The last will is the most common estate planning document, and a lot of people think that it is the only logical choice unless you are extremely wealthy. They are aware of the existence of trusts, but they are under the impression that trusts are very expensive to create and unnecessary for the majority of families.In reality, this is nothing more or less than a widely held misconception. There are trusts that are intended for multimillionaires that are exposed to the federal estate tax, and … [Read more...]
Will Medi-Cal Pay for In-Home Care?
Before we address the subject at hand, we must provide some necessary background information. When you are planning ahead for your retirement years, you will invariably envision the good times that lie ahead. Without question, if you make the right choices along the way with regard to saving, you will have the financial underpinning that you need to enjoy your golden years to the fullest.This is something that is fun to think about, and it should be, because people work hard all their lives … [Read more...]
Special Needs Planning and Estate Recovery
There are those that see estate planning as a one-way street. They think that it’s all about deciding “who gets what” as it were. When that is determined, everyone can receive their inheritances in the same manner, or so this line of thinking goes.You can adopt this perspective, but it would be shortsighted to say the least. To devise a well-constructed estate plan, you should definitely consider the life situation of each person that will be receiving a bequest from you. If you do not act … [Read more...]
Estate Taxes and Real Property
Financial success is a beautiful thing, and it is a good feeling to be able to leave behind a legacy for your loved ones to draw from after you are gone. This being stated, there are looming threats in the form of death taxes.Generally speaking, inheritances are not subject to regular income taxes, but there is a federal estate tax that can have a significant negative impact. This levy carries a 40% maximum rate, so we are not talking about a barely noticeable nibble. The high rate is the … [Read more...]
Medi-Cal Planning by the Numbers
The reason why Medi-Cal may be relevant to you as a senior citizen is because Medicare will not pay for a stay in a nursing home. According to the United States Department of Health and Human Services, about 35% of seniors will someday need this level of care.In the greater Los Angeles area, you can expect to pay over a hundred thousand dollars a year for a private room in a nursing home, and the costs have been rising each year. If you are married, your family must be prepared to absorb … [Read more...]
Don’t Make Assumptions About Trusts
People often harbor misconceptions about the nuances of estate planning, and this can lead to bad decisions that yield negative consequences. One of them is the idea that you would never want to use a trust unless you are extremely wealthy. Folks that are under this impression assume that a last will is the only logical choice if you are not a multimillionaire.There is a kernel of truth in this line of thinking. High net worth individuals do use trusts of various kinds to satisfy complex … [Read more...]
Benefits for Seniors: Key Facts and Figures
Our elder law attorneys assist clients that are looking ahead toward their senior years and the twilight period that will follow. When you are planning for retirement, it is important to have a thorough understanding of the benefits that you will be able to receive. In this post, we will provide some very useful information about Social Security and Medicare.Social Security Eligibility AgeThe eligibility age for a full Social Security benefit depends on the year of your birth. If you were … [Read more...]
Will My Heirs Pay an Inheritance Tax?
Taxation would logically enter your mind when you are contemplating your legacy, and most of the news is surprisingly good when it comes to taxes on inheritances. First, an inheritor does not have to report a bequest as taxable income, and appreciated assets that are inherited get a step-up in basis.What is a step-up in basis, you ask? The best way to explain is by way of a simple example. Let’s say that your grandfather bought some stock that cost him a total of $10,000, and he leaves you … [Read more...]
529 Plans: Planning for Education with a Tax and Asset Protection Bonus
Planning is important when providing for your children or grandchildren. But planning for their education has special importance and may have special advantages. This article looks at how 529 plans may have tax advantages when providing for education. Further, the article looks at how such a plan may provide asset protection in bankruptcy, as well.529 Plans: Planning for Education with a Tax and Asset Protection Bonus … [Read more...]
Planning for the Unexpected
It’s important to have a plan. If you don’t have a plan, your state law dictates who gets your property and makes decisions for you. Read on to learn more about the prevalence of unexpected deaths and an example of what can happen without planning.Planning for the Unexpected … [Read more...]
