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
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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
Wealthy New Yorker Died Intestate
When you go through life without an estate plan you are taking the risk of dying intestate. There are intestacy laws of succession that would hold sway if you die without a will or a trust stating your final wishes. While these laws allow for your closest relatives to inherit your assets, the specific distributions may not be in line with what you would prefer. Plus, it would take the probate court a good bit of time to sort everything out if you don't leave behind any … [Read more...] about Wealthy New Yorker Died Intestate
What Is a 529 Plan?
A 529 plan is a college savings plan that is offered by individual states. You contribute assets into the plan and they are invested, similar to the way that a 401(k) plan operates. You name a beneficiary who will utilize these assets to pay for college expenses. If the markets are favorable these assets will continually grow, and this growth is not taxable if the money is ultimately used for qualified purposes. These plans can be beneficial for those who are looking for estate tax … [Read more...] about What Is a 529 Plan?
Choose Trustee or Executor Wisely
When you use a trust such as a revocable living trust to direct the transfer of your remaining assets to your heirs after your passing you have to choose a trustee. The word trustee has some inherent implications. This individual or entity is going to be managing the funds that have been placed into the vehicle, and because of this fiduciary responsibility you clearly want to select a person or company that you trust. The utilization of a trust company or the trust department … [Read more...] about Choose Trustee or Executor Wisely
Senior Veterans Benefits Planning
With the cost of long-term care being what it is veterans benefits planning is very important for those who have served in the Armed Forces. How expensive is long-term care? The costs are going up every year, so it is hard to predict exactly how high they will climb over the next few decades, but as of 2012 a year residing in a private room in a nursing home averaged over $90,000 in the United States. If you're thinking that Medicare is the answer you are making a common error. … [Read more...] about Senior Veterans Benefits Planning
Living Trust Provides More Than Probate Avoidance
A revocable living trust is a good choice for people who would like to avoid probate. This is a legal process that an estate must pass through before the heirs receive their inheritances when a will is used to arrange for asset distributions. Why would you want to avoid this process? There are a few different reasons. One of them is the fact that probate is a public proceeding, and anyone can access the records. You may want your final affairs to be conducted … [Read more...] about Living Trust Provides More Than Probate Avoidance
Why Would You Want a Defective Trust?
If someone told you that you could work with an estate planning lawyer to create a defective trust how would you feel about that? Most people are automatically going to equate the term "defective" with something that is useless. In fact there is an estate planning device called an intentionally defective grantor trust that is in fact more effective than it is defective in practice. Some people have to take steps to gain estate tax efficiency. The estate tax exclusion is $5.25 … [Read more...] about Why Would You Want a Defective Trust?
Possible Estate Tax Hike in the Offing
The estate tax parameters were newly defined after the enactment of the American Taxpayer Relief Act of 2012. When you look back on the situation that was described as a path toward the fiscal cliff this precipice represented a plunge into a sea of tax increases and spending cuts. One of the taxes that would have went up was the estate tax. Under the laws as they existed throughout 2012 the top rate of the estate tax was going to rise to 55% in 2013 while the exclusion was reduced to … [Read more...] about Possible Estate Tax Hike in the Offing
