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
Is Life Insurance Included in Your Estate Plan?
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?
Five Estate Planning Tips for the Modern Family
Sometimes impressions about certain subjects are passed down over the years, and the information that you get is outdated.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
Address Estate Administration Details
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
Has the Gift Tax Exclusion Been Increased for 2021?
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
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
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
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
