The ongoing global pandemic provides us with a great opportunity to re-evaluate our goals. At the outset of the pandemic, we were forced to make drastic changes to our everyday lives. Even now, countless health care workers continue to endure long hours in overrun hospitals with insufficient supplies struggling to save lives in the face of growing admissions. Across the country and around the planet, people have looked for ways to help. Many have done that by providing food, school supplies, and … [Read more...] about Charitable Planning in Times of Crisis
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How Using Specific Bequests Could Cost Beneficiaries their Inheritance
Sometimes even the best-laid plans do not work out. Most everyone has certain goals in mind for their estate plan, including detailed disposition of their assets upon death. Often, these goals reflect long-standing plans to reward a beneficiary for their devotion to the business or even to follow through on a promise to gift a particular asset to a beneficiary. The ideas may seem straightforward; however, these simple bequests can prove difficult, if not impossible, to implement if the assets no … [Read more...] about How Using Specific Bequests Could Cost Beneficiaries their Inheritance
Estate Planning Reduces Stress During High Anxiety Times
Everyone who lived through September 11, 2001, shares a common experience. Although colored by our individual circumstances, we remember looking at the horrific images of destruction and misery and wondering why this tragedy occurred. Since that fateful day, Americans have flocked to churches, synagogues, mosques, and other places of worship seeking answers to questions regarding the meaning of life and the existence of suffering.This national tragedy continues to affect all of us to … [Read more...] about Estate Planning Reduces Stress During High Anxiety Times
Dangers of Do-It-Yourself Estate Planning
Occasionally, those who aren’t Estate Planning attorneys will attempt to do their own Estate Planning. They think they can find a document online or use a friend’s document and can figure it out. Unfortunately, there are many pitfalls one could run across.Let’s look at three of these pitfalls which one must sidestep.Bill and Mary had a house worth $500,000, an IRA worth $500,000, and investments of $500,000. They have three children, Aaron, Betty, and Charlie. At the death of the … [Read more...] about Dangers of Do-It-Yourself Estate Planning
How to Dispose of “Stuff”
Even wealthy families are often most concerned about the possessions which they have around them. They may have financial accounts with lots of zeros, yet they are most concerned about the things which they have collected or been given over the years. At first glance, this may not make much sense because the items may not be of great financial value. But folks may have developed great emotional attachment to these items. In fact, there is a psychology of stuff and the attachment people have to … [Read more...] about How to Dispose of “Stuff”
Biden Administration Could Reduce Estate Tax Exclusion
The estate tax exclusion is the amount you can give without facing an estate tax. Under current law, you may give this amount during life or at your death and after that amount is used, you face a federal tax of 40% on assets beyond that amount. The amount has fluctuated a great deal over the years. It was $675,000 as recently as 2001. In 2021, the exclusion is a whopping $11.7 million per person. This exclusion consists of a “permanent” exclusion of $5 million, adjusted for inflation since a … [Read more...] about Biden Administration Could Reduce Estate Tax Exclusion
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
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?
Preparing for the Unexpected…and the Eventual
All of us face difficulties and tragedies in our lives. Some of these difficulties are expected and some are unexpected. 2020 has been a year of many unexpected difficulties. While all of us get sick from time to time, nobody anticipated the COVID-19 pandemic. Over 9 million Americans have caught the disease, resulting in the deaths of over 230,000 Americans.Apart from coronavirus, there are many unexpected tragedies, such as 795,000 Americans suffering a stroke each year, according to … [Read more...] about Preparing for the Unexpected…and the Eventual
