The federal estate tax can have a very significant impact on your legacy. It carries a 40 percent rate, and most people would say this is a very heavy dose of taxation.We are going to provide some information about the estate tax in this post, and we will highlight a change that will kick in when the new year rolls around.Estate Tax ExclusionBefore you get too worried about the 40 percent hit, it is very likely that you will not be forced to pay the tax. There is a credit or exclusion … [Read more...] about IRS Announces $11.7 Million Exclusion for 2021
Contrary to popular belief, a simple will is not the best estate planning choice for many people. There are trusts that are utilized by high net worth individuals who have certain concerns, and there are other types of trusts that are useful for people of relatively ordinary means.We are going to look at some of the reasons why people use trusts in this post, and we will then follow up with a second installment.Nursing Home Asset ProtectionIt can be hard to envision a time when you will … [Read more...] about The Benefits of Trusts (Part 1)
When laypeople hear about the fact that there are revocable trusts and irrevocable trusts, a natural question would come to mind... Why would you want to create a trust that you cannot revoke if there is an alternative? After all, circumstances could change, and you may decide that it is better to go in a different direction at some point in time.This makes sense on the surface, but there are very good reasons why an irrevocable trust can be more beneficial in some instances. In this post, … [Read more...] about Trusts Demystified
When deciding how to split your assets among your children at death, there are many different factors to consider. Equality is certainly one of those factors. But it’s not the only factor. Fair doesn’t always mean equal and vice versa.Here are some situations in which some parents might think an equal division isn’t necessarily the fairest result:One of the children has greater need due to no fault of their own.One of the children has won the lottery and has much, much more money than the … [Read more...] about Fair Isn’t Always Equal and Vice Versa
We are going to address the subject of taxation on living trust distributions in this post, but first, we should explain some of the benefits that these trusts provide.Versatility and Efficient Estate AdministrationWhen you are getting your affairs in order, you obviously have to express your wishes with regard to the way you want your assets to be transferred. At the same time, you should consider the administration process that will take place after your passing.If you use a simple … [Read more...] about Do You Pay Taxes on Living Trust Income?
Far too many people procrastinate when it comes to estate planning, and the actual percentage may surprise you. According to Caring.com, only 32 percent of adults in the United States have wills, and the percentage is just 47.9 percent for folks who are 55 years of age and older.Even though unpreparedness is widespread, most of the people who do not have plans in place say that they think it is important.Why Do They Fail to Act?The researchers asked the people who fully understood the … [Read more...] about What Happens If I Die Without an Estate Plan?
Legacy planning is a more comprehensive form of estate planning. When you carefully craft your legacy, you shape the way that you will be remembered after you are gone.Charitable GivingGenerosity is one of the most highly respected human qualities. If you are in a position to do so, you may want to consider acts of charitable giving when you are establishing your legacy plan.There are personal rewards that transcend dollars and cents, but you can potentially gain some tax advantages as a … [Read more...] about Is Charitable Giving Part of Your Legacy Plan?
President Trump and First Lady Melania Trump announced they tested positive for COVID-19. Around the same time, numerous others at the White House also tested positive. In the United States alone, the pandemic has infected over 7.5 million people and has killed nearly 215,000 of them. Worldwide, the pandemic has infected over 36.5 million people and has killed over a million of them. In today’s pandemic, it’s more important than ever to make sure your estate planning documents are current. It’s … [Read more...] about Staying Current is Especially Important in the Pandemic
As Autumn arrives, it’s not too early to consider end-of-year planning. Fundamental to end-of-year planning is deciding whether to shift income or expenses from this year to the next, to the extent possible.All other things being equal, typically you’d want to defer income (and the taxation on it) until the following year. However, if your income is lower in the current year, you may want to keep extra income in the current year to be taxed in a lower tax bracket and hence a lower marginal tax … [Read more...] about Planning Is Important
The star of multiple films, including the blockbuster superhero film “Black Panther,” died on August 28 of colon cancer. “Black Panther” by Marvel was nominated for 6 Academy Awards, including Best Picture. The film grossed over $1.3 billion worldwide. Chadwick Boseman became a role model for millions by playing Marvel Studio’s first Black superhero. Boseman also starred in films portraying real-life heroes, like Jackie Robinson (“42”), James Brown (“Get On Up”), and Thurgood Marshall … [Read more...] about Chadwick Boseman Demonstrates the Importance of Planning