Before we look at the step-up in basis and a potential change that looms over the horizon, we should take a look at the broader tax picture. Most of the things that you need to know about how taxes can influence inheritances are surprisingly positive. An inheritance is not looked upon as taxable income by the IRS or state tax authorities, and this applies to insurance policy proceeds and direct bequests. If you bequeath an individual retirement account to a beneficiary, the distributions … [Read more...] about Inheritance Planning and the Step-Up in Basis
Requirement Minimum Distribution Waivers under the CARES Act
With all the talk about direct payments from the federal government and SBA loans created by the CARES Act, some very important news about Required Minimum Distributions (RMDs) has been largely overlooked. In response to the stock market drop due to the economic harm and uncertainty caused by the current coronavirus, Congress has made moves to waive RMDs for 2020 and permit some early withdrawals from retirement plans. First, the most relevant change for many of our clients is in … [Read more...] about Requirement Minimum Distribution Waivers under the CARES Act
The SECURE Act Has Made Significant Changes to IRA Rules
At the end of 2019, Congress passed the SECURE Act making significant changes to the distribution rules for inherited IRAs; these apply to individuals who die in 2020 or later. Most inherited IRAs must be now distributed within ten years of the death of the IRA owner, though there are still exceptions for surviving spouses, minor children, and disabled beneficiaries. This blog post will talk about some of these SECURE Act changes. We also have client law updates in Matthews on January 23 and … [Read more...] about The SECURE Act Has Made Significant Changes to IRA Rules
How to Protect Your Assets With Medicaid Planning
You may be surprised to hear that the Medicaid program pays for the majority of the long-term care that is received by seniors in the United States. Why is this the case when most seniors qualify for Medicare? Because Medicare does not pay for assistance with your activities of daily living. Medicare will pay for covered medical expenses and convalescent care after a three-day hospital stay, but it will not pay for long-term custodial care. This type of care is very expensive, and most people … [Read more...] about How to Protect Your Assets With Medicaid Planning
Living Trust Video
If you’ve just started looking into estate planning and have been doing some research, you may have run across an unfamiliar term: the inter vivos or living trust. What does the term “living trust” mean? Living trusts are also referred to as “inter vivos” trusts. The term is used to describe a trust made during your lifetime, unlike a testamentary trust, which only becomes active when you die. A living trust can be either revocable or irrevocable. The revocable living trust A … [Read more...] about Living Trust Video
