Medicaid is a health insurance program that is administered by the federal government in tandem with each respective state government. The program is intended for people who have very limited financial resources. You have to fit within very modest income and asset limits if you want to qualify for Medicaid. Medicare is also a government run health insurance program, and for the most part, it is designed to help senior citizens, though there are limited exceptions. This program is not … [Read more...] about Will My Trust Protect My Assets From Medicaid?
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Should I Use a Corporate Trustee?
If you are not extremely wealthy, you may assume that you should use a last will as a vehicle of asset transfer rather than a trust. This is a popular misconception, but it is just that, a misconception. There are different types of trusts. Indeed, there are trusts that are used by high net worth individuals who are exposed to the federal estate tax. This tax is potentially applicable on asset transfers that exceed $5.34 million. (This is the figure that is in place for … [Read more...] about Should I Use a Corporate Trustee?
Can Medicaid Take My Home?
Long-term care costs are something that you should take very seriously when you are looking ahead toward your retirement years. Medicare does not pay for assisted living, and this can come as a surprise to many people. When you look into the facts, you find that long-term care costs can be financially devastating. According to the state of Indiana, the average monthly charge for a room in a nursing home is over $5,500. This is an average that takes every area of the state … [Read more...] about Can Medicaid Take My Home?
Are Estate Tax Laws Subject to Change?
People who have enjoyed a great deal of financial success are often faced with estate planning challenges. You may naturally assume that you can leave assets to your loved ones free of taxation. After all, you paid many different taxes throughout your life. However, whether it is fair or not, there are taxes on large asset transfers in the United States. Transfer Taxes We have a federal estate tax, and it carries a maximum rate of 40 percent at the present time. The estate … [Read more...] about Are Estate Tax Laws Subject to Change?
Estate Planning: Is My Last Will Enough?
Some people oversimplify the process of estate planning. They reduce the endeavor to the creation of a last will, and they leave it at that. In reality, there are a lot of things to take into consideration. There are many different ways to facilitate future asset transfers. A last will may not be the best choice for you. If you have a last will, you lose a good bit of control. The assets would be divided like slices of a pie, and the inheritors would assume direct … [Read more...] about Estate Planning: Is My Last Will Enough?
What Is a Charitable Remainder Trust?
When you are planning your estate, you may want to consider your broader legacy. Giving back can be a very powerful thing, especially when you are thinking about how you will be remembered after you pass away. Acts of charitable giving can be rewarding on a personal level, and you can sometimes gain tax benefits when you give to charitable causes. There are various different ways that you can give to organizations and causes that are meaningful to you. Some people create private … [Read more...] about What Is a Charitable Remainder Trust?
What Is the Generation-Skipping Transfer Tax?
People who have been able to accumulate a significant store of wealth should be very aware of federal transfer taxes. In this post we will look at an often overlooked tax called the generation-skipping transfer tax. However, to understand the generation-skipping transfer tax, you need some background information about the the estate tax and the gift tax. Federal Death Tax The federal estate tax carries a 40 percent maximum rate, and this is an attention-getting number. There is … [Read more...] about What Is the Generation-Skipping Transfer Tax?
Am I Responsible for a Parent's Nursing Home Expenses?
Nursing home expenses are a major cause of concern within the elder law community. The senior population is aging rapidly, and the oldest segment of the population is growing faster than any other. When you reach an advanced age, you may well require nursing home care. In fact, according to government statistics, the vast majority of senior citizens will eventually need help with their activities of daily living. The Medicare program does not pay for nursing home … [Read more...] about Am I Responsible for a Parent's Nursing Home Expenses?
What is a Step-Up: In Basis?
What is a Step-Up: In Basis? from Paul Kraft When you are still in possession of assets that have appreciated, you do not have to pay the capital gains tax. Learn more about Step-Up In Basis in this presentation. … [Read more...] about What is a Step-Up: In Basis?
What Is An ILIT?
What Is An ILIT from Paul Kraft The acronym ILIT stands for an irrevocable life insurance trust.This type of trust can be useful if you are exposed to the federal estate tax. Learn more about irrevocable life insurance trust (ILIT) in Indianapolis in this presentation. … [Read more...] about What Is An ILIT?
