What’s the right direction for you in planning for the help you might need in the future? Seven in ten of us will need long-term care at some point in our lives. Here are possible paths for covering the assistance you may need. How Will You Obtain the Care You Need? … [Read more...] about How Will You Obtain the Care You Need?
Estate Planning
Use Trust Protectors for Added Protection and Flexibility
Trust Protectors are increasingly popular in trusts. This article examines how Trust Protectors can add flexibility to your trust. This flexibility helps achieve your goals and can protect the beneficiaries and Trustee. Use Trust Protectors for Added Protection and Flexibility … [Read more...] about Use Trust Protectors for Added Protection and Flexibility
Income Tax Basis
Income tax basis is important in tax and estate planning. This article examines the concept of income tax basis, how one acquires a basis, how it gets adjusted, etc. The article then examines how the basis is subtracted from the sale price to determine gain or loss. The next article in the series will examine how income tax basis is an important factor in estate planning. Income Tax Basis … [Read more...] about Income Tax Basis
Why Choose a Living Trust Over a Last Will?
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...] about Why Choose a Living Trust Over a Last Will?
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...] about Estate Taxes and Real Property
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...] about Don’t Make Assumptions About Trusts
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...] about Will My Heirs Pay an Inheritance Tax?
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...] about 529 Plans: Planning for Education with a Tax and Asset Protection Bonus
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...] about Planning for the Unexpected
Planning for Education Expenses
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 a trust can be used to provide for your child or grandchild’s education. The article looks at how a trust can protect those funds. Planning for Education Expenses … [Read more...] about Planning for Education Expenses
