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...] about Inherited Assets Get a Step Up in Basis
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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...] about Be Aware of the Caregiver Child Exemption
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...] about Five Things to Know About Estate Taxes
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...] about Understanding the Horrible Crime of Elder Abuse
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...] about Inheritance Planning: See the Entire Picture
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...] about Don’t Make a Nursing Home Your Sole Heir
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...] about Why Would You Use Irrevocable Trusts?
Aims a Living Trust Will and Won’t Accomplish
A revocable living trust is a versatile estate planning tool that can be the right choice for a wide range of people. That being said, there are different types of trusts. Though a revocable living trust can satisfy multiple aims, there are other options that can be preferable under certain circumstances. We will look at the matter of trust selection in this post. Revocability and Incidents of Ownership There are people who never even consider the possibility of using a trust because they are … [Read more...] about Aims a Living Trust Will and Won’t Accomplish
Estate Planning for Young Adults
A brand-new 2019 study has been conducted by Caring.com to evaluate the estate planning preparedness of American adults. One of the most compelling statistics that they share on their site demonstrates the head scratching nature of the phenomenon. Around 76% of people surveyed say that estate planning is important, but only 40% of the people that believe this actually have estate plans in place. In all, 57% of adults in the United States have not have executed a last will, a living trust, or … [Read more...] about Estate Planning for Young Adults
Understand Government Retirement Benefit Programs
They say that days seem to drag on forever, but years pass far too quickly. Without question, it can be kind of shocking to sit back and see how rapidly time flies. This applies especially to the approach of your senior years. The sooner you start to prepare yourself, the better. One step will be to educate yourself about the government retirement benefits that you can expect to receive. With this in mind, we will look at some key facts about Social Security and Medicare. To warn you in … [Read more...] about Understand Government Retirement Benefit Programs
