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
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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
Use a Trust to Address These Estate Planning Situations
Trusts are misunderstood by many people that are new to the concept of estate planning. There are multiple types of trusts, and they are not exclusively for very wealthy people. In this post, we will look at three reasons why you may want to utilize a trust when you are planning your estate. Estate Planning for Second Marriages If you are getting remarried as a parent, you may have concerns about the inheritances that you want to leave to your children. This type of situation can be magnified … [Read more...] about Use a Trust to Address These Estate Planning Situations
What You Need to Know About SECURE Act 2.0
IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly. Just when advisors began to get comfortable with the new 10-year rule, the United States Treasury Department promulgated proposed Treasury Regulations early in 2022 adding additional complexity to that rule by requiring annual distributions for a non-Eligible Designated Beneficiary of a participant who died after their Required Beginning Date. Once again, the SECURE Act … [Read more...] about What You Need to Know About SECURE Act 2.0
Can You Use Lifetime Gift Giving to Avoid Estate Taxes?
There are not many downsides to wealth accumulation, but there is an exception when it comes to estate planning matters. The federal estate tax can be a factor if the value of your estate exceeds the credit or exclusion, and it carries a hefty 40 percent top tax rate. 2023 Federal Estate Tax Exclusion In 2010, the estate tax was completely repealed because of a provision in the Bush era tax cuts, but it was scheduled to return in 2011. At the end of that year, the Tax Relief, Unemployment … [Read more...] about Can You Use Lifetime Gift Giving to Avoid Estate Taxes?
Estate Planning Tips for Blended Families
There are different estate planning approaches that can be taken depending on the circumstances. If you make assumptions without seeking legal counsel, you could make mistakes that yield negative consequences. With this in mind, we will provide some tips about estate planning for parents that are getting remarried in this post. Don’t assume that leaving everything to your spouse in a simple will is the right choice. On the day that you are getting married, there will be a great deal of … [Read more...] about Estate Planning Tips for Blended Families
Holistic Estate Planning: Anticipate the Eventualities of Aging
In part, our field is devoted to events that will take place after you pass away. At the same time, holistic estate planning should also address the eventualities of aging, and life as we age can be quite challenging. Cognitive Impairment A lot of people become incapacitated late in their lives, and Alzheimer’s disease or dementia are major culprits. It strikes about one third of the oldest old, and there are other causes of cognitive impairment. If you can no longer take care of your … [Read more...] about Holistic Estate Planning: Anticipate the Eventualities of Aging
The Lessons from Lisa Marie
Regular readers of this blog often see articles regarding the latest celebrity whose death created a mess because their Estate Plan failed to properly protect the celebrity’s family and loved ones. It seems that an individual with fame and money could easily avoid that result; however, that’s not always the case. The fallout caused by inadequate Estate Plans of celebrities provides great lessons for Estate Planning practitioners and their clients because the drama unfolds on a public stage. … [Read more...] about The Lessons from Lisa Marie
