A lot of people procrastinate when it comes to estate planning because they assume that they can take action very late in their lives when the end is relatively near. They know that it is possible that they will die without ever getting to it, but they are not too concerned. These folks are under the impression that the state will take care of everything.It is true that the state would get involved under these circumstances. If you were to die without executing any estate planning documents … [Read more...]
Understanding the Federal Gift Tax
Do you know that there is a gift tax in the United States? Before you start to get worried about all the gifts that you have received over your lifetime without paying any taxes, it is unlikely that you violated any laws.We have a federal estate tax, but most people do not have to pay it because there is a large exclusion. This is the amount that can be transferred before the tax applies.At the time of this writing in 2019, the exclusion is $11.4 million. Each year there are adjustments … [Read more...]
Inheritance Balancing for Small Business Owners
One of the most compelling reasons to discuss your unique situation with an estate planning attorney is the simple fact that there are many different approaches to planning. As a layperson, there is no reason why you would or should be aware of all of them.However, in just about all instances, there are good solutions, even if the situation seems challenging.Estate planning for small business owners can fit into this category, and we will look at a couple of different scenarios that are … [Read more...]
Inherited Assets Get a Step Up in Basis
As estate planning attorneys, taxation is one of the subjects that we are asked about the most, and this makes sense. The Internal Revenue Service seems to want to know about every penny that finds its way into your pocket so you would assume that this would extend to inheritances.Plus, most people have heard about the existence of estate taxes so they assume that taxation comes with the territory. In this post, we will provide some clarity, with an emphasis on appreciated assets (assets … [Read more...]
Be Aware of the Caregiver Child Exemption
Before we get into the caregiver child exemption, we have to provide the necessary background information so you know why it may be relevant to you and your family.Medicare will serve as a health insurance foundation when you become eligible at the age of 65 if you have paid into the program sufficiently. However, there are out-of-pocket expenses, including 20% of all covered visits to doctors and outpatient care. You should educate yourself and budget for these costs in advance when you are … [Read more...]
Five Things to Know About Estate Taxes
Since the tax man seems to be involved in every financial transfer imaginable, you may assume that your family will be forced to pay some type of estate taxes. We are glad to be able to tell clients that in fact, most people do not have to worry about this form of taxation. However, those who do are facing a maximum rate of 40% that can have a very serious impact.In this post, we will provide five key pieces of information about death taxes that will give you a basic but broad understanding … [Read more...]
Understanding the Horrible Crime of Elder Abuse
One of the most pressing matters within the elder law community is the mistreatment of senior citizens. This is an absolutely horrible crime, and it is difficult to understand how anyone could target some of the most vulnerable members of our society. Sadly, it is a fact of life, and you have to confront it with pragmatism to be in a position to protect yourself. Shocking Forms of Abuse The National Council on Aging has covered a lot of ground with regard to the elder abuse problem on their … [Read more...]
Inheritance Planning: See the Entire Picture
If you were going on a trip somewhere and someone was going to be watching your home, you would make sure that they were prepared for everything that could occur. You wouldn’t simply give them the keys and hope that the rest falls into place. This is the mentality that you should apply to your inheritance planning efforts as well.It is important to ask yourself how your wishes will come to fruition after you are gone. Clearly, you state them in a legally binding document like a last will or … [Read more...]
Don’t Make a Nursing Home Your Sole Heir
Since so many people procrastinate when it comes to estate planning, when they do take action, they often look for “simple solutions.” They may use a do-it-yourself template or download that they got off the Internet to draw up a last will, and they feel as though they have satisfied their responsibilities to their loved ones.Of course, there is nothing stopping you from taking this approach, but it can be shortsighted. First of all, a last will is not always the best asset transfer vehicle … [Read more...]
Why Would You Use Irrevocable Trusts?
The most important reason why you should discuss your personal situation with a licensed estate planning attorney is because there are many different options. There is no one-size-fits-all inheritance plan that is right for everyone so you should learn about your options so you can make the right choices. With this in mind, we will look at the value of irrevocable trusts in this post. Incidents of Ownership One major distinction between the different types of trust is the ability to revoke … [Read more...]
