If you are like most people, you may not be familiar with the different types of trusts available in estate planning. The basic difference between testamentary and living trusts is when they become effective. A testamentary trust is a special type of trust that does not become effective until after your death. On the other hand, a living trust goes into effect when you create it and remains in effect during your lifetime. If you need help deciding which type of trust will best suit your estate … [Read more...] about Kansas City Trust Attorneys Explain the Difference Between Testamentary and Living Trusts
New Tax Proposals
There are two new tax proposals being floated. One is an income tax proposal and the other is a wealth tax proposal.Income TaxRepresentative Alexandria Ocasio-Cortez (D-NY), one of the new class of legislators in the House of Representatives has suggested the rate of income taxation for high-earners be raised. She is suggesting a top rate for those making over $10 million per year be increased to 60% or 70%. She’s suggesting the proceeds could be used for a “Green New Deal” or other … [Read more...] about New Tax Proposals
Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
TOD (Transfer on Death) designations, POD (Pay on Death) designations, and beneficiary designations can be useful in the right circumstances. Each of these tools allows for an automatic transfer to the named beneficiary at the death of the owner. But these tools can have a few shortfalls. First, if the named person predeceases the owner, typically it will not be effective to transfer the assets. Sometimes, you could name a contingent beneficiary and then it would go to that person. But, if there … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
Living Trust Benefits You Should be Sure to Consider
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...] about Living Trust Benefits You Should be Sure to Consider
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...] about Can You Transfer a Mortgaged Home to a Living Trust?
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...] about Will the Agent of My Power of Attorney Become My Executor?
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...] about When Should Kansas City Residents Access Their IRAs?
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...] about If I Complete a Durable Power of Attorney, Do I Still Need a Will?
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...] about Turning the Page on 2018 and Looking Forward to 2019
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...] about Naming a Trust as Beneficiary of an IRA
