It is a good feeling to recognize the fact that you will be able to provide significant financial resources to your loved ones after you pass away. However, coming into a large sum of money when you are not fully developed as a human being is not always a good thing. People who are in a position to bequeath life-changing amounts of money to their family members have had these concerns for generations. One solution is to make an heir the beneficiary of an incentive trust. As the name would … [Read more...] about Incentive Trusts Can Provide Guidance
Because of the fact that Medicare does not pay for long-term care many senior citizens wind up relying on Medicaid to pay for nursing home expenses. Medicaid planning can involve "spending down" so that you can stay within the upper financial asset limit of $2000. It should be noted that some of your personal property does not count toward this $2000 limit, including your primary place of residence. Divesting yourself of personal ownership of your assets is what spending down is all about. … [Read more...] about Medicaid Eligibility: Does My Trust Count?
The process of estate planning is a two-way street. On the one hand you as the individual doing the planning have to evaluate your assets, decide who is on your inheritance list, and make decisions regarding what everyone will be receiving. That's the side of the giver, but you also have to consider each recipient. There will probably be people on your inheritance list who are established and perfectly capable of handling any inheritances that they may receive. Giving someone who fits this … [Read more...] about Concerned About Money Handling Ability of an Heir?
There is an unlimited marital estate tax deduction. If you are a United States citizen and you are married to another citizen (and that marriage is recognized by the federal government) you can leave any amount of money to your spouse free of the estate tax. When it comes to everyone else there is a $5.25 million exclusion. You can only give a total of $5.25 million to the other people on your inheritance list before the estate tax would be applicable. At the current time the top rate of the … [Read more...] about No Marital Deduction for Non-Citizen Spouses
The federal estate tax can dramatically reduce the financial legacy that you are leaving behind to succeeding generations. As of this writing the top rate of the tax is 40%, and the exclusion is $5.25 million. What do you do if you have resources that exceed this $5.25 million exclusion amount? This is something that you're going to want to discuss with an experienced estate planning attorney who has a background assisting high net worth clients. There are various different courses of action … [Read more...] about The “Wait a While” Trust
It is important to go forward with the benefit of accurate information when you are planning your estate. If you harbor misconceptions you may make errors of commission or omission that can negatively impact your family members. With the above in mind let's take a look at three of the most common estate planning misconceptions. 1.) I am too young to worry about estate planning. This is a very commonly held notion, but in truth every self-supporting adult should have an estate plan in place. … [Read more...] about Three Common Estate Planning Misconceptions
People have some misconceptions about trusts. There are multiple different types of trusts, and they do not all accomplish the same things. With this in mind we would like to pass along three things that you should know about revocable living trusts. Medicaid Eligibility Some individuals have the idea that you are surrendering personal control of property that you place into any trust. They assume that they can convey resources into a revocable living trust as a way to reduce assets as they … [Read more...] about Three Things to Know About Revocable Living Trusts
One of the reasons why you would do well to get information from a licensed attorney is because there are some inaccurate notions floating around out there. You have to separate facts from fiction, and with this in mind we would like to look at two common estate planning and elder law myths Myth #1: I don't really need an estate plan. This is patently false. There are innumerable reasons why virtually all responsible, self-supporting adults should have an estate plan in place. The probate … [Read more...] about Estate Planning & Elder Law: Separate Facts From Fiction
Sometimes you have to confront delicate subjects head-on, and with this in mind we would like to look at estate planning techniques for people with children who are getting remarried. It takes a lifetime to accumulate the assets that comprise your estate. In many cases it takes more than one lifetime because you may have inherited money from your own grandparents and/or parents by the time you make this decision to remarry. While you may be very much in love you probably accumulated these … [Read more...] about Providing for Children After Remarriage
As the lawmakers were trying to reach a deal that would stop the country from going over the so-called fiscal cliff various proposals were presented. One of them would have negated the value of a popular estate planning device. The legal device that we are referring to is the intentionally defective grantor trust. Fortunately, as it turned out the agreement that was reached did nothing to reduce the efficacy of IDGTs. The name is going to get your attention right away because it raises an … [Read more...] about After Scare IDGT Strategy Remains Viable