSION ACT__________________________________________________ INTRODCUTION TO HINDU SUCCESSION ACT, 1956____________________________________ CONSTITUTIONAL VALIDITY OF: 2005 AMENDMENT…………………………………………………………………………………………………………………. SECTION 6, HSA………………………………………………………………………………………………………………………….. SECTION 7, HSA………………………………………………………………………………………………………………………………… SECTION 14, HSA…………………………………………………………………………………………………………………………….. SECTION 15 &16, HSA…………………………………………………………………………………………………………………….. OPINION_________________________________________________________________________ CONCLUSION______________________________________________________________________ INTRODUCTION: Through this paper, I want to analyse the constitutional validity of various provisions of the Hindu Succession act, 1956 , which is a personal law applicable to Hindu citizens of India. I have attempted to briefly explain how the flaws in the said act pose a constitutional challenge and have also tried arriving...
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