What is tax avoidance? It is the employment of lawful tactics to legally avoid or lower taxes. This includes various estate planning strategies, legitimate charitable deductions and charitable trusts or foundations, accelerating tax deductions, deferring income, and creating legal entities, to name a few. What is tax evasion? It is any plan to reduce taxes through illegal means. The IRS often refers to them as abusive tax shelters. There is a long history of hucksters and grifters who … [Read more...]
NEW CALIFORNIA LAW HELPS PERSONS WHO ESTABLISHED EDUCATION SAVINGS ACCOUNTS AND THEN NEED MEDI-CAL LONG TERM CARE ASSISTANCE
Parents, grandparents and other family members seeking to assist other family members (often children and grandchildren) with the high cost of college education will commonly turn to Education Savings Accounts to put away money for this purpose. These accounts are often referred to as “529 accounts”, which is a reference to the section of the Internal Revenue Code that authorizes these tax-advantaged accounts. When properly established, 529 accounts grow on a tax-deferred basis (like an … [Read more...]
13 Disturbing Estate Planning Problems
Each of these 13 disturbing estate planning facts is true; but, each situation can be avoided with a strong, individualized, comprehensive, and up-to-date estate plan. If you don’t name a guardian in your will, your minor children could end up with persons you either don't like or don't know. If you don’t provide for your pet in your estate plan, your pet may be euthanized when you die. If you put assets in joint tenancy with a second spouse, your children may be disinherited. If … [Read more...]
Tax Tips after New Year
The New Year is here. Can you do anything to reduce your tax liability for 2018? This article by my friend and colleague Steve Hartnett, an estate planning expert, provides a few tax tips now that we’ve begun another year. Read on to learn more. Tax Tips after New Year … [Read more...]
Selecting an Agent
Choosing the right Agent under a Power of Attorney is one of the most important choices. This article by my friend and colleague Steve Hartnett, an estate planning expert, discusses the qualities of an ideal Agent and qualities to avoid in selecting an Agent. Read on to learn more. Selecting an Agent … [Read more...]
Nongrantor Trusts Can Be Very Useful in Certain Situations
A trust may be taxed as either a grantor trust or a nongrantor trust. Each type of trust has advantages and disadvantages. This article by my friend and colleague Steve Hartnett, an estate planning expert, examines a nongrantor trust and situations in which it might be useful. Nongrantor Trusts Can Be Very Useful in Certain Situations … [Read more...]
Grantor Trusts Provide Flexibility and Ease
A trust may be taxed as either a grantor trust or a nongrantor trust. Each type of trust has advantages and disadvantages. This article by my friend and colleague Steve Hartnett, an estate planning expert, examines a grantor trust and situations in which it might be useful. Grantor Trusts Provide Flexibility and Ease … [Read more...]
Special Needs Planning Offers Critical Protections
If you have a loved one with special needs and you want to include him or her in your planning, you need to take advantage of special needs planning tools. Such planning allows you to leave assets for the care of your loved one, without disqualifying him from receiving vital governmental assistance. Take a look at how a special needs trust can fit in with your overall estate plan. Another alternative may be the use of what is commonly called a "pooled trust". If you have any questions, or if … [Read more...]
Differences Between a “Conservator” and a “Guardian”
The terms conservator and guardian vary in their usage from state to state. In California, they have specific and different meanings. Let's explore them. A “conservator of the person” is the individual who makes general welfare, health care, educational, and life-style decisions for an incapacitated adult. An adult may become incapacitated due to dementia, disease, or disorder. Examples of decisions would be where someone lives and what medical treatment he or she receives. In … [Read more...]
Who is Eligible for Veterans Aid and Attendance Benefits?
An important benefit available through the Department of Veterans Affairs is commonly called the Aid and Attendance pension. There are three prongs of Aid and Attendance eligibility. They are 1.) Wartime Service; 2.) Medical Need Requirements; and 3.) Financial Need Requirements. We’ll talk about each prong of eligibility below. 1.) Wartime Service You, or your spouse, must have served at least 90 days of active military duty. At least one of those days must have been during … [Read more...]
