The simple will is the most commonly used estate planning document, but many people who utilize them make the mistake of overlooking trusts. In this post, we will share five key pieces of information about wills so you can go forward with a more complete understanding.Guardian DesignationEveryone is aware of the fact that you can use a will to state your wishes regarding the way you want your assets to be transferred after you are gone. You can also name a guardian for dependent children if … [Read more...] about Five Key Facts About Simple Wills
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SECURE Act 2.0 Would Bring Big IRA Changes
As elder law and estate planning attorneys, we pay close attention to legislative changes that can impact our clients. At the end of 2019, one of these situations started to come to light, and it became a reality when the SECURE Act was enacted in December.The changes took effect in 2020, and they affected some key rules for individual retirement accounts. In October, a fresh piece of bipartisan legislation that is being called SECURE Act 2.0 was introduced to expand the IRA … [Read more...] about SECURE Act 2.0 Would Bring Big IRA Changes
Updating Your Plan: Powers of Attorney
This is the first in a two-part series of articles on updating your plan. This first article examines the importance of updating Powers of Attorney, both Financial and Medical. The second part of the series looks at the importance of updating your primary estate planning documents, such as your Trust or Will. Together, these documents are the keystone in even the most basic estate plan and it’s important to keep them up-to-date.First, what’s a Power of Attorney? It’s a document by which you … [Read more...] about Updating Your Plan: Powers of Attorney
Tax Planning for 2021
As 2020 draws to a close and a new year dawns, we need to think of…tax planning! Some years Congress tweaks the laws more than other years. While 2020 held plenty of surprises with coronavirus and an election, it was a relatively quiet year for legislative changes. Still, even in a quiet year, some things change due to inflation increases, etc.Estate Tax PlanningApplicable Exclusion rises from $11.58 million in 2020 to $11.7 million in 2021.GST Exemption rises from $11.58 million in 2020 … [Read more...] about Tax Planning for 2021
Stepped-Up Basis Is Under Siege
They say that elections have consequences, and this is true on multiple different levels. When a new administration enters the White House, there are usually some changes to the tax laws, and they sometimes affect estate planning strategies.There are a couple of specific provisions that are in the crosshairs, and one of them is the step-up in basis that applies to inherited appreciated assets. We will explain this scenario first, and then we will move on to the second potential … [Read more...] about Stepped-Up Basis Is Under Siege
Four Key Facts About Probate
If you use a Will to facilitate the distribution of your estate, the executor who you name in the document would act as the administrator. The executor would be required to admit the will to probate, and the court would supervise while the estate is being administered.During probate, the assets are identified and inventoried by the executor, and they are prepared for distribution. The court will determine the validity of the will, and creditors will be notified and paid by the … [Read more...] about Four Key Facts About Probate
Four Reasons to Steer Clear of DIY Wills
There are websites that sell generic, boilerplate legal documents, including simple wills. Their commercials make it sound like it is easy for anyone to get their affairs in order using DIY estate planning forms they purchased online.Since so many people put estate planning on the back burner, this can sound like a simple solution, but this is actually a shortsighted perspective. In this post, we will look at four reasons why you should probably steer clear of do-it-yourself estate planning … [Read more...] about Four Reasons to Steer Clear of DIY Wills
Former Zappos CEO Tony Hsieh Died Without a Will
When people pass away when they are relatively young, it serves as a reminder about the fragility of life. You never know what the future holds, and a completely unexpected event can change everything in the blink of an eye.Tony Hsieh was a visionary entrepreneur that passed away on November 27th in Connecticut from complications of smoke inhalation and burns. He was a resident of Las Vegas, but he was visiting a friend at the time.His rise to entrepreneurial success was meteoric. After … [Read more...] about Former Zappos CEO Tony Hsieh Died Without a Will
These Mistakes Can Damage Your Legacy
Families sometimes seek legal assistance because they are looking for damage control after a loved one has passed away. Estate planning mistakes were made, and the surviving family members are forced to deal with difficult circumstances.These situations are frustrating because they could have been avoided if the decedent had received the right guidance. With this in mind, we will look at some of the mistakes that can damage your legacy in this post.DIY Estate PlanningThere have been many … [Read more...] about These Mistakes Can Damage Your Legacy
What’s an “Atom Bomb” or “Contingent Remainder” Beneficiary?
When you’re planning your estate, among other things, you decide who should inherit your assets. You choose your beneficiaries, typically your children, grandchildren, or other close relatives. But what if all the beneficiaries you’ve chosen and all their descendants have died? Then it would fall to the “contingent remainder” beneficiary.Often the “contingent remainder” beneficiary has a slang nickname, like the “atom bomb” beneficiary or “exploding turkey” beneficiary. The contingent … [Read more...] about What’s an “Atom Bomb” or “Contingent Remainder” Beneficiary?
