It’s difficult to imagine a retirement plan without a 401(k) account, but in reality they have only been in existence for 30 years. A traditional 401(k) is a retirement savings plan, usually sponsored by an employer, which allows a person to save for retirement by having their savings invested. This savings tool defers income taxes for the employee on both the money saved and its earnings until the funds are withdrawn. With a 401(k) sponsored by an employer, a worker will normally have a … [Read more...] about The 411 on 401Ks
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What is Probate?
Probate is a legal process the courts use to take inventory of your estate and distribute your assets after you pass away. In addition to dispersing your belongings, it also ensures that all your outstanding debts have been paid and when probate is complete, that your estate is completely dissolved. To accomplish this feat, the probate court relies on the executor you named in your Will or on a personal representative designated by the court if no Will exists. This person is responsible for … [Read more...] about What is Probate?
What's the Difference Between a Will and a Living Will?
They sound like they might do similar things, don't they? But although both of these legal documents perform very important roles in your estate plan, a Will and a Living Will are actually very different. A Will is a document used to tell the courts how you would like your estate to be dissolved. This includes distributing your assets, paying off your debts and naming a guardian for your minor children if needed. A Living Will on the other hand, is a document that tells your healthcare … [Read more...] about What's the Difference Between a Will and a Living Will?
Solvent vs. Insolvent: What's the Difference?
When your estate gets to probate court, it can be classified in one of two ways: solvent or insolvent. Solvent means that there are still assets left over after all the debts have been paid. These assets are then distributed to the heirs as outlined in your Will or if there is no Will, in accordance with state law. An insolvent estate on the other hand, is one where the debts exceed the value of the assets. In this instance, all the assets are sold off but cannot completely cover the … [Read more...] about Solvent vs. Insolvent: What's the Difference?
How to Help Your Estate Planning Attorney Help You
Your estate planning attorney is a competent and knowledgeable professional who can help you create a solid estate plan in a timely manner. But you can hinder your attorney’s job if you do not do your part in the estate planning process. Write Down What You Want If you are already cognizant of some basic aspects of estate planning before you meet with an attorney, write down what you want out of your plan. Make a list of your beneficiaries and include a preliminary idea of what you would … [Read more...] about How to Help Your Estate Planning Attorney Help You
How to Create A Comprehensive Disability Plan
A mental disability or terminal illness can leave you unable to handle your finances and make your own medical care decisions. That is why it is important to create a disability plan. Without a disability plan, the legal system will decide who has control over your medical wellness and financial assets. Make a Medical Plan A mental or severe physical disability may leave you without the ability to tell your family members and doctors how you want to be cared for. If you would like to name … [Read more...] about How to Create A Comprehensive Disability Plan
How To Use An Incentive Trust
Do you worry that a family member may squander money you leave him or her? An Incentive Trust is a legal document you can create to disperse funds over time or as life goals are met. An incentive plan is a great way to encourage a child or grandchild to succeed in life and to teach them financial responsibility. Encourage Life Goals An Incentive Trust may encourage your loved ones to pursue their life goals and reach success without depending fully on an inheritance. Leaving an inheritance … [Read more...] about How To Use An Incentive Trust
Why Planning Your Funeral Is An Important Part of Your Estate Plan
When you pass away, your loved ones will be faced with planning your funeral. This can be a very difficult process during their time of grief, especially considering the array of decisions they’ll have to make and the huge expense that comes with a funeral. You can make this time easier for your family by making many of your arrangements before you pass away and since you have time to shop around, you may also save them a little money in the process. What Arrangements Should You Make? You … [Read more...] about Why Planning Your Funeral Is An Important Part of Your Estate Plan
What is Elder Law?
Ours is an aging population. The baby boom of the mid 1900's and advances in medical care have changed the face of our society, making senior citizens the growing majority of the American population. Elder law is a growing field that focuses on the legal needs of these older citizens. Some common aspects of elder law include: Estate Planning An elder law attorney can help you plan your estate. This mean making all arrangements for your assets after you have passed away. With the help of … [Read more...] about What is Elder Law?
Buying Insurance for Peace of Mind
Although “estate planning” might conjure up images of Wills and Trusts, buying the right insurance is also a part of creating a comprehensive plan for your estate. Of course these days, you can get insurance for just about anything – so, which policies do you really need? Health Insurance Maintaining good health is important to your financial well-being because it allows you to keep working and paying your bills. But even the most health-conscious can become sick or injured, so having … [Read more...] about Buying Insurance for Peace of Mind
