There are some misconceptions that people harbor with regard to trusts. The idea is that you would be giving up control of assets for one reason or another. This is true to a large extent, but there is more to the equation. Revocable Living Trusts There are various different types of trusts. Some of them are revocable, and there are also irrevocable trusts, and this is a very significant distinction. If you have been under the impression that you should use a will to express your final … [Read more...] about Living Trusts and Medicaid Eligibility
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Don't Overlook Advance Directives for Health Care
No one is particularly anxious to think about this type of scenario, but the hard truth is that many people become unable to communicate health care decisions late in their lives. When you are planning your estate, you can include an incapacity component to account for this possibility. Your incapacity plan should include advance directives for health care. One of these directives is called a living will. Unlike a last will or last will and testament, a living will does not have anything … [Read more...] about Don't Overlook Advance Directives for Health Care
How Is a Living Trust Funded?
The legal device called a revocable living trust may be the ideal centerpiece of your estate plan. You do not have to be extremely wealthy to reap the benefits, and this is something that many people do not understand. In legal terms, if you were to establish a living trust, you would be called the grantor or settlor. There is a trustee who would take care of the trust administration duties, and there would also be beneficiaries who would receive monetary distributions from the trust. You … [Read more...] about How Is a Living Trust Funded?
Is There Just One Type of Will?
When you think about estate planning, you may feel as though the process involves a choice between a will or a trust of some kind. Many people are under this impression, but even if you use a trust, you should be aware of the fact that there are different types of wills. The last will that you can use as an asset transfer vehicle is not the only type of will that can be used when you are planning your estate. Living Wills If you have a revocable living trust, you would still want to have … [Read more...] about Is There Just One Type of Will?
Free Report: Can I Take Back Assets in a Medicaid Trust?
People who work and pay taxes for any length of time will qualify for Medicare when they reach the age of 65, and just about everyone is aware of this fact of life. When you are younger, you probably don't think much about Medicare, so you may not know all of the facts. It would be natural to assume that Medicare will cover every health care matter that can come your way when you are a senior citizen. In reality, the Medicare program does not pay for long-term care. It will pay for … [Read more...] about Free Report: Can I Take Back Assets in a Medicaid Trust?
Can I Collect Social Security When I'm 62?
People sometimes hear incomplete information about government programs for senior citizens. As a result, they make certain assumptions, and they can harbor these misconceptions for extended periods of time. The ultimate outcome can be less than ideal, because plans may have been made based on sketchy information. This enters the picture when it comes to Social Security eligibility. You may have heard that you can start to draw a Social Security direct deposit when you are 62 years of age. … [Read more...] about Can I Collect Social Security When I'm 62?
Is an Inheritance Taxable Income?
When you are thinking about the position that your loved ones will be left in after you are gone, you would naturally wonder about taxation. Will your family members be forced to report their inheritances as taxable income? A simple answer to this question is no. An inheritance is not considered to be taxable income, but there are a number of things that you should take into consideration beyond this simple fact. Let's look at a few of them. Appreciated Assets The capital gains tax can … [Read more...] about Is an Inheritance Taxable Income?
Can I Leave Everything to My Spouse to Avoid the Estate Tax?
If you have looked into the subject, you may hear a general statement with regard to asset transfers between spouses. The surface statement would be that you are allowed to transfer an unlimited amount of property to your spouse free of the estate tax. In a broad sense, this is true, but there is a caveat, and there are intricacies to think about. We will look at the subject in this blog post. Marital Deduction The idea that you can transfer unlimited assets to your spouse free of … [Read more...] about Can I Leave Everything to My Spouse to Avoid the Estate Tax?
Retirement Planning: See the Entire Picture
If you ask any middle-aged person, he or she will invariably tell you that time passes incredibly quickly. It can be surprising to come to the realization that your 50th birthday is waiting just over the horizon, because you still consider yourself to be young. In a relative sense, a 50-year-old person is still young, but it is kind of late to initiate your retirement planning efforts. For most people, it takes a long-term, sustained effort to accumulate the resources that will be necessary … [Read more...] about Retirement Planning: See the Entire Picture
How Can I Protect a Spendthrift Heir?
How Can I Protect a Spendthrift Heir? from Paul Kraft If you use a will to state your wishes regarding asset transfers, you would be leaving lump sum inheritances. If you have a spendthrift in the family, this loved one could squander his or her inheritance quickly. … [Read more...] about How Can I Protect a Spendthrift Heir?
