A living trust is an estate planning tool that is commonly used by clients. Establishing a living trust has become a way to avoid the time and expense of probate. If you are considering including a living trust as part of your estate plan, you should know more about the living trust benefits you can expect.Understanding a Living Trust and How it WorksA "living trust" is a type of trust that becomes effective during your lifetime, as opposed to being established by your will upon your … [Read more...]
Can You Transfer a Mortgaged Home to a Living Trust?
A living trust is one of many important components of a good estate plan. Clients often have very important questions about how a living trust works and how you can benefit from including one in your estate planning. One question clients often ask is whether they can include their residence in a living trust even if that home is mortgaged. The Kansas City living trust attorneys at Gaughan & Connealy can answer this question and many others.Can Mortgaged Real Estate Be Placed in a … [Read more...]
Will the Agent of My Power of Attorney Become My Executor?
An Overland Park durable power of attorney is a useful tool that allows someone else to take control of and manage your affairs in case you become incapacitated. It must be specifically designated as “durable” so that it will remain in effect once you become incapacitated. Some clients assume that the agent given the control through an Overland Park durable power of attorney will automatically become their executor upon their death. That is not the case. Here is what you need to know.Agents … [Read more...]
When Should Kansas City Residents Access Their IRAs?
Although, generally speaking, you can access your IRA at any point, the issue is whether you will be charged a penalty. Because an IRA is meant to be a "retirement account," the laws are made to discourage you from raiding your IRA funds until retirement. However, as with nearly everything, there are exceptions.Planning Your Retirement with IRAsHave you created your retirement plan yet? It's not too late to start. If you want a comfortable retirement, you can't simply rely on your Social … [Read more...]
If I Complete a Durable Power of Attorney, Do I Still Need a Will?
Most estate planning attorneys believe in comprehensive planning and, as such, recommend that clients, at minimum, create both a last will and testament and a durable power of attorney. The two estate planning tools can be used in conjunction to protect you and your assets during your lifetime and after your death. The durable power of attorney protects you during your lifetime and the last will and testament governs what happens to your assets after your death.What is a Power of Attorney?A … [Read more...]
Turning the Page on 2018 and Looking Forward to 2019
As we turn the page and bid farewell to 2018, we look forward to 2019. There are a few changes for 2019. Going into 2018, there were many changes because of a new tax law, commonly known as the Tax Cuts and Jobs Act, which impacted both the estate tax and the income tax. But there are few changes heading into 2019. It appears things are relatively stable, taxwise, at least for now. Of course, the estate and personal income tax portions of the Tax Cuts and Jobs Act still are set to sunset, but … [Read more...]
Naming a Trust as Beneficiary of an IRA
With IRAs and Qualified Plans, after the death of the “Participant” (the lifetime owner), there are required minimum distributions based on the life expectancy of the beneficiary. Often, people think that an individual must be named as the beneficiary of the retirement assets in order to use the beneficiary’s life expectancy and to prevent a forced faster distribution. But that isn’t the case. A trust may be designated as the beneficiary. As long as the trust meets a few technical requirements, … [Read more...]
Estate Planning is About More Than Taxes
Estate Planning addresses many concerns, not just taxes. It can protect beneficiaries from their own creditors, provide divorce and remarriage protection, and protect the benefits of children with special needs.The new tax law doubled the amount that can be passed free of federal estate taxation, at least through 2025. In 2018, an individual can pass $11.18 million free from federal estate taxation. But estate planning was never just about estate taxation. The core of estate planning has … [Read more...]
Aretha Franklin Died Intestate: What Does It Mean for Her Family?
Aretha Franklin was known as the “Queen of Soul.” She was a singer, songwriter, civil rights activist, and so much more. Aretha was a great recording artist, with a career spanning many decades. She received honorary degrees from many prestigious universities, like NYU, Princeton, and Yale. She received the Presidential Medal of Freedom in 2005. In fact, we all owe her much “R-E-S-P-E-C-T,” just like the song for which she’s most famous.Aretha died on August 13, 2018, at age 76, without any … [Read more...]
If You Want to Retire in Missouri, Be Prepared!
According to at least one article, there are many reasons to retire in Missouri. But what good is finding a great place to retire if you don’t have sufficient financial resources to do so comfortably? If you haven’t created your retirement plan yet, it’s not too late. Instead of relying on Social Security Benefits, you can have a comfortable retirement if you engage in comprehensive retirement planning. Individual Retirement Plans (IRAs) are an easy way to start your plan while saving and … [Read more...]
