The matter of postmortem planning is something to take into consideration when you are planning ahead for the inevitable. Yes, you do have to execute all the appropriate estate planning documents. The basic estate plan would include a will and/or a trust, a living will, and durable powers of attorney at minimum. You may have life insurance as well, and if you do you must let someone know about your policy or policies. If you use a last will to direct asset transfers the person … [Read more...] about Postmortem Planning & Your Insurance Policies
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Powerball Winner Faces Immediate Estate Tax Exposure
Winning a large lottery is a dream come true, but you are faced with immediate estate tax exposure if you were to win over $5.25 million. A recent Powerball lump sum payout totaled almost $371 million. (The annuity option would pay over $590 million) . The ticket was sold in Florida, where there is no state income tax to pay. But 25% would be deducted from the lump sum for federal income taxes, leaving $278 million. You might think that paying almost $100 million in taxes would be enough, … [Read more...] about Powerball Winner Faces Immediate Estate Tax Exposure
Planning for the Stages of Aging
If you think about estate planning you might reduce it to the act of drawing up a last will to express your final wishes regarding monetary assets. This is a rather closed viewpoint because it doesn't really address the stages of aging. The majority of people don't pass away without going through these stages, and it takes intelligent advance planning to prepare for them. Retirement Planning When you reach the age of Social Security eligibility you do not magically gain the … [Read more...] about Planning for the Stages of Aging
Pet Planning Makes Dog Ownership Possible for Elders
Pet planning for dog owners may seem like something that is really not important because dogs have much shorter lifespans than humans. This may be true, but what if you bring a dog into your home as an elder? Dog ownership can be an ideal antidote for loneliness. As many of us are aware it is not uncommon for senior citizens to lose people close to them. They can subsequently feel quite a void in their lives. This can sometimes lead to depression. It's difficult to … [Read more...] about Pet Planning Makes Dog Ownership Possible for Elders
A Look at Recent Will Forgery Case
When you pass away interested parties are afforded the opportunity to challenge your will. However, they can't simply stamp their feet and say that they were treated unfairly. You have a right to leave inheritances as you see fit. Someone who wants to contest a will must do so under one or more of the appropriate grounds. One acceptable ground would be the contention that the will in question was executed by a testator who was not of sound mind. You have to be in full control of … [Read more...] about A Look at Recent Will Forgery Case
Consider the Odds When Getting Remarried
It is useful to consider the odds when you are getting remarried after having been divorced. There are various different theories with regard to why it is so, but a high percentage of divorced people who get remarried wind up getting divorced again. The majority of second marriages fail, and almost 3 out of every 4 third marriages do not withstand the test of time. Most people who get remarried after divorcing have children. From an estate planning perspective you have to consider … [Read more...] about Consider the Odds When Getting Remarried
Paul Kraft Weighs in on End of Indiana Inheritance Tax
The retroactive repeal of the Indiana inheritance tax is perhaps the biggest story circulating throughout the estate planning community here in the state of Indiana at the present time. Inheritances are no longer subject to a state inheritance tax if the decedent passed away after December 31st of 2012. An inheritance tax is potentially levied on each person who is receiving an inheritance. An estate tax is levied on the estate as a whole before inheritances are … [Read more...] about Paul Kraft Weighs in on End of Indiana Inheritance Tax
Financial Abuse of Elders an Ongoing Concern
The process of estate planning should ideally include preparations for the eventualities of aging. There are a number of different things to take into consideration, and one of them would be the possibility of declining cognitive capabilities or incapacity. With the above in mind we would like to highlight the significant threat that is posed by elder financial abuse. A survey that was conducted by MetLife suggests that almost $3 billion is lost each year due to this type of … [Read more...] about Financial Abuse of Elders an Ongoing Concern
The Estate Planning Value of Roth IRAs
Individual retirement accounts are obviously useful for those planning for retirement, but one type of IRA also has estate planning value. Traditional individual retirement accounts are designed to allow you to make contributions before you pay taxes. The assets in the account grow over the years and you are not taxed upfront. Once you reach the age of 59 1/2, you can start taking withdrawals without being penalized. However, you are going to have to pay income taxes on your … [Read more...] about The Estate Planning Value of Roth IRAs
Chained CPI Part of Proposed Budget
The budget that is being proposed by the executive branch for 2014 includes a shift toward calculating inflation via the use of a chained CPI or Consumer Price Index. The government has been using the Consumer Price Index for Urban Wage Earners and Clerical Workers to determine the rate of inflation. This determination is utilized to provide cost-of-living adjustments for people who are receiving Social Security benefits. Going to a chained CPI is going to save the program money, but … [Read more...] about Chained CPI Part of Proposed Budget
