Life insurance has long been part of Estate Plans, whether used to ensure liquidity for the estate on the death of the insured, or simply as income replacement on the death of the insured. Understanding the impact of life insurance on an estate plan has become critically important. A recent tax court case resulted in a big win for the taxpayer in a complex set of facts which could impact how you incorporate life insurance for your Estate Planning clients. Read on to learn more. … [Read more...] about What Estate of Marion Levine Means for Life Insurance
Estate Planning
Let’s Talk about Trusts…and Taxation
Estate planning attorneys need to understand and explain taxation of trusts in order to properly advise clients. Individual clients need to understand the implications of the plan their attorney suggests in order to properly file their own taxes. Determining whether a trust qualifies as a grantor trust or a nongrantor trust is the first step in determining tax liability for a particular year. Read on to learn more … [Read more...] about Let’s Talk about Trusts…and Taxation
Just When You Thought You Understood the 10-Year Rule, Think Again
IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly by eliminating the stretch benefit for most designated beneficiaries and forcing all designated beneficiaries other than Eligible Designated Beneficiaries to use the 10-year rule for distributions. The 10-year rule was thought to operate much like the 5-year rule that existed before the passage of the SECURE Act. Recently issued proposed Treasury Regulations dispute that … [Read more...] about Just When You Thought You Understood the 10-Year Rule, Think Again
Understanding Life Insurance
Most people include at least one life insurance policy in their estate plan. While life insurance can be a valuable estate planning tool, the key to getting the most out of your life insurance policy is knowing which type of insurance is right for you. That means you need to understand your life insurance options. Toward that end, the Los Angeles estate planning attorneys at Schomer Law Group, APC provide a basic understanding of your life insurance options. Types of Life Insurance The … [Read more...] about Understanding Life Insurance
How to Choose the Right Executor
When you contemplate your Last Will and Testament you probably focus on decisions you need to make regarding the distribution of your estate assets. There is another decision you need to make, however, within your Will that is considerably more important than you may realize – who to appoint as Executor of your estate. In fact, one of the biggest (and most common) mistakes people make in their estate plan is to appoint the wrong person as their Executor. To prevent you from making the same … [Read more...] about How to Choose the Right Executor
What Everyone Should Know about the New FDIC Regulations
Although revocable trusts are the centerpiece for many estate plans, many clients are confused by what amount of their deposit accounts are insured by the Federal Deposit Insurance Company. To make the rules easier to apply, the Federal Deposit Insurance Company released new rules with a delayed effective date. These rules build on the current concepts while simplifying their application. Read on to learn more. … [Read more...] about What Everyone Should Know about the New FDIC Regulations
State Income Taxation of Social Security Benefits
The pandemic has had a long-lasting influence on our culture, including encouraging relocation at previously unheard-of levels. Imagine the surprise of a recently relocated retiree who discovers that their previously untaxed Social Security benefits are now included in their taxable income at the state level. Taxation of these benefits could have a serious impact on their lifestyle and may provide a less beneficial financial picture than was first thought. Want to know whether your state taxes … [Read more...] about State Income Taxation of Social Security Benefits
How Estate Planning for a Family May Trap the Unwary Practitioner
Attorneys have long advised entire families with respect to their estate planning. Ethics require attorneys to maintain a duty of loyalty to each client they represent and fully advise their clients regarding the structures they are recommending. Sometimes even when the transaction works exactly as intended, lawyers get sued. Read on to learn more. … [Read more...] about How Estate Planning for a Family May Trap the Unwary Practitioner
Should I Include a QTIP Trust in My Estate Plan?
Acquiring assets may be an important goal; however, protecting the assets those assets is an equally important estate planning goal. If you divorce and remarry, for example, you may now want to preserve assets for both your new spouse and your children from the previous marriage. One way to do that is to make use of a specialized type of trust known as a Qualified Terminable Interest Property, or QTIP, trust. The Los Angeles trust attorneys at Schomer Law Group, APC explain how you might benefit … [Read more...] about Should I Include a QTIP Trust in My Estate Plan?
Estate Planning Terms Explained
Many Americans do not have an estate plan in place despite acknowledging the need for one. Often, this boils down to the fact that creating an estate plan for the first time can be intimidating. To help you feel more comfortable with the idea of creating your estate plan, the Los Angeles estate planning attorneys at Schomer Law Group, APC explain common estate planning terms. Administrator. A person named by the court to represent a probate estate when there is no Will, or the Will did not … [Read more...] about Estate Planning Terms Explained
