There are people that do not have estate plans because they have limited resources, and they don’t think that it is worth the trouble. If you do not have anyone depending on you financially, this may make sense on the surface, but there are other reasons to have a basic plan in place. However, if you are married, the situation is different. The responsibility you have to your family is even greater if you have a child or multiple children. You can’t create money out of thin air to make … [Read more...] about Is Life Insurance Part of Your Estate Plan?
If you receive a direct inheritance through the terms of a will, you would not be required to report it as income on your state or federal tax returns. Distributions of portions of the principal in a living trust are not taxed, but distributions of the earnings would be subject to taxation. Though income taxes are not a source of concern, there are 12 states in the union that have state-level estate taxes. Fortunately for residents of California, there is no estate tax in the Golden … [Read more...] about Is There a State Estate Tax in California?
When you are going on an adventurous journey, you try to anticipate the challenges you may face, and you prepare accordingly. The same dynamic can be applied to aging, and when you think pragmatically, you can adapt as the years pass. Aging in Place The term “aging in place” has gained a lot of traction over recent years, and it is a simple phrase that is largely self-explanatory. Most senior citizens will need some type of help with their activities of daily living, and this is simply a fact … [Read more...] about Medi-Cal Assisted Living Waiver Can Facilitate Aging in Place
The tax situation that applies to inheritances is quite favorable for the vast majority of Americans. If you receive an inheritance through the terms of a will, you are not required to report the income when you file your tax returns. This would also apply to insurance policy proceeds. Inherited appreciated assets get a step-up in basis. To explain through the use of a simple example, let’s say that your grandfather bought 1000 shares of stock for $10 a share many years ago. When he dies, he … [Read more...] about Gift Tax Exclusion Will Remain Constant in 2021
The simple will is the document that comes to mind first when most people think about estate planning. In reality, this device is really not the right choice unless the situation is very simple and straightforward. We will provide a basic explanation of simple wills here, and we will also look at the drawbacks and limitations. Purpose of a Will Everyone is aware of the fact that a will can be used to state your final wishes with regard to asset transfers after you are gone. You can also use … [Read more...] about Simple Wills 101
Effective estate planning can include asset protection for professionals and business owners, because wealth preservation is part of the equation. In this post, we will look at the family limited partnership (FLP), which can be a very effective asset protection structure. Control Without Ownership As the name would indicate, the participants in an FLP must be members of the same family. If you establish a partnership, you would be the general partner, and family members that you add would be … [Read more...] about A Family Limited Partnership Can Provide Asset Protection
There are some inheritance planning situations that can appear to be challenging on the surface, but if you speak with an attorney, you will inevitably find a solution. Providing for a minor child would fit into this category, and we will look at two potential courses of action in this post. Testamentary Trust A testamentary trust can be simply defined as a trust that is embedded within a will. If you want to provide for a minor child in your estate plan, you could include a testamentary trust … [Read more...] about How Do You Include a Minor in Your Estate Plan?
There is an expression about a little bit of information being a dangerous thing, and this often enters into the realm of estate planning. Sometimes you will hear about a so-called “simple solution” that sounds good on the surface, but an incomplete picture is painted. Joint tenancy would fall into this category, and we will take a look at the details in this post. Concurrent Ownership If you own property, you can establish a joint tenancy with another person, or multiple individuals. For … [Read more...] about Is Joint Tenancy a Good Estate Planning Solution?
The matter of long-term care is a pressing concern for members of the elder law community. Most senior citizens will need help with their activities of daily living, and more than one third of elders will require nursing home care. A lot of people are not too concerned because they know that they will qualify for Medicare when they are 65. They assume that Medicare will pay for long-term care since it is a health insurance program for seniors, and most of these folks will need living … [Read more...] about Genworth: Los Angeles Long-Term Care Costs Are on the Rise
Tony Hsieh was an interesting man who enjoyed great success at an early age. He was entrepreneurial during his days at Harvard when he started a pizza delivery service, and he cofounded LinkExchange when he was 22. This Internet advertising company exploded, and after two years of growing popularity, the partners sold LinkExchange to Microsoft for $365 million. At that point, he founded Venture Frogs, a firm that provided capital for start-ups. He got a call one day from a stranger named … [Read more...] about Wealthy Entrepreneur Hsieh Died Intestate