We focus on matters that are of interest to senior citizens, and the laws that regulate individual retirement accounts are quite relevant. In December of 2019, the SECURE Act was enacted, and it established some new parameters for 2020 and subsequent years. In October of this year, a bipartisan measure that has been dubbed SECURE Act 2.0 was introduced, and it would mandate additional changes to the IRA guidelines. We will look at these provisions in this post, but first, we will review the … [Read more...] about IRA News: SECURE Act 2.0 May Become a Reality
Blog – Latest Articles and Updates
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
An Overview of 2021 Medicaid Spousal Impoverishment Standards
People that will qualify for Medicare should understand the Medicaid parameters because of an inconvenient truth. More than one third of elders will reside in nursing homes eventually, and Medicare does not pay for the custodial care that they provide. These facilities are very expensive, and married couples can be inundated with two different sets of nursing home bills. Medicare does cover nursing home care, and this is why it is relevant to seniors who will be enrolled in the Medicare … [Read more...] about An Overview of 2021 Medicaid Spousal Impoverishment Standards
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
Show Your Appreciation This Thanksgiving
Holidays can often put you in a reflective mood, and Thanksgiving is a special event that revolves around gratitude. When you sit back and think about the good things that have happened in your life, you can probably pinpoint people that helped you out along the way. Hold that thought for a moment and consider these statistics. According to a 2020 survey, 68 percent of American adults are going through life without any estate planning documents. You would expect younger adults to put it on … [Read more...] about Show Your Appreciation This Thanksgiving
Medicare Premiums and Deductibles Updated for 2021
Elder law attorneys focus on legal and financial matters that are relevant to senior citizens. Clearly, most seniors will rely on Medicare for health insurance, and many elders are on fixed incomes. It is important to fully understand the Medicare out-of-pocket expenses. We will provide an overview here, and we will also share the updated figures for the 2021 calendar year. Four Part Program There are four distinct parts that make up the Medicare coverage. Part A is the hospitalization … [Read more...] about Medicare Premiums and Deductibles Updated for 2021
Why Do People Use Trusts (Part 2)
In our previous post, we shared three reasons why people use trusts instead of wills, and we are going to look at three other scenarios here to conclude the series. Nursing Home Asset Protection A significant percentage of seniors require nursing home care at some point in time. Medicare does not pay for the custodial care that these facilities provide, and they are very expensive. In our service areas, you can expect to pay $80,000 or more for a year in a nursing home, and costs have been … [Read more...] about Why Do People Use Trusts (Part 2)
Why Do People Use Trusts (Part 1)?
We are going to explain some of the reasons why people use trusts in this post. Since there are so many of them, this is part one of a two-part series. Spendthrift Protections Many people want to protect the inheritances that they are leaving to loved ones who are inexperienced or not very good with money. This can be done through the use of a revocable living trust with a spendthrift provision. You would act as the trustee during your lifetime so you would retain total control of the … [Read more...] about Why Do People Use Trusts (Part 1)?
Answers to Questions About 529 College Savings Plans
When you leave inheritances to your loved ones, you are essentially giving final gifts. A college education may be the greatest gift of all, and you can use a 529 college savings plan to pave the way. We will explain the details here through a question and answer format. What is the basic structure of a 529 plan? A 529 plan has a structure that is similar to a Roth individual retirement account. You make contributions into the account after taxes have been paid on the income. The interest … [Read more...] about Answers to Questions About 529 College Savings Plans
Do I Report Living Trust Income to the IRS?
The living trust is an planning tool that is more effective than a simple will. We will share some of the advantages here, and we will also look at the way living trusts are taxed. Flexibility and Efficient Estate Administration When you have a revocable living trust, you can be the trustee while you are alive and well so you would retain complete control of the assets. For example, if you transfer your home into the trust, nothing would change. You would still live in the home as usual and … [Read more...] about Do I Report Living Trust Income to the IRS?
