You may come to the realization that your individual retirement account will be passed along as part of your estate plan, and this will raise questions. We will provide answers in this post, and we will start with a general explanation of the guidelines for account holders. Traditional Individual Retirement Accounts Your taxable income is reduced by the amount of the contributions that you make into a traditional individual retirement account. This is advantageous in the near term, but … [Read more...] about Do IRA Beneficiaries Pay Taxes on the Income
BLOG
Wealthy Entrepreneur Hsieh Died Intestate
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
Medi-Cal Spouse Allowances Get Upward Adjustment
Many seniors that qualify for Medicare seek Medi-Cal eligibility late in their lives because Medicare does not pay for long-term care. The majority of elders will need help their activities of daily living eventually, so this is something everyone should take seriously. In many instances, a person will apply for Medi-Cal while their spouse is still capable of independent living. Under these circumstances, the healthy spouse (community spouse in Medi-Cal parlance) is entitled to certain … [Read more...] about Medi-Cal Spouse Allowances Get Upward Adjustment
Do You Have a Nursing Home Asset Protection Plan?
Elder law attorneys provide legal assistance to people that are concerned about the financial challenges that they may face as senior citizens. Without question, nursing home costs are at the top of this list, and you should understand the facts so you can prepare accordingly. Medicare Won’t Help The United States Department of Health and Human Services tells us that 35 percent of senior citizens will reside in nursing homes at some point in time. We are all aware of the fact that Medicare is … [Read more...] about Do You Have a Nursing Home Asset Protection Plan?
Attend to These Estate Planning Details
You should consider the finer details when you are planning your estate, but many people adopt an overly simplistic viewpoint. They reduce the matter to the creation of a will, and they leave it at that. Any estate plan is better than none at all, but this is a very profound final act of giving, and it should be given the proper attention. With this in mind, let’s look at three important estate planning details that are often overlooked. Letter of Last Instructions The written word is … [Read more...] about Attend to These Estate Planning Details
Adjustment Will Increase Estate Tax Exclusion in 2021
For the most part, inheritances are not subject to taxation. Inheritors do not have to report their bequests when they file their regular income tax returns, and appreciated assets get a step-up in basis for capital gains purposes. This means that an inheritor does not have to pay capital gains tax on appreciation that took place during the life of the decedent. There is a federal estate tax that can be applicable, but there is an exclusion that can be used to transfer a certain amount of … [Read more...] about Adjustment Will Increase Estate Tax Exclusion in 2021
An Overview of 2021 Medicare Premiums and Deductibles
At this time of year, the benefit programs for seniors announce their inflation-adjusted parameters for the following year. We have shared some information about Social Security in a previous post, and we promised a follow up with the Medicare numbers when they become available. That time is now, so we will look at the 2021 Medicare premium and deductibles here. But before we get there, we are going to start with an explanation of retirement credits. Eligibility Is Not Guaranteed Some … [Read more...] about An Overview of 2021 Medicare Premiums and Deductibles
A Time for Thanks and Community
Thanksgiving is a time for giving thanks and for appreciating your family and friends. In particular, it can be a good time to thank those people whom you’ve asked to serve in important roles in your estate plan. Thank your agents under your powers of attorney and your successor trustees. Read on to learn more. … [Read more...] about A Time for Thanks and Community
What the 2020 Election Could Mean for Your Estate Plan
The November elections are over. What was the outcome of the election? What changes could come about as a result? What do those possible changes mean for your estate plan? Read on to learn more. … [Read more...] about What the 2020 Election Could Mean for Your Estate Plan
Planning for California’s Proposition 19
Everyone had eyes on the election at the top of the ticket. But other races and state propositions may have had as much impact on people’s lives. California’s Proposition 19 is an example of this. It alters how property taxes are capped in California. Read on to learn more about Proposition 19 and the planning you could do now before Proposition 19 would go into effect in February 2021. Read on to learn more … [Read more...] about Planning for California’s Proposition 19
