One of the most important objectives is avoiding unnecessary asset erosion. Estate planning is not as simple as arranging for assets to get from point A to point B. You want this to take place without losing anything in the process, and though it may seem as though there should be no reason why you would, there are sources of asset erosion looming. The most formidable one is the federal estate tax. At the moment the estate tax exclusion is $5 million, and the rate of the tax is 35%. (The … [Read more...] about The Value Of Tax-Free Gifting
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Required Minimum Distributions and What they Mean to Retirement Plans
RMDs are an important concept when it comes not only to retirement planning but to estate planning as well. RMD stands for required minimum distribution -- the IRS requires you to take out a portion of your retirement account each year and pay tax on it. If you don’t take it out, you get hit with a penalty. When do you have to take an RMD? It depends on the retirement account and plan – many types of plans, such as a 401K, require that distributions begin April 1 following the year that you … [Read more...] about Required Minimum Distributions and What they Mean to Retirement Plans
Affordable Philanthropy With Donor Advised Funds
When you think American billionaires, two names probably come to mind: Warren Buffett and Bill Gates. Buffett, the renowned "Oracle of Omaha," seems to make his way into the news with surprising announcements. We saw one of these occasions last year when the Berkshire Hathaway chief and Microsoft CEO and founder Bill Gates stepped out and issued an unusual challenge. They asked the richest individuals in America to consider pledging to donate at least half of their fortunes to charitable … [Read more...] about Affordable Philanthropy With Donor Advised Funds
Is the Estate Tax Fair?
People who are engaged in estate planning must be concerned about the looming specter of the estate tax. The current estate tax exclusion is $5 million and the rate of the tax is 35%. So if you have more than $5 million, the portion of your estate that exceeds $5 million will be whittled down by more than a third when it comes time to pass along your legacy to your loved ones. While this might not sound like a problem to the average person, when 2013 rolls around the rate of the estate tax is … [Read more...] about Is the Estate Tax Fair?
Elder Law Concern: Long-Term Care Costs
If you want to be comprehensively prepared for the future you must be aware of all of the expenses that you may face as you reach an advanced age. It is important not to keep your head in the sand and simply hope for the best because when you are older you're going to be less capable of responding to challenges than you are earlier on in your life. When you recognize what the future may hold and start making plans in advance you can move forward with confidence knowing that you are in a position … [Read more...] about Elder Law Concern: Long-Term Care Costs
Probate: What It Is, What it Does, and How You Can Avoid It
Part one of two parts on Probate You’ve probably heard of the term “Probate.” Probate relates to the settlement of an estate by means of a specific process in the courts. Many estates are settled in Probate, but not all of them by any means. The most common Probates involve individuals who do not have a formal Estate Plan or Living Trust in place. Probate is put into practice in every state, although the procedures can vary. The intent of Probate is to offer a legal process for reviewing … [Read more...] about Probate: What It Is, What it Does, and How You Can Avoid It
Give Yourself a Break from Your Caregiver Long Term Care Duties
If you provide long term care as a caregiver on a regular basis, you know how demanding your job duties can be. While you’re helping your loved one with his or her daily care needs, it undoubtedly takes a toll on your body and your stress level. It’s important to give yourself the breaks that you deserve so you’re able to function and provide much-needed care. Here are some helpful tips: Ask for assistance. If you have other friends and family members who are able to help out with your … [Read more...] about Give Yourself a Break from Your Caregiver Long Term Care Duties
Appointing a Successor Trustee for Your Trust: Considerations
If you’ve decide to include a trust in your estate planning, you will need to carefully consider who you will choose as your successor trustee. While you’re able to serve as trustee of your trust, you need to pick a capable and reliable successor trustee to serve in the event of your incapacity or death. Take a look at the following information, for considerations that you should make when making this decision. When choosing a successor trustee, consider the following: Will he or she be able … [Read more...] about Appointing a Successor Trustee for Your Trust: Considerations
A Will Alone vs. An Estate Plan: Why, When, How?
We all know what a Will is: a person states his wishes for who gets what when he or she passes away. Having a Will is, of course, is better than not having one … but it may be nowhere near as beneficial to you as creating an Estate Plan. Here are some very basic facts about Wills vs. other legal Estate Planning tools that are available to individuals and couples who want to leave as much as possible to their loved ones: A Will becomes a public document when a person passes, and it is subject … [Read more...] about A Will Alone vs. An Estate Plan: Why, When, How?
Long Term Care: Caregiver Agreements
It’s becoming more and more popular for family members and friends to assist their loved ones with long term care needs. This can be a great way to keep a loved one in the home while also allowing her to live a more comfortable life. If you’re thinking about becoming a caregiver to your loved one, you may want to consider the use of a caregiver agreement. Caregiver agreements allow you and your loved one to create a care plan. Take a look at the information below, to better understand how a … [Read more...] about Long Term Care: Caregiver Agreements
