When Estate Planning practitioners talk about the “Holy Grail” of Estate Planning, they generally mean the intentionally defective grantor trust which includes the assets contributed to it in the grantor’s income tax for income purposes but excludes such assets from the grantor’s estate for estate tax purposes. The 529 plan provides yet another example of the “Holy Grail” in Estate planning by allowing tax-free growth, control of the plan until the death of the grantor without estate tax … [Read more...] about 529 Plans – The “Holy Grail” of Estate Planning
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Does Medicare Cover Nursing Home Care?
It is important to understand what you can expect from Medicare and Social Security when you are planning for retirement, including the limitations. We look at the details here, and we also provide a solution to a very significant potential challenge. Benefit Eligibility Parameters You become eligible for a full Social Security benefit when you are between 66 and 67 years of age depending on your birth year. There is a retirement benefits brochure on the Social Security Administration website … [Read more...] about Does Medicare Cover Nursing Home Care?
What Is the 2023 Gift Tax Exclusion
You can’t understand the relevance of the gift tax unless you have an understanding of the estate tax, so we will start there. Basic Federal Estate Tax Parameters Wealth preservation is key for high-net-worth individuals, and very successful people have to confront a threat in the form of the federal estate tax. The rate of the estate tax is a whopping 40 percent, so it can significantly erode your legacy. There is a federal estate tax exclusion that represents the amount that can be … [Read more...] about What Is the 2023 Gift Tax Exclusion
Is Your IRA Part of Your Estate Plan?
Your individual retirement account can serve as a nest egg during your senior years, but you may find that you do not need the resources. Under these circumstances, the IRA will be included in your estate plan, so you should understand the rules for beneficiaries. We will provide an overview in this post. Traditional Individual Retirement Accounts If you have a traditional IRA, you direct pre-tax earnings into the account. You get a tax break each year because your taxable income is reduced by … [Read more...] about Is Your IRA Part of Your Estate Plan?
Keep Your Estate Plan Current at All Times
When you put your original estate plan in place, you are going to be reacting to a snapshot of your life at that time. There is no other way to go about it, but you should be aware of the fact that revisions are probably going to be necessary as circumstances change over the years. Family Situation An estate plan for a single person will be simple and straightforward. You want to carry enough life insurance to cover your final expenses, and you should execute a simple will or a living … [Read more...] about Keep Your Estate Plan Current at All Times
Is Joint Tenancy a Good Estate Planning Solution?
It is said that a little bit of information can be a dangerous thing, and this certainly enters the picture when it comes to estate planning. There are those that share bits and pieces of what they think they know, and there may be some truth in the mix. However, an incomplete picture is often painted, and this can yield negative consequences in the long run. Probate Avoidance One of the first things you should understand about estate planning is the fact that a will is not administered … [Read more...] about Is Joint Tenancy a Good Estate Planning Solution?
Clearing Up Questions About Taxes on Inheritances
Many people that speak with us about their estate planning concerns bring up the question of taxation right away. This is understandable, because it is natural to assume that taxes can have a significant impact on your legacy. In this post, we will address these questions so you can come away with a more complete understanding of the subject. If you are named in a will, do you have to claim the inheritance when you file your federal income tax return? No, the inheritance would not be looked … [Read more...] about Clearing Up Questions About Taxes on Inheritances
Why Is Nursing Home Asset Protection Necessary?
A lot of people do not understand why they should be concerned about potential nursing home costs. They adopt this stance because they think that it is unlikely that they will need this type of care. After all, if you do need living assistance, Medicare will pay for it, right? Let’s take a look at these assumptions so you can go forward with the real facts. Long-Term Care Statistics The United States Department of Health and Human Services maintains a very useful website called … [Read more...] about Why Is Nursing Home Asset Protection Necessary?
Estate Planning Decisions: Is a Will Right for You?
A lot of people assume that a will is the only document that you need when you decide to plan your estate. The truth is, you ALWAYS need more than just a will. For some, there are situations that call for the utilization of a trust, and we will dissect the subject in this post. Lump Sum Inheritances There are severe limitations when you use a will to serve as your asset transfer vehicle. First, the people that are named as beneficiaries in a will may receive lump sum bequests all at once. … [Read more...] about Estate Planning Decisions: Is a Will Right for You?
The Not-So Transparent Corporate Transparency Act
Estate Planning attorneys need to understand multiple issues ranging from taxes to asset protection to create a comprehensive estate plan. Passage of the Corporate Transparency Act adds yet another layer to the already complex world of Estate Planning. Beginning on January 1, 2024, any company that qualifies as a Reporting Company needs to file a report with the Financial Crimes Enforcement Network (FinCEN) regarding its Beneficial Owners and individuals who helped register the Reporting … [Read more...] about The Not-So Transparent Corporate Transparency Act
