What Is the Difference Between an Heir and a Beneficiary?

The term ‘heir’ refers to a person who is entitled to property owned by a deceased family member. Individuals can bequeath property to heirs through their last will and testament or a trust. When a person dies without leaving a Will, their assets are given to rightful heirs according to state probate laws.

An heir can be a surviving spouse, minor or adult children, mother, father, or siblings. Heirs can also include direct lineage relatives such as aunts, uncles, and cousins. Individuals can bequeath property to whomever they desire. If they gift items to anyone outside the family, those individuals are referred to as beneficiaries. Although somewhat confusing, heirs can be beneficiaries, but beneficiaries are not always heirs.

The only way to ensure property is distributed according to your wishes is to execute a legal Will. When property is held in a trust, the Will is used to provide directives regarding distribution. Unless inheritance assets are placed into a trust, the estate must undergo the probate process.

Probate is required to settle decedent estates. Two types of probate exist – testate and intestate. Testate refers to estates which include a last Will, while intestate refers to estates where no Will exists. The probate process varies depending on the type. Intestate estates take longer to settle because additional procedures must be taken.

The last will and testament is also used to designate a probate personal representative. This person is responsible for all tasks required to settle the estate. This can include paying any outstanding debts owed by the decedent; filing a final tax return and paying outstanding taxes; obtaining appraisals for valuable property; securing personal property owned by the decedent; and distributing inheritance gifts left to heirs and beneficiaries.

The last will can also be used to disinherit an heir. When a person decides to leave a direct lineage relative out of their Will they must include a disinheritance clause which states the reason for exclusion. While this clause does not prevent heirs from contesting the Will, it can minimize the risk. If a disinheritance statement is not included, heirs can prolong the probate process by claiming the decedent was influenced by another person or not in their right mind when executing the Will.

Contesting a Will is a costly process that often bankrupts estates due to excessive legal fees. Those who have direct lineage relatives whom they do not want to bequeath gifts to should consult with a probate lawyer to ensure their Will is properly executed.

Engaging in estate planning can keep certain assets out of probate and allow quick distribution to heirs. Individuals with checking or savings accounts can designate beneficiaries to receive funds at death. This is referred to as payable on death (POD) beneficiaries. Account holders must fill out POD beneficiary forms to provide the names, addresses, date of birth, and social security number. Upon death, beneficiaries must provide photo ID and a copy of the decedent’s death certificate to claim funds.

Individuals with retirement accounts or financial portfolios can assign transfer on death (TOD) beneficiaries. Upon death, heirs can elect to transfer funds into a new account to avoid estate taxes or cash-out the account. It is best to consult with a tax attorney to discuss tax ramifications before accepting lump sum cash.

Executing a last will and testament is one of the best gifts you can leave loved ones. Wills should be updated when major events occur. These might include buying or selling real estate; starting or closing a business; or when a new heir is born or a designated heir dies.

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Could the Great Chicago Fire Been Prevented?

  • Nearly 300 deaths
  • More than 2,000 acres
  • 17,500 buildings
  • 73 miles of road
  • 90,000 left homeless
  • $ 222,000 in damage
  • The destruction of between two and three million books from private library collections

What do these have numbers have in common? If you answered the Great Chicago Fire of October 1893, you would be correct. And while as devastatingly as fire is in Chicago history, it is not the only horrific fire-related Chicago history. In fact, just a few years later (December 1903) there were more than 600 deaths when the Iroquois Theater burned and later listed as the deadliest single-building fire in American history.

What is more interesting, is that while the exact cause of the Chicago fire has ever been determined, the Iroquois Theater fire could have been prevented had the proper measures been taken. History shows that a Chicago fire department captain, toured the facility and noted that "there were no extinguishers, sprinklers, alarms, telephones, or water connections; the only firefighting equipment available were six canisters of a dry chemical called" Kilfyre ", which was Normally used to douse residential chimney fires. "

He reported the problems to his superiors, but was told that nothing could be done, as the building had its own fire warden. In addition to the lack of firefighting equipment, the editor of the Fireproof Magazine , toured the facility and reported that there was an "absence of an seize, or stage draft shaft; the exposed reinforcement of the (proscenium) arch; the presence of wood Trim on everything and the obligation provision of exits. "

After each of these events, Chicago rebuilt. But what if there had been something in place to send out an early alarm? How many lives would have been saved had the Iroquois Theater taken the time to make the necessary changes? Yes, it was a century ago, and modern assumptions as we know today were not available, but that does not excuse the loss of life and property destruction.

So, with a proactive focus in mind, what are you doing to protect your home and family from fire, theft, burglary or mayhem of any sort? Whatever you choose to have utilize the services of one of the local Chicago home security systems or opt for a nationally recognized company, taking care of what matters to you is important. After all, as the early residents of Chicago learned, it's not much fun to clean up after a fire! Do not make the mistake of thinking you could be excuse form personal injury, property damage or a break in. Do your part to keep your family safe.

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Realty Vs Real Estate Vs Real Property

Realty and personal property terms have often been confused as to what they exactly mean. Here we will clear that right up for you. We will look at the terms personal property, realty, land, real estate, and lastly real property.

Let’s begin with personal property. Personal property also known as chattel is everything that is not real property. Example couches, TVs things of this nature. Emblements pronounced (M-blee-ments) are things like crops, apples, oranges, and berries. Emblements are also personal property. So when you go to sell your house, flip, or wholesale deal, you sell or transfer ownership by a bill of sale with personal property.

Realty.

Realty is the broad definition for land, real estate, and real property.

Land

Land is everything mother nature gave to us like whats below the ground, above the ground and the airspace. Also called subsurface (underground), surface (the dirt) and airspace. So when you buy land that’s what you get, keep in mind our government owns a lot of our air space.

Real Estate

Real estate is defined as land plus its man made improvements added to it. You know things like fences, houses, and driveways. So when you buy real estate this is what you can expect to be getting.

Real property

Real property is land, real estate, and what’s call the bundle of rights. The bundle of rights consist of five rights, the right to possess, control, enjoy, exclude, and lastly dispose. So basically you can possess, take control, enjoy, exclude others, and then dispose of your real property as you wish as long as you do not break state and federal laws.

Lastly there are two other types of property we should mention.

Fixture

Fixture is personal property which has been attached realty and by that now is considered real property. So you would ask yourself upon selling to determine value “did you attach it to make it permanent?” The exceptions to this rule are the garage door opener and door key, these are not considered fixtures.

Trade Fixtures

Trade fixtures are those fixtures installed by say a commercial tenant or can be the property of the commercial tenant.

I hope this clears up some misconceptions about personal property, realty, land and real estate and now fixtures and trade fixtures!

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India, The Tourist’s Paradise

India is a land that offers a mind-boggling diversity of natural beauty, flora and fauna, a rich, vibrant and proud history of cultural heritage and is famous for its hospitality to people who are fascinated by the numerous stories enchanting stories about India and come To visit the country. And the country does not disappoint them. The majestic snowcapped mountains, the lush rolling valleys, the gushing rivers, green fields, gorgeous colorful flowers and luscious fruits, the arid deserts, the plateaus, the hills, the tea gardens on the mountain slopes, the orchards, the waterfalls, the list Simply goes on and on. Every year, thousands of tourists from different parts of the world flock to this country for visiting different places, to enjoy different festivals, to take part in adventure tourism, pilgrimages etc. Tourism is one of the largest service industries in India and plays a major role in providing employment to the population and the country's economy. The tourism ministry in the country caters to the various demands and needs of the tourists. The India Tourism Development Corporation is a Government of India undertaking dedicated to taking care of travel needs like hotels, flights, trains, car rentals etc.

If you are coming to India the first time, it is advised that you read about the various destinations you are planning to visit and make full arrangements for accommodations. There are reputed hotel chains which have luxury hotels in different tourist destinations of the country. You can make your bookings online or over the telephone using the useful contact information available in their websites. Check out these sites and know more about the facilities, the tour packages, the tariffs etc available here.

If you are traveling on a tight budget, then there are numerous hotels with affordable rates but with high living standards. Before booking you must ensure that the neighboring area is safe, proper transport facilities are available and you can communicate with the outside world too. Book your hotels, cars etc online and enjoy a reliably hassle-free vacation.

The tourism board advises tourists to contact only fully authorized, reputed and trustworthy tour guides and tour operators to ensure a safe travel. These guides should at least have photo identity cards issued by the Ministry of Tourism. Arrange for proper transportations that will take you to different parts of the country. If you want to visit the more remote and somewhat inhospitable areas like the mountains of Ladakh, or the arid deserts of Rajasthan or forest safaris, then you must take proper precautions against potential dangers, diseases etc.

To arrange for flights, search online for cheap flights to India if the budget is limited. There are many websites which list information about flight ticket prices from different airlines, compare the prices and provide you with the best results. You can also opt for affordable holiday packages in India along with affordable accommodations and transportations. Search multiple travel portals to obtain the best options and cheap tickets to India. Just type in your destination and the sites will return a list of airline ticket prices for you to choose from.

Welcome to India and enjoy a vacation experience of a lifetime!

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Insurance Claim Supplements – How to Submit Claim Supplements

A claim supplement is a claim for additional repair or replacement costs. Supplements are commonplace in the claims process. However, if you are a policyholder unaware of your policy rights, you could be walking away from hundreds or thousands of dollars that you are entitled to collect.

Claim supplements usually occur after a policyholder submits a claim, gets paid and gets the repairs or replacements completed. Then, additional damage is discovered some time later.

Many people erroneously think that, once the claim is closed, it cannot be re-opened. And, insurance companies and their adjusters usually don’t rush to tell you how to submit a claim supplement. So, what to do? Let’s look at car insurance claims and property insurance claims.

For any kind of supplemental claim, you must contact your insurance company and give them your original claim number. The best way to notify the company is in writing, sent Certified Mail. That way, you’ll know who signed for the letter. The insurer will have to re-open the claim. You might get the same adjuster as before, but maybe not.

Car Insurance Supplemental Claims

Lots of supplements happen when cars are getting repaired. Many times, hidden damages are discovered when the body shop begins dismantling the car. So, while the insurance company may have issued payment to the body shop from the original repair estimate, they will issue a second check for the supplemental repairs. Happens all the time, no big deal.

However, sometimes post-repair problems don’t show up right away. A good example is the Air Conditioning system. If you have a car wreck in July, you might not notice that your heater is malfunctioning until fall or winter. But when any damages are discovered that can be directly related to the original insured loss, you can submit a supplement. Simply document the damages and their cause and send the supplement to the insurance company. No additional deductible is assessed, since you already paid it once.

Property Insurance Supplemental Claims

Homeowners, Renters or Business insurance claims can find a need for a supplemental claim for some of the same reasons found in car insurance claims. Seasonal issues can bring up damages related to the original loss. But, some other issues might present themselves. You may have an expert’s report that shows additional damage attributable to the original loss. Your contractor may have found hidden damage that must be repaired. In any event, carefully document your claim and submit it to the insurance company.

Be sure that you are collecting all the money you are entitled to collect. Use supplemental claims whenever your claim requires it.

If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed below.

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Travel: Different Means of Travel!

Nowadays, there are many different means of travelling which include airplane or ships or trains or buses etc. you can choose your medium by keeping in view your interest, your priorities and of course your budget. Lets have some general over view of different means of travelling.

AIR: Air travel is the most recent means of moving from one place to another. Since its first usage, it has become so popular due to its many advantages that it is now the most used mean of travel by people for long routes. It is taken as an expensive choice although there are many air lines that are offering air flights quite cheaply but over all it is an expensive but most quick mean of moving from one place to another.

SEA: Sea is one of the oldest means of travelling. Ships were used for roaming even by Greeks and Egyptians. It remained the main source of travelling for quite a long time but after the invention of aero planes, it has somehow lost its place. Nowadays moving from one place to another by sea is rarely done and even when done it is mostly through large ships which are built for luxurious cruising for the more privileged people. Middle and lower class people can’t really enjoy in those huge and luxurious vessels.

TRAIN: Moving from one city to another by means of train is considered as the most reliable and affordable mean of travelling. Trains now for long have remained a top priority of people for travelling. Travelling by train has all the ingredients that it takes for a perfect travel as it is quick and reliable and cheap mean of travelling.

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Real Estate and the AMT: Rental Or Investment Property

The Alternative Minimum Tax is a very important consideration for taxpayers who own real estate because just about every tax rule applying to real estate is different for the AMT than it is for the Regular Tax. This article on Real Estate and the AMT will address those situations where the individual holds the real estate as an investment, typically as rental property. The differences in tax treatment between the Regular Tax and the AMT can be significant.

Interest expense

Interest paid on the mortgage taken out to acquire the property is fully deductible, both for the Regular Tax and the Alternative Minimum Tax. Unlike itemized deductions that allow a tax benefit for what amounts to personal expenses, the tax law generally allows all deductions a taxpayer has to make in the pursuit of business income. Thus, the limitations discussed in the previous article on home mortgage interest do not apply.

If, however, the equity in the rental property is used as security for an additional loan – a second mortgage, for example – then the taxpayer must look to how the proceeds of that loan are used to determine interest deductibility. If the proceeds are used for a car loan or to finance a child’s education, for example, then the interest is nondeductible personal interest. If the proceeds are used to improve the rental property, the interest is deductible.

Suggestion – it is best that taxpayers keep personal borrowings separate from business borrowings. Mixing the two creates recordkeeping challenges and can result in disputes with the IRS.

Property taxes

Property taxes paid on rental or investment property are allowed in full both for Regular Tax purposes as well as for the Alternative Minimum Tax.

Planning idea – if you have an opportunity to pay your property tax bill either this year or next, pay it in a year when you have enough income from the property so as not to generate a rental loss. This strategy can help avoid triggering the passive activity loss limitations described below.

Example – in Florida property tax bills are mailed in October, and are payable under the following discount schedule: November – 4%, December – 3%, January – 2%, February – 1%. If you have a loss from the property in 2010 but expect to generate income in 2011, do not pay your bill in November or December – forgoing that small discount could help you avoid the loss-limitation rules.

Depreciation

Depreciation is allowed for property held for investment. The portion of the cost allocable to land is not depreciable, but for the building itself and the furniture, appliances, carpeting, etc. a depreciation deduction may be taken.

Real property (this is the legal definition of the house or other building) held for rental/investment may only be depreciated for Regular Tax purposes under the “straight-line” method, over a useful life of 27.5 years. Thus, a property with $275,000 allocated to the building would be depreciated at the rate of $10,000 per year.

Personal property (this is the legal definition of things such as furniture, appliances, carpeting and the like) may be depreciated for Regular Tax purposes under an “accelerated” method over a useful life of five years. An accelerated method allows a larger depreciation deduction in the early years, in recognition of an obsolescence or decline-in-value factor that you see in new property (cars are a good example).

For purposes of the AMT, however, personal property may be depreciated only by using a straight-line method. Thus, an AMT item will be generated in the early years if the accelerated method is used.

Planning idea – for personal property consider electing the straight-line method for Regular Tax purposes. While giving up a little tax benefit from the greater depreciation in the early years, it could mean avoiding paying the AMT.

Active/passive investment rules and the “at-risk” rules

A taxpayer who is not “active” in managing investment property may not use losses from rental property to offset other income such as salaries and wages, dividends, interest, capital gains, etc. Instead, these losses are deferred until the taxpayer either sells the property or generates passive income from this or other passive investment sources.

The at-risk rules similarly deny using these types of losses to the extent the taxpayer has acquired the investment with borrowed money and does not have personal liability on the debt.

Planning idea

If these loss limitations apply, consider the planning ideas mentioned above to minimize the losses being generated each year. They are not doing you any good anyway.

Sale of the property

Several different AMT issues can arise on the sale of rental/investment property. One is that your gain or loss may be different for the AMT than it is for Regular Tax purposes. This would be caused if different depreciation methods were used. For example, if the personal property was depreciated using an accelerated method for Regular Tax purposes, then the basis in that property when calculating gain or loss on sale would be different because the straight-line method had to be used for Alternative Minimum Tax purposes.

Gain on the sale of investment property generally is capital gain, although a portion may be treated as ordinary income depending on the accelerated depreciation method was used. Capital gains in and of themselves are not an AMT item, but nonetheless they can result in AMT being paid. This is because the AMT exemption amount is phased out for taxpayers at certain income levels, so this additional income can have the result of reducing the exemption which in turn increases taxable income for purposes of the Alternative Minimum Tax.

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Single Premium Life Insurance – Pros and Cons

Single Premium Whole Life Insurance (SPLI) Explained

Most of the time, when we purchase life insurance, we agree to make monthly, quarterly, or yearly payments. There are some whole life policies which can be paid off, usually over a period of 7 years or more. But another way of purchasing coverage has begun to get more attention lately. This simply involves making one large payment in the beginning. The single premium is set to fund the coverage for the rest of an insured person’s life.

One obvious advantage might be the guarantee that life insurance is taken care of without having to worry about paying any more bills. One obvious disadvantage, as you may have already guessed, is the fact that this first premium must be pretty large.

Who Considers SPLI?

The type of person who may consider this unusual way of paying for a life insurance policy would have a lump sum of cash they are sure they will not need to spend for the next few years. They will also want to leave money to their estate, and they want to turn the cash they have into a larger life insurance death benefit. This way they can be assured they will be able to leave money to their kids, grand kids, or a favorite charity..

Advantages of Single Premium Life

  • Set it and Forget it – You can make on premium payment, and be assured you have funded a lifetime policy.
  • Estate Building – Most of the time, the cash will buy a death benefit of several times the original premium amount. For example, let us say that a healthy 65 year old could turn $12,000 into a $100,000 death benefit to leave behind. That was just an example. Premiums will vary.
  • Cash Value – Since the one large lump sum fund coverage, the actual cash valued of the policy should grow very quickly. The policy may have enough cash value to be borrowed against or cashed in at some future point. The cash value may grow by a set interest rate, or it may grow my some market index, like the S&P 500. This will be specified in the particular policy you buy.
  • Policy Provisions – Policies may have an accelerated death benefit, or provisions for early surrender or using some of the face value while the insured person is still alive in special cases. These cases could include terminal illness or nursing home confinement. These functions can give you a policy which performs “double duty.”

Disadvantages of SPLI

This product is not for everybody. Look at some of the disadvantages to consider.

  • You Need The Money – You must have the lump sum payment. Of course, the premium will vary by the age and health of the insured person, the insurer, and the amount of coverage you buy. The premium is usually several thousand dollars. This must be money that is not needed for the next few years, or ever. If this is in question, you may be better off by buying a policy with multiple payments.
  • Early Surrender Charges or Fees – Here’s why you must use money you will not need to live on. Most policies do have early surrender charges or fees. If you do have to cash in the policy before this term, set in your individual policy, you will probably get back less than you put in. You can only benefit if you can wait until the date of fees or surrender charges has passed.
  • Tax Considerations – These type of policies, purchased with one payment, are considered to be Modified Endowment Contracts (MEC) by the IRS. They do not have all of the tax advantages or regular life insurance.

Example of SPLI

Let us say that a 65 year old retired teacher has a pension and savings which enable her to live comfortably. She also has $12,000 in cash from her own parent’s estate. She would like to turn this cash into a much larger estate she can split with her son and a favorite scholarship fund.

In this case, she is able to purchase a $100,000 single premium life policy. This works out well for her in a few ways. This policy has a provision for an accelerated death benefit in the cash of terminal illness or nursing home confinement, so she does not need to worry about purchasing another long term care policy.

Is Single Premium Life Right For You?

In order to make a good decision, it will help to figure out what you own retirement planning goals are. This product can be a good solution for some people.

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How to Travel With Books – Advantage and Disadvantage of Travel Books

Is it necessary to purchase a travel book or is it realistic that we can get similar information from other resources? Usually, most individuals have a major question on buying a travel book. So here are the pros and cons of purchasing one such book.

Advantages of a Travel Book

A travel book, which may be a paperback or e-book, comes in handy while traveling. Glancing through a travel book enables you to understand the custom and culture of a particular place in the world. So you can adapt yourself to that particular environment and stay there comfortably for longer periods.

  1. They Come In Handy — The travel guide comes in various forms such as, e-books, paperbacks and the file formats. You can have easy access to these books, which would assist you with all details compatible to the region you are traveling to.
  2. They Provide Enormous Information — Electronic or traditional travel guides provide you with answers to all types of questions such as how to learn some sayings that can be used in the place where you are traveling to? How to get data on where to reside, what to see and where to eat? How to get a clear knowledge about the history of a specific region or the atmosphere that it has?
  3. They Suit To Your Requirements — To access full information about a specific country or a region, both types of general and specific travel books are made available. The e-book may easily fit into your e-book reader whereas the paperback can fit into your backpack.

Disadvantages of Travel Book

  1. The Price — The e-book and paperback travel guides are very expensive compared to the information obtained from travel websites or from those who have moved or traveled to that region.
  2. Qualitative Images In Travel Books — Most travel books are in black and white. Only a few e-books consist of colored photos. Hence make a thorough revision before purchasing a travel guide or an e-book.
  3. Travel Books Make The Trip Less Natural — Traveling can be made more spontaneous by acquiring suggestions from locals than from travel books.

Conclusion

Considering travel books is essential while you are scheduling to travel. At the same time, never fail to revise the pros and cons in order to make the trip, the most memorable one.

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Antigua Weather – Best and Worst Months to Go

Antigua has 365 beaches – one for every day of the year – and plenty of good weather to go with each one. But the island has its share of bad weather months, too.

Beside the beaches, Antigua and its companion island of Barbuda are known for good shopping, historical sites and plenty of hotels, resorts and restaurants.

The island has little variation in temperatures throughout the year, but strong peaks and valleys with rain.

Tourists will experience an average high monthly temperature of 85 degrees Fahrenheit, the World Weather Organization says. The average monthly low temperature is 75 degrees.

Antigua weather in June through October reaches average high temperatures of about 87 degrees Fahrenheit. They reach a low of 83 degrees in December, January and February.

Rainfall rates 3.6 inches per month. It reaches a high of 5.5 inches in September, with almost as much rain in October and November. These months have the most storm and hurricane activity of the Caribbean's annual hurricane season, which officially runs from July 1 to November 30. The islands also see higher rainfall in May, although not as much as the fall months.

Antigua weather in February sees rainfall reach a low of 1.5 inches, followed closely by March, January and April, respectively. February through April average about eight rain days per month, while August, October, November and December average 13 days a month.

The best time to visit Antigua is March and April, while the worst time to visit Antigua is September and October, according to the Caribbean Tourism Organization.

A combination of warm temperatures and light rainy make February through April along with June the least risky months for a vacation there. Likewise, Antigua weather in August through November along with May have the highest risk of rain.

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