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
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.My friend and colleague, Tereina Stidd, an estate planning expert, has written on this issue. Read on to … [Read more...] about Let’s Talk about Trusts…and Taxation
What Estate of Marion Levine Means for Life Insurance
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. My friend and colleague, Tereina Stidd, … [Read more...] about What Estate of Marion Levine Means for Life Insurance
Is It Too Late for Medi-Cal Planning?
Accepting the reality that you (or a loved one) need the type of care that can only be found in a long-term care facility is difficult enough. Facing that reality along with the realization that you cannot afford the care can be devastating. This is particularly true if you also failed to plan ahead to ensure that you would qualify for Medicaid if you need help covering the cost of LTC. Why Is Qualifying for Medi-Cal So Important? Like most seniors, you will probably rely on Medicare to … [Read more...] about Is It Too Late for Medi-Cal Planning?
Application of the Transfer for Value Rule to the Sale of Life Insurance
Even individuals with modest estates purchase life insurance which means that Estate Planning attorneys must understand the rules regarding taxation of life insurance. Retention of certain powers or certain transactions could cause negative income, gift, or estate tax consequences. My friend and colleague, Tereina Stidd, an estate planning expert, has a nice piece on these powers. Read on to learn more. … [Read more...] about Application of the Transfer for Value Rule to the Sale of Life Insurance
Estate Planning – Something You Shouldn’t Do Yourself
It’s tempting to think that by taking the time to hand-write your Will or preparing a do-it-yourself plan, you can avoid many of the issues that arise with a Will. In fact, the opposite may be true. By handwriting your Will or preparing a do-it-yourself plan, you may be creating more issues for your family. My friend and colleague, Tereina Stidd, an estate planning expert, has shared her thoughts. Read on to learn more. … [Read more...] about Estate Planning – Something You Shouldn’t Do Yourself
Family Estate Planning Should Include the Family Business
If you own your own company, you know that running a business is a complicated venture that takes loads of planning time. Besides planning to grow and expand your business, you must also determine what will happen after your death. No Business Estate Plan If you don’t include your business in your estate plan, then it may not survive your death. If you have full or partial stake in a business, it will be considered a part of your estate upon your death. If you have not named someone to … [Read more...] about Family Estate Planning Should Include the Family Business
How To Manage Long Term Care Costs
Placing a loved one in a nursing home is difficult enough without having to worry about the tremendous expense involved with it. Oftentimes, these costs are significant enough to deplete most, if not all, of the assets of the individual. When a nursing home is the only option, the extra expense has to be met somehow. So what can you do to keep these expense down? It is tempting to allow the nursing home staff to attend to your loved one’s every needs. But this is the same as employing a … [Read more...] about How To Manage Long Term Care Costs
Planning Should Include Your Pets
When it comes to protecting your beloved pets, no one does it better than you. You love them... You feed them... You make sure they have everything they need to live a happy, healthy life. But what would happen if you were no longer around? Who would care for your pet? Would your friends and family know what foods to feed or what medications to give? How can you ensure that your pet continues to receive the love and care they need? What a Pet Trust Can Do A Pet Trust is a powerful … [Read more...] about Planning Should Include Your Pets
Shaping An Enduring Legacy
Making sure that your loved ones are provided for to your satisfaction is probably going to be your first objective when you are planning your estate. However, many people are in a position to craft a lasting legacy. This is something that can be very satisfying personally while being simultaneously beneficial to the community around you. How you would like your influence to be felt is a personal matter but we see many examples out there. The creation of a charitable foundation may be a … [Read more...] about Shaping An Enduring Legacy
