An estate plan considers not just to whom assets should go, but also how. Each beneficiary is unique, and the estate plan should consider their unique situation. This article looks at a couple with three very different children and how they might leave the assets for them in three very different ways.Often, when people think of “estate planning” they think it’s only about deciding who gets the assets. However, how they get the assets may be even more important.The default under state … [Read more...] about 6 Important Estate Planning Considerations – Part 3: Your Kids
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Estate Planning: The Simplest Plan is Usually Not the Best
Estate planning contemplates two different general time periods: During life and after your death. Estate planning needs also vary based on the goals you are trying to achieve. For example, after death, do you simply wish to transmit your assets, or do you wish to provide your loved ones with asset protection, tax protection, divorce protection, or other benefits?During both time periods, you could have a very simple estate plan: Do nothing. Let’s see how the simplest plan works.If you … [Read more...] about Estate Planning: The Simplest Plan is Usually Not the Best
Age-Related Retirement Milestones
There are many milestones in retirement. Financial advisers might advise that you achieve certain financial benchmarks by specific ages or stages in your life. They might advise that you have a certain multiple of your salary by specific ages. Or, they might advise having a nest egg of a particular size before you retire. Here’s a retirement calculator that might help you determine your progress as you plan for retirement.But, there are certain age-related milestones you need to remember as … [Read more...] about Age-Related Retirement Milestones
Estate Planning: Simple is not Always Better
Estate planning contemplates two different general time periods: During life and after your death. Estate planning needs also vary based on the goals you are trying to achieve. For example, after death, do you simply wish to transmit your assets, or do you wish to provide your loved ones with asset protection, tax protection, divorce protection, or other benefits?In this blog, we’ll look at a plan which is very simple, but which does not include a trust.A simple, common plan without a … [Read more...] about Estate Planning: Simple is not Always Better
How Are You Planning for Long-Term Care (LTC) Expenses?
The odds are nearly even that you’ll need long-term care (LTC) after age 65, at least for a while. But, many people haven’t planned for that possibility in their retirement plan. LTC care costs about $86,000 per year nationally, according to a Genworth study. But, the costs vary dramatically from the least expensive state (Texas, about $55,000) to the most expensive state (Connecticut, about $150,000). Nearly one-half of those who need care need it for less than one year. However, a significant … [Read more...] about How Are You Planning for Long-Term Care (LTC) Expenses?
Treasury Releases New Inflation Adjustment
Estate planning attorneys and others in the wealth management community have known since mid-December that the amount clients can pass without taxation is now, temporarily, doubled. The new tax law doubled the exclusion until the end of 2025. On January 1, 2026, the exclusion reverts to $5 million (adjusted for inflation from 2011). Each year we get inflation adjustment figures from the Department of the Treasury in the form of a Revenue Procedure.The exclusion amount for 2018 was set to be … [Read more...] about Treasury Releases New Inflation Adjustment
Basis is Important in Estate Planning
When considering different estate planning strategies and which direction to take, it’s important to consider the impact on basis. “Basis” is the benchmark used for income taxation.This article examines the nature of basis and follows an example from acquisition of property to death and looks how basis is adjusted along the way. Since the property is included at death, the basis receives a step-up to the value of the property at death.What does income tax basis have to do with estate … [Read more...] about Basis is Important in Estate Planning
A Special Option for Special Kids
When planning for children with special needs, it takes special care to preserve their eligibility for public benefits. An ABLE account is a new way to preserve eligibility while gaining tax advantages. Read on to learn more about this new tool in planning for those who were disabled by age 26.Planning for beneficiaries with special needs requires unique attention. Public benefits can be an essential way to provide for the specialized care these beneficiaries require to allow them to lead … [Read more...] about A Special Option for Special Kids
