If you are in possession of a considerable store of wealth, you should be well aware of the potential impact of the federal estate tax. Here in Indiana we do not have a state-level estate tax to contend with, but the federal death tax looms large for high net worth families. Asset transfers to your spouse (assuming your spouse is an American citizen) are not taxable under any circumstances, but transfers to anyone else, even your children, are potentially subject to taxation. The first $5.43 … [Read more...] about Are Life Insurance Proceeds Subject to the Estate Tax?
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Aging Parents and Nursing Home Costs
If you are an adult who has parents that are getting older, you may be concerned about potential nursing home costs. This is something that you should certainly take seriously, because nursing homes are extremely expensive, and Medicare does not pay for long-term care. When you look at the current state of long-term care costs, the numbers are pretty attention-getting. We practice law in the Indianapolis area. Fortunately, in our area nursing home costs are lower than they are in some of the … [Read more...] about Aging Parents and Nursing Home Costs
What Are the Top Three Estate Planning Priorities?
There are three rather subtle estate planning priorities that many serious minded people are concerned about, and it is instructive to learn about them. You may naturally assume that taxation is at the top of the list, but in fact, estate taxes do not impact most people. The federal estate tax carries a $5.43 million credit or exclusion. This is the amount that can be transferred before the estate tax would kick in, and clearly, most people have not accumulated this type of wealth. One … [Read more...] about What Are the Top Three Estate Planning Priorities?
How Often Should I Review My Estate Plan?
When you engage in any type of financial planning throughout your life, you invariably react to ever changing circumstances. Your own financial capabilities may evolve over the years, and of course, market conditions are always going to be in flux. Unfortunately, many people do not apply this logic to the subject of estate planning. They put an estate plan in place, they put the documents in a lock box, and they forget about the matter. In reality, estate planning should be seen as an … [Read more...] about How Often Should I Review My Estate Plan?
Why Do I Need a Power of Attorney?
A power of attorney is a legal device that you would use to empower an agent or attorney-in-fact to act on your behalf in a legally binding manner. There are various different reasons why you may want to grant this power, but a specific type of power of attorney is used to account for incapacity. We specialize in estate planning and elder law matters, and incapacity planning is an important part of the equation. People often become unable to make sound decisions on their own at some point in … [Read more...] about Why Do I Need a Power of Attorney?
Should I Download Estate Planning Documents Off the Internet?
People are often willing to take on DIY projects. This has always been the case, but you can now find resources on the Internet that can provide useful information. In fact, there are websites that allow you to download estate planning documents. You fill in the blanks on these boilerplate estate planning documents, and you are supposed to be good to go. This could be described as an oversimplification. First of all, when you think about estate planning documents, you may think about a last … [Read more...] about Should I Download Estate Planning Documents Off the Internet?
Estate Planning: What Do I Need to Know?
You may not spend a lot of time thinking about estate planning. In the back of your mind, you may feel as though you should create a last will someday, but you may not take it any further than that. This is a risky way to approach the subject of estate planning. In fact, there are some things that you may not have thought about, and we will take a look at some of them in this blog post. Estate Tax There is a federal estate tax that carries a 40 percent maximum rate, and no, that is not … [Read more...] about Estate Planning: What Do I Need to Know?
Do Assets In A Living Trust Get A Step-Up in Basis
Do Assets In A Living Trust Get A Step-Up in Basis from Paul Kraft Assets that have been conveyed into a living trust would be transferred to the beneficiaries after the passing of the grantor. Learn more about living trust get a step-up in basis in this presentation. … [Read more...] about Do Assets In A Living Trust Get A Step-Up in Basis
Is Estate Planning Strictly for Senior Citizens?
The average life expectancy in the United States is between 78 and 79 years at the present time. Clearly, most people expect to live for at least this long, but this does not mean that estate planning is strictly for senior citizens. People take precautions of all kinds. You may have insurance on your car and your home, even if they are paid for, because you want to make sure that you are covered if anything happens. Younger adults who are probably not going to get seriously ill carry health … [Read more...] about Is Estate Planning Strictly for Senior Citizens?
Why Would I Use a Trust Instead of a Will?
You may not give estate planning a lot of thought. When you do, the document called a last will may come to mind. When you get ready to take action, you can just draw up a last will, and you will be good to go. In reality, this is an oversimplification. In many instances, a trust would be a better choice. Let's look at some of the reasons why you may want to use a trust instead of a will. Efficient Asset Transfers When a will is used, it must be admitted to probate. The court supervises … [Read more...] about Why Would I Use a Trust Instead of a Will?
