When you are planning your estate as a person who has been financially successful you should be well aware of the looming specter of the federal estate tax. This death levy carries a 40 percent maximum rate. The amount of the exclusion in 2014 is $5.34 million. The exclusion or credit is the amount that you can transfer free of taxation. If you intend to transfer more than $5.34 million to your heirs you should consider tax efficiency strategies. When you are calculating the overall … [Read more...] about What Is a Qualified Personal Residence Trust?
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Indianapolis Incapacity Planning: What Is a Guardianship or Conservatorship?
Estate planning involves making arrangements for things that will take place after you die. However, if you want to be comprehensively prepared you should also consider the interim that will precede your death. With this in mind let's look at Indianapolis incapacity planning, guardianship and conservatorship. Indianapolis Incapacity Planning Representation in the Event of Incapacity People often become incapacitated late in their lives. Approximately 45 percent of people who … [Read more...] about Indianapolis Incapacity Planning: What Is a Guardianship or Conservatorship?
Consider Estate Plan Review in 2014
Many people procrastinate before they put an initial estate plan in place. Once they do take action, they put the documents in a lock box somewhere and forget about them. Inertia sets in, and that pattern of procrastination resumes. Estate planning should actually be viewed as an ongoing, dynamic process. Estate planning is a form of financial planning. It is an extension of the financial planning that you have done throughout your life. When you are managing your … [Read more...] about Consider Estate Plan Review in 2014
What Is a Supplemental Needs Trust in Indianapolis?
The ideal way to arrange for the transfer of monetary assets to your loved ones after you die will vary on a case-by-case basis. This is one of the reasons why you should discuss everything in detail with a licensed Indianapolis estate planning attorney before you make any decisions. When it comes to someone with a disability, you have to consider the matter of government benefit eligibility. In Indianapolis, many people with disabilities rely on Medicaid. Medicaid is a … [Read more...] about What Is a Supplemental Needs Trust in Indianapolis?
Indianapolis Legacy Planning: What Steps Can I Take to Preserve My Legacy?
Everyone is going to pass away, but we all make an impact that persists even after we are gone. This imprint is going to be felt organically, but there are steps that can be taken to strengthen the legacy that you will be leaving behind. Let's look at some of the steps that you can take to preserve your legacy in Indianapolis. Indianapolis Legacy Planning Address Estate Tax Exposure Your legacy is not entirely financial, but the financial part of the equation does exist. The … [Read more...] about Indianapolis Legacy Planning: What Steps Can I Take to Preserve My Legacy?
What Is the Nomination of a Guardian?
People are sometimes remiss when it comes to estate planning. They put it off for various different reasons. One of the primary reasons is the idea that there will always be time to take care of it later on. Younger adults often adopt this line of thinking. In fact, it could be argued that estate planning is more important for younger adults than it is for older people, especially when minor children are involved. With this in mind let's look at the nomination of a guardian. Who Would Care … [Read more...] about What Is the Nomination of a Guardian?
How Can I Leave My Estate to My Spouse Tax Free?
It can seem as though you are taxed in some way every time you receive an influx of income. You may also be taxed when you give away assets to others, because there is a gift tax, and there is an estate tax. Given the above, it would be logical to assume that you have to take some special steps to leave assets to your spouse tax-free. In fact, this is not the case. Most People Are Exempt From Estate and Gift Taxes There is a gift tax and an estate tax. However, most people don't pay … [Read more...] about How Can I Leave My Estate to My Spouse Tax Free?
Revocable Living Trusts in Indianapolis: Who Can Be the Trustee?
People are sometimes under the mistaken impression that trusts are only useful for wealthy people. Some types of trusts do accomplish objectives that are held by high net worth families. However, there are other trusts that really wouldn't satisfy these objectives. One of them is the revocable living trust. People who are extraordinarily wealthy have to be concerned about the estate tax. Many of them are also going to prioritize asset protection. A revocable living … [Read more...] about Revocable Living Trusts in Indianapolis: Who Can Be the Trustee?
What Is Medicaid?
Medicaid is a need-based, government run health insurance program. It is jointly administered by the federal government and each respective state government. The way that the Medicaid program works for all people of all ages is a subject for a different post on a different blog. As elder law attorneys we focus on Medicaid in a particular context. Long-Term Care Medicaid is a need-based program as we mentioned in the first section. To qualify you must have very limited … [Read more...] about What Is Medicaid?
Can You Give Tax-Free Gifts to Your Children?
Estate planning involves arranging for gifts to be given after you die. If you do arrange for assets to be transferred to your loved ones after you die, these transfers may be subject to the federal estate tax. This raises a logical question: can you give tax-free gifts while you are living and avoid the estate tax? Federal Gift Tax The estate tax was enacted in 1916. Shortly after this, people who were exposed to the tax started giving gifts while they were living to … [Read more...] about Can You Give Tax-Free Gifts to Your Children?
