In this post, we are going to look at the annual gift tax exclusion, which can be increased at the beginning of a year when the IRS deems it necessary. Before we focus on that subject, we will review the 2021 estate tax parameters, because the gift tax and the estate tax go hand in hand. 2021 Estate Tax Exclusion Increase The estate tax carries a robust 40 percent rate so it can have a significant impact on your legacy. Fortunately, a very small percentage of families have to pay the tax … [Read more...] about Has the Gift Tax Exclusion Been Increased for 2021?
Six Things to Know About a Simple Will
The simple will is the most commonly used estate planning document because most people do not consider the value of trusts. In this post, we will share five things that you should know about simple wills so you can go forward with a more thorough understanding of the pros and cons. Witnesses Are Required We practice in North Carolina, South Carolina, and Kentucky, and there is a minor difference with regard to the witnessing requirement. In Kentucky, you must sign your will in front of two … [Read more...] about Six Things to Know About a Simple Will
Resolve to Review Your Estate Plan in 2021
We are turning the page on the most unusual year that most of us have ever experienced, and the best thing many can say about it is good riddance. Fortunately, the future looks considerably brighter as we turn the page and welcome the new year. During this transition from one year to the next, people make resolutions of various different kinds. As an estate planning firm, we encourage you to work with us to review your existing plan because revisions may be necessary if it was established … [Read more...] about Resolve to Review Your Estate Plan in 2021
Nursing Home Cost Increases Exceeded Inflation Rate in 2020
Elder law attorneys focus on legal and financial matters that impact senior citizens, and living assistance is at the top of the list. The majority of elders will need help with their activities of daily living, and just over one third of seniors will eventually require nursing home care. A lot of people are not overly concerned about long-term care costs because they know that they will qualify for Medicare when they reach the age of 65. This coverage will definitely provide a solid … [Read more...] about Nursing Home Cost Increases Exceeded Inflation Rate in 2020
Step-Up in Basis Could Be Eliminated
There can always be legislative changes that impact estate planning matters so we keep our finger on the pulse of these issues. This dynamic is especially relevant when there is a transition from one party to the other in the White House. With this in mind, we are going to explain a potential change to the capital gains tax structure, and we will look at another tax issue that is looming over the horizon. Inherited Appreciated Assets Let’s say that your grandfather bought a thousand shares … [Read more...] about Step-Up in Basis Could Be Eliminated
IRA News: SECURE Act 2.0 May Become a Reality
We focus on matters that are of interest to senior citizens, and the laws that regulate individual retirement accounts are quite relevant. In December of 2019, the SECURE Act was enacted, and it established some new parameters for 2020 and subsequent years. In October of this year, a bipartisan measure that has been dubbed SECURE Act 2.0 was introduced, and it would mandate additional changes to the IRA guidelines. We will look at these provisions in this post, but first, we will review the … [Read more...] about IRA News: SECURE Act 2.0 May Become a Reality
Estate Tax Exclusion Will Rise in 2021
The federal estate tax exclusion is the amount that can be transferred before the estate tax would potentially be levied on the remainder. This figure is not permanently etched in stone because it can be changed by legislation. Once an exclusion has been mandated, there are annual adjustments to account for inflation. Since the year is coming to an end, the news is out about the increase for 2021. Throughout this year, the exclusion has been $11.48 million, and it is going up to $11.7 … [Read more...] about Estate Tax Exclusion Will Rise in 2021
An Overview of 2021 Medicaid Spousal Impoverishment Standards
People that will qualify for Medicare should understand the Medicaid parameters because of an inconvenient truth. More than one third of elders will reside in nursing homes eventually, and Medicare does not pay for the custodial care that they provide. These facilities are very expensive, and married couples can be inundated with two different sets of nursing home bills. Medicare does cover nursing home care, and this is why it is relevant to seniors who will be enrolled in the Medicare … [Read more...] about An Overview of 2021 Medicaid Spousal Impoverishment Standards
Have a Living Trust? You Still Need a Will
You may assume that the will/trust question is an either or situation. There is some truth to this, because you have to use one of them as your primary asset transfer vehicle. That being said, there are a couple of reasons why you still need a will if you have a living trust. Before we explain them, we will look at some of the benefits that living trusts provide. Consolidation of Assets and Incapacity Planning When you have a living trust, you make the trust the owner of the property that … [Read more...] about Have a Living Trust? You Still Need a Will
Show Your Appreciation This Thanksgiving
Holidays can often put you in a reflective mood, and Thanksgiving is a special event that revolves around gratitude. When you sit back and think about the good things that have happened in your life, you can probably pinpoint people that helped you out along the way. Hold that thought for a moment and consider these statistics. According to a 2020 survey, 68 percent of American adults are going through life without any estate planning documents. You would expect younger adults to put it on … [Read more...] about Show Your Appreciation This Thanksgiving
