Estate planning is sometimes viewed as an exercise in document creation. You simply express your wishes in writing and that’s the end of the story. It is certainly important to create a will or a trust to serve as the centerpiece of your estate plan with regard to leaving behind instructions. At the same time, you should be well aware of the estate administration tasks that must be completed after you are gone to bring your wishes to fruition. The Role of the Executor If you use a will as … [Read more...]
Be Aware of Medicaid Recovery Efforts
If you have worked and paid taxes for at least 10 years, or if your spouse has done this, you will qualify for Medicare when you reach the age of 65. This program will provide a health care insurance underpinning, but there are out-of-pocket expenses, and there is one huge gap. Medicare will pay for convalescent care after an injury or illness when recovery is anticipated. However, it will not pay for custodial care. This is the type of care that you would receive in a nursing home or some … [Read more...]
What’s the Difference Between SSI and SSDI?
As elder law and estate planning attorneys, we often have to explain details about government benefit programs to our clients. There are some programs that serve related purposes that have similar sounding names so there can be some confusion. This is certainly true of Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). Need-Based Benefit Supplemental Security Income is a program that provides monthly income to qualified people with disabilities who have very … [Read more...]
Can You Change a Living Trust?
One of the most commonly held misconceptions within the realm of estate planning is the idea that you lose all control of assets that you convey into a living trust. For this reason, many people don’t even consider the possibility. They are not prepared to make a decision that is etched in stone. This sentiment is understandable, but in reality, the most widely utilized trust in the field of estate planning is the revocable living trust. With a revocable trust, you can act as the trustee and … [Read more...]
Medicaid Income Rules for Healthy Spouses
Before we dive into the Medicaid Monthly Maintenance Needs Allowance, we should provide some general background information about long-term care costs. Most people will qualify for Medicare when they reach the age of eligibility, which is currently 65. This will provide a relatively solid health insurance underpinning, but there are out-of-pocket expenses. These include copayments, deductibles, and monthly premiums. In fact, the program only pays 80% of bills that you receive from doctors, … [Read more...]
Don’t Let the State Plan Your Estate
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...]
