People often harbor misconceptions about trusts. The first one is the idea that they are only useful for very wealthy individuals. This is true, but you have to take out the word “only.” There are a number of different trusts that can be utilized, and they serve varying purposes. Generally speaking, they are broken down into two broad categories: revocable and irrevocable trusts. Let’s look at the differences and why someone may want to use either type of trust. Irrevocable Trusts As the … [Read more...] about Why Would You Use an Irrevocable Trust?
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Why Do People Avoid Probate?
When a will is used to as a postmortem asset transfer vehicle, the executor that is named in the document would act as the administrator. This individual or entity cannot act in a vacuum. The will would be admitted to probate, and the court would provide supervision during this legal process. In California, there is are a couple of caveats to the above statement. Smaller estates that are valued at $166,250 or less can be administered through the utilization of a small estate affidavit or a … [Read more...] about Why Do People Avoid Probate?
Uncompensated Transfers
Medicaid is a state-federal partnership that provides medical benefit assistance to people who qualify, especially those over 65 years of age. However, in order to qualify, you also need to meet certain financial requirements such as asset limits. However, if you have made “uncompensated transfers,” that could lead to a period of disqualification from the program. Read on to learn more. Uncompensated Transfers … [Read more...] about Uncompensated Transfers
Low-Interest Loans: An Estate Planning Technique
The coronavirus has caused upheaval in society and the economy. But, this unique time also opens up opportunities in estate planning. Read on to learn more. Low-Interest Loans: An Estate Planning Technique … [Read more...] about Low-Interest Loans: An Estate Planning Technique
Do You Qualify for the Veterans Special Pension?
People that serve in the military make huge sacrifices for our country, but they do have access to some benefits that are very useful. Most people are aware of the fact that there is a veterans retirement pension that is earned after at least 20 years of service. This provides some great opportunities for veterans. The amount of the pension goes up depending on the length of service time. An individual could choose to spend their entire career in the military and earn a maximum pension as a … [Read more...] about Do You Qualify for the Veterans Special Pension?
Keep Inheritances Safe With a Living Trust
There is no single universal approach to estate planning that is right for everyone. Since there are so many different strategies that can be implemented, you should really discuss your unique personal situation with a licensed estate planning lawyer. If you make the right choices from the outset, you can go forward with the knowledge that you are going to provide for all of your family members in the optimal manner. With this in mind, we will look at one of the major benefits that you would … [Read more...] about Keep Inheritances Safe With a Living Trust
Election Could Bring Estate Tax Changes
We are in an election year, and the two major parties see things differently when it comes to taxation. There’s been a lot of talk about taxing the very wealthy, and one way to do this would be to alter the parameters of the federal estate tax. Let’s look at the details. Estate Tax Exclusion The key factor is the federal estate tax exclusion. This is the amount that can be transferred before the estate tax kicks in. When a new tax package was passed for the 2018 calendar year, the estate tax … [Read more...] about Election Could Bring Estate Tax Changes
Will You Need Long-Term Care?
When you are looking ahead toward your retirement years, you probably have some big plans on the agenda. You can travel to those places that you have always wanted to visit, enjoy your favorite leisure activities, and spend quality time with your family and friends. If you have taken the right steps along the way to prepare yourself financially, this part of your life can be very enjoyable. At the same time, from a planning perspective, it is wise to consider the eventualities that you may … [Read more...] about Will You Need Long-Term Care?
CARES Act Impacts IRA RMDs
As estate planning attorneys, we are often asked about how individual retirement accounts can be used for estate planning purposes. There has been some important recent news about the rules surrounding these accounts, and we will share it here. But first, we will provide some necessary background information. Traditional Individual Retirement Accounts With a traditional IRA, the deposits that are made into the account are pre-tax contributions. In the near term, this is a tax benefit, because … [Read more...] about CARES Act Impacts IRA RMDs
Anticipate Possible Estate Challenges
Planning your estate can seem like an exercise in stating your wishes in writing through the utilization of a will or a trust. You simply determine what you have to pass along, and you decide on the way that your resources will be distributed to your loved ones. This is certainly the basic idea, but there are some nuances to take into consideration. One of them is the potential for an estate challenge, we will look at some of the details in this post. Last Will Contests When will is used as … [Read more...] about Anticipate Possible Estate Challenges
