Preserve Your Wealth with Medicare Part D
The article provides a basic overview of Medicare Part D and why it is important from an estate planning perspective.
Five Reasons To Plan Your Estate Now
We can all come up with reasons to procrastinate and avoid doing what we should. However, there are many reasons to avoid procrastination when it comes to estate planning. Here are five of them:
Five Common Estate Planning Mistakes and How to Avoid Them
Estate planning is a complex weave of legal and personal objectives. Issues of taxation, family law, and business entities combine with the most personal of family concerns. Attorneys that focus on estate planning face this challenge and have experience in meeting their clients’ needs in planning to achieve personal and financial objectives. Here are some common mistakes made by attorneys that do not focus their practices in estate planning.
Plan Now or Pay Later
Krispy Kreme and Wal-Mart have a lot in common. Die-hard fans line up in front of their locked doors the night before grand openings, licking their lips for a puffed up glazed doughnut or a bargain that can set the neighbors talking over the fences. But what do these two incredibly successful businesses and the families that started them have that sets them apart?
Get an Estate Plan — Not an Estate Scam
Estate planning is an important part of life. In fact, it is central to who we are as people. In planning for our future, we must analyze who we are, what our goals are, and whom we wish to help in this world. It makes us aware of our own mortality, but also the impact we can make in the world. A qualified estate planning attorney can help you with this important and intimate process — accomplishing your goals in the best, most tax efficient manner.
Planning for the Future Without a Crystal Ball
hen planning for the future, none of us has a crystal ball. So, we must plan our affairs based on current circumstances while trying to anticipate a whole range of possible future events.
IRA and 401k Beneficiary Designations: Not to Be Taken Lightly
If you are like most Americans, you have money taken out of each paycheck for your IRA, 401k, or other retirement plan. Those deductions add up over time. Over the past twenty years, IRAs and 401k plans have become an increasingly important part of our lives. According to statistics from the Investment Company Institute and the Federal Reserve Board, retirement plans account for nearly $11 trillion in American wealth. For many Americans, this becomes their largest asset.
Do You Know IRA? Shattering Some Misconceptions Surrounding the Individual Retirement Account
These days, traditional Individual Retirement Accounts ("IRAs") are common retirement savings vehicles. They provide individuals with a means to finance their retirement whereby the amounts set aside, as well as the growth, are not taxed until its withdrawal at the owner's retirement or other date. But even though many people utilize this beneficial form of investment, many misconceptions still remain regarding the rules that govern IRAs. Once these misconceptions are corrected, it's possible to reap the full benefits of an IRA.
Taking Care of Loved Ones after Your Death: Don't Forget Fido and Fluffy
The close bond that develops between a person and their pet is undeniable. Many of us have experienced firsthand the joy and companionship a beloved pet can bring into our lives. In fact, studies show that Pet Facilitated Therapy ("PFT"), in which regular interaction is introduced between the elderly and household pets, such as cats and dogs, results in positive social behavior changes such as a decrease in patients' sense of loneliness and social withdrawal. Regardless of one's age, pets play an increasingly important role in people's lives. As such, you don't want to be left with the following unanswered question: Who will care for your beloved animal companion upon your death?
How to Gift Assets to Your Children: "Look, But Don't Touch"
Contrary to popular belief, the Internal Revenue Service ("IRS") does provide taxpayers with certain tax breaks. One example is the annual gift tax exclusion. Generally, the gratuitous transfer of assets is subject to a gift tax. However, each taxpayer can annually transfer $10,000 worth of assets, per recipient, free of gift tax ($20,000 for a married couple). Gifting assets provides an excellent means of removing assets from a person's taxable estate, thereby avoiding the Federal estate tax upon death, a tax that peaks at 55%.
The Death of the Estate Tax Will Not Spell the Doom of Estate Planning
With all the speculation caused by the passage of HR-8, the Death Tax Elimination Act of 2000, and its recent veto by President Clinton, many have wondered whether there will be a need for estate planning in the future. Thomas Stanley, author of estimates that Baby Boomers stand to inherit an aggregate $20 trillion in wealth over the next 20 years. This will be the greatest inter-generational transfer of wealth in history. Irrespective of whether the estate tax is repealed or not, the World War II generation will seek ways to protect and preserve this wealth for their children and future generations to come.
A Power of Attorney or the Powers That Be . . . Make the Right Choice
It’s likely that you’ve heard of the Power of Attorney (POA). Most people have. We generally assume it’s a way for someone else to take control of our assets if we become incapacitated or, as we often see in the movies, we are “declared incompetent.” This can be true, but there’s a lot more to it than that. The POA is a way for you (the principal) to give some control of your assets or your medical care to another person (the agent or attorney-in-fact).
You Might Not Have to Bite the Bullet: What to Do about Capital Gains Taxes
So, what are capital gains anyway? Capital gains are the profits from the sale of capital assets such as stocks, bonds or real estate. Your wages or other regular income (i.e. interest, dividends) are considered “ordinary” income and subject to different tax rates.
Have It Your Way - Even After You're Gone
According to a recent article, parents are becoming ever more concerned about leaving large inheritances to their children. As a result, they are looking for estate planning tools that will help them to maintain some control over those inheritances even after they're gone. You can spend your money however you choose. It's your choice whether you want to manage it with incentives or simply control how much money is disbursed to your heirs. Family Incentive Trusts (FIT), as they are now being called, are becoming increasingly popular, especially for those with very large estates.
Don’t Let Probate Get You…Twice
Almost everyone dreams of someday owning a little log cabin on a river in Montana or a beachfront condo in California or Florida. For some, a simple timeshare will do, or maybe you want to retire to Arizona and play golf and retain your family home as a rental property. Perhaps your family has property that has passed down from generation to generation and you want to continue that tradition. Many people end up owning more than one piece of property in their lifetime, and often those properties are not located in the same state. As if estate planning weren’t confusing enough, what can you do when you own an interest in real estate in another state?
"Special Needs Trust" Needs Special Trustee
When children face a lifetime of significant medical expense, parents often turn to a "special needs trust." The beneficiary is usually eligible for Medicaid benefits, or soon will be. The goal of a special needs trust is to provide a source of money to benefit a child without jeopardizing this eligibility.
A Trusted Way to Keep Your Home in the Family
For many Americans, a home is more than a symbol of security and place of memory. It's also the most valuable asset-and that puts it solidly at the center of serious estate planning.
Special Trust Thwarts Medicaid “Smash and Grab”
It’s an increasingly common question in estate planning: what can older parents do to ensure long-term health care costs don’t consume the family wealth? Medicaid, the government’s health care safety net, won’t cushion your fall into poverty until you’ve depleted most of your assets. By then, the inheritance you planned for your loved ones might look pretty paltry.
When Joint Tenancy Trumps a Will
Joint tenancy offers some short-term conveniences, but can also cause you and your family a slew of problems in the long run. Married couples, friends, parents and children all rely heavily on joint tenancy when they purchase a home, car, or other costly asset. Consumers aren't always aware of the expense and headache that joint tenancy brings about. In a recent Tennessee estate planning case, the dispute arose when joint tenancy precluded the terms of a will.
Keeping Control of Gifts to Minors
Parents and grandparents can significantly reduce the amount of estate taxes ultimately imposed on their estates simply by making lifetime gifts to children and grandchildren. The estate tax savings can range from 37 to 55 percent of the amount of the gift. Not only do the gifts reduce the estate of the donor, but any appreciation also escapes the donor's estate.
Estate Planning for Children of a Prior Marriage
According to recent reports, more than half of all marriages in America eventually can be expected to end in divorce. Add in widows and widowers to the numbers of divorced couples, and the potential for a second marriage that includes children of a prior marriage increases.
Special Children Require Special Estate Plans
Raising and caring for children is a lifetime commitment. Parents of a child with special needs (disabled, mentally retarded) have a much bigger responsibility both during their lives and after they're gone. They need to plan their estates properly to ensure their child remains well-cared for and is still eligible for government and private aid. This article addresses these important issues.
A Special Child Needs Special Planning
Thanks to Ron Bradley who suggested the subject of this relevant article which discusses the unique estate planning needs confronting parents of disabled children.
