Why should you work with an estate planning lawyer to put a plan in place? This is a broad question, and there are multiple different reasons why professional assistance is invaluable. There is no single approach to the process that is right for everyone. The ideal way to proceed will depend on the circumstances, and there are multiple ways to transfer assets. You should consider the life situation and personal proclivities of the people on your inheritance list and use the right tool for … [Read more...] about An Overview of Situational Inheritance Planning
A few weeks ago, we posted about a piece of legislation that could have an impact on your individual retirement account. We promised to share updates as the measure makes its way through the process, and we have some news to pass along. Before we look at the proposed changes, we will provide an overview of the two different types of accounts that are most commonly used to provide context. Traditional IRAs A traditional individual retirement account is funded before taxes are paid on the … [Read more...] about SECURE Act 2.0 Clears Hurdle
You have spent a lifetime accumulating your possessions, and many of them mean something to you. This is a beautiful thing, and when you are thinking about your legacy, passing these items along may be a very meaningful act. Without question, there are probably family heirlooms and other items that certain family members are fond of, not all items fall in this category. In these rapidly changing and challenging times, lifestyles are evolving, and you should take this into consideration … [Read more...] about Inheritance Planning: Advance Liquidation Can Make Sense
A lot of people procrastinate when it comes to estate planning because they don’t know where to begin. In this post, we are going to share five questions you can ask yourself to provide a starting point as you enter into the estate planning process. Are my heirs ready to handle their inheritances? This is a foundational question that everyone should answer before they make any estate planning decisions. You do not have to use a will that allows for all of the assets to be distributed to the … [Read more...] about Ask Yourself These Five Estate Planning Questions
A lot of people are not concerned about estate planning because they think it is a simple matter that takes care of itself. In reality, there are some very good reasons why you should take the appropriate steps in advance, and we will provide five of them here. Avoid a Tangled Web of Confusion Envision the situation that you would be facing if a close family member were to pass away suddenly with no estate planning documents. You and the others in the fold would be handling the emotional loss, … [Read more...] about Top Five Reasons to Plan Your Estate
We pay close attention to the surveys that measure the estate planning preparedness of people in the United States. Caring.com has been conducting annual studies, and they have released the figures for 2021. The Impact of the COVID-19 Pandemic There are events that remind us that people pass away at all ages, and tragedies can strike iconic figures with invincible personas. The Kobe Bryant helicopter crash would certainly fit into this category, and the relatively young former Zappos CEO Tony … [Read more...] about 2021 Estate Planning Survey: COVID Motivated Young Adults
A lot of people who do not have estate plans in place say that they have not taken action because they do not have sufficient assets. Life insurance can provide a solution, and we will provide the details in this post. Whole Life Insurance The two most prominent types of life insurance are whole life insurance and term life. When you have whole life insurance, a portion is set aside as an interest-earning savings component. This is typically referred to as the policy’s “cash value.” When … [Read more...] about Is Life Insurance Included in Your Estate Plan?
Sometimes impressions about certain subjects are passed down over the years, and the information that you get is outdated. With this in mind, we are going to provide five estate planning tips for the modern family in this entry. 1. You are not too young to put a plan in place. Surveys show that the vast majority of adults do not have estate plans, and this even applies to people in their 50s. Life expectancy in the United States is about 78 years overall, and it reaches into the mid-80s once … [Read more...] about Five Estate Planning Tips for the Modern Family
Unfortunately, most people do not have estate plans, and many who do have taken minimal precautions. The same folks say that they would do anything for their families, but somehow they have a blind spot when it comes to this subject. This is a very important responsibility, and it should be taken seriously. It doesn’t take an enormous amount of time, effort, or money to work with an estate planning lawyer to develop a solid plan. In addition to the use of a will or trust to facilitate … [Read more...] about Address Estate Administration Details
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?