Question 1

How Long Does the Executor of an Estate Have to Pay Beneficiaries?

Accepted Answer

The amount of time an executor has to pay beneficiaries varies depending on the complexity of the estate, state requirements, and any challenges that may arise during the probate process. In general, executors are expected to distribute assets to beneficiaries in a timely manner, and the process is more likely to go smoothly and quickly when a solid estate plan is in place.

Question 2

What is Estate Tax?

Accepted Answer

Estate tax is a tax a beneficiary receives on assets they inherit. Luckily, most people don’t need to worry about paying estate taxes. In 2023, the federal estate tax exemption was over $12 million. As long as the amount inherited is below that number, it is not subject to federal estate taxes.

However, it’s important to know that state taxes may apply. For example, the Minnesota exemption amount is $3 million. Wisconsin and Iowa do not levy an estate tax.

Question 3

What is Probate?

Accepted Answer

Probate is the legal process through which your estate is settled and distributed under the supervision of the court. Probate can be a time-consuming and costly process.

If you have a will, the probate court validates it and oversees the distribution of your assets according to the will’s instructions. If you have a trust, your assets typically avoid probate. By transferring assets to a trust during your lifetime, those assets can pass directly to your beneficiaries upon your death.

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