Estate planning is often regarded as a dry, legal process that revolves around assets, wills, and trusts. However, at its core, it's about the deeply personal decisions regarding the welfare of loved ones after your passing. Consequently, it often triggers strong emotions, which can make the process more complex. Here's how to navigate the emotional side of estate planning. 1. Acknowledging the Emotional Weight: The very nature of estate planning forces us to confront mortality and the … [Read more...] about Navigating the Emotional Side of Estate Planning
The SECURE Act – the Gift That Keeps On Giving
The SECURE Act of 2019 altered the landscape for IRAs significantly when signed into law. Just when advisors gained a level of comfort with the SECURE Act, the United States Treasury Department issued Regulations in early 2022 requiring RMDs under the 10-year Rule in years 1-9. After realizing that many individuals were unaware of that requirement, the Internal Revenue Service responded by issuing Notice 2022-53 suspending the requirement to take RMDS in 2021 and 2022. SECURE 2.0 came at the end … [Read more...] about The SECURE Act – the Gift That Keeps On Giving
Understanding the Importance of the Simultaneous Death Act
Most spouses create Estate Plans that are intertwined. The plans work well on numerous levels allowing the spouses to benefit the surviving spouse and then distributing their joint assets to their children upon the death of the survivor. Even in a second marriage situation, it’s possible for the first spouse to die to create a trust benefitting the surviving spouse for life, but then going to children from a prior relationship upon the surviving spouse’s death. What happens when two spouses die … [Read more...] about Understanding the Importance of the Simultaneous Death Act
IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis
The IRS released Revenue Ruling 2023-2 explaining that assets in a trust which is not included in the estate of the decedent don’t receive a “step-up” in income tax basis. This is the case even if the trust is taxed to the grantor for income tax purposes. This confirms the plain language of the statute and what we’ve long known. My friend and colleague Steve Harnett, an estate planning expert, discusses this imporatant topic. Read more to learn more about this Ruling and how to qualify for one … [Read more...] about IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis
National Make-a-Will Month
Although many Estate Plans have a Revocable Trust as the foundation for the plan, Wills can a play an role in a comprehensive Estate Plan. Alarmingly, most Americans don’t have a Will even though they know it’s important. As National Make-a-Will month comes to a close, let’s explore the often overlooked and neglected Estate Planning document, the Will. My friend and colleague Tereina Stidd, an estate planning expert, has some thoughts on the subject. Read on to learn more. … [Read more...] about National Make-a-Will Month
Why a Durable Power of Attorney Matters
Estate planning is not just about determining how your assets will be distributed after your death. It's also about making decisions for scenarios where you might be alive but unable to make choices for yourself. This is where a Durable Power of Attorney (DPOA) comes into play. Here's a look at why this document is so vital in the estate planning process. 1. Definition and Purpose: A Durable Power of Attorney is a legal document that allows you to appoint someone, often referred to as your … [Read more...] about Why a Durable Power of Attorney Matters
Lessons from Celebrity Estate Planning Mistakes
Celebrity estate planning mistakes have made headlines over the years, serving as cautionary tales for the rest of us. These high-profile errors offer valuable lessons on what to avoid in our estate planning. Here's an overview of some common mistakes and the insights we can glean from them. 1. Dying Without a Will: Several celebrities, including Prince and Aretha Franklin, died without having a will in place. This led to lengthy legal battles, family disputes, and the distribution of … [Read more...] about Lessons from Celebrity Estate Planning Mistakes
Cryptocurrency and Your Estate Plan
The surge in popularity and value of cryptocurrencies like Bitcoin, Ethereum, and countless others has ushered in a new dimension to estate planning. Digital assets, by their nature, come with unique challenges not typical of traditional assets. Here's a breakdown of what you need to consider when incorporating cryptocurrency into your estate plan. 1. Inventory Your Assets: Begin by cataloging all your digital assets. This includes not only the cryptocurrencies themselves but also any … [Read more...] about Cryptocurrency and Your Estate Plan
What to Consider When Setting Up a Trust for a Child with Special Needs
When you're the parent or guardian of a child with special needs, planning for their long-term well-being, especially after you're gone, can be a primary concern. A Special Needs Trust (SNT) is a crucial tool in ensuring that your child remains financially stable and retains access to necessary services and benefits. Here's what to consider when setting one up: 1. Purpose of the Trust: An SNT is specifically designed to provide financial support to a beneficiary with disabilities without … [Read more...] about What to Consider When Setting Up a Trust for a Child with Special Needs
Estate Planning for Non-U.S. Citizens Residing in the U.S.
Estate planning for non-U.S. citizens residing in the United States presents a unique set of challenges and considerations. The rules governing estate and gift taxes can differ significantly for non-citizens, even if they reside in the U.S. Therefore, understanding and navigating these complexities is crucial for optimal estate planning. Here are some key points to consider: 1. Determining Residency for Tax Purposes: For estate and gift tax purposes, the IRS does not equate "residency" … [Read more...] about Estate Planning for Non-U.S. Citizens Residing in the U.S.
