The acronym QTIP may conjure certain images outside of an estate planning context. For our purposes as estate planning attorneys, the acronym stands for a qualified terminable interest property trust. This type of trust can be useful if you are a parent who is getting remarried. Protecting Your Children If you are getting remarried as a parent, you may have estate planning concerns. Clearly, you want to make sure that you provide resources for your new spouse to draw from after you are gone if … [Read more...] about What Is a QTIP Trust?
Advanced Estate Planning
Basics of Asset Protection – Part 2 of 4 Parts
Some form of asset protection should be included in every comprehensive estate plan. Regrettably, however, many folks foolishly opt for the cheapest estate plan they can find, whether it be a do-it-yourself plan or some form downloaded off the Internet. Others rely upon non-attorneys such as paralegals or financial advisers. Even some attorneys are guilty of poor planning work. They are usually lawyers who practice in several different areas of law, such as divorces, criminal, personal … [Read more...] about Basics of Asset Protection – Part 2 of 4 Parts
Basics of Asset Protection – Part 1 of 4 Parts
The term asset protection is heard a lot in planning circles. However, it has no definitive definition and its role depends on the context in which it is used. One aspect of asset protection is to protect the owner of those assets. Sometimes it refers to protecting those assets from possible seizure after a finding of liability, e.g., in a lawsuit. Other times it refers to legally minimizing or avoiding (not evading) certain tax liabilities such as the estate and gift taxes. Still other … [Read more...] about Basics of Asset Protection – Part 1 of 4 Parts
Marriage in the Golden Years
As we live longer, a marriage later in life is becoming more common with our aging society. That means changes to your estate plan are more crucial than ever. It also means the likelihood of new family members, from adult children to grandchildren and sometimes even great grandchildren. Social Security Benefits There are a number of dynamics that potentially play out when it comes to your social security benefits. Even if you’ve carefully prepared, you now have to consider more than just … [Read more...] about Marriage in the Golden Years
Medi-Cal Long Term Care Primer – Part 2 of 4
In this blog, we will address how eligibility for Medi-Cal long term care (LTC) benefits is established. Eligibility is essentially an asset test. For eligibility purposes, assets fall within one of three categories: countable (non-exempt), not countable (exempt) and unavailable (countable, but not counted). To be eligible for Medi-Cal LTC, an individual applicant's countable assets must be below $2,000. If the applicant is married, in 2015, the spouse can have another $119,220 of countable … [Read more...] about Medi-Cal Long Term Care Primer – Part 2 of 4
How to Protect IRAs Left to Your Beneficiairies
A recent U.S. Supreme Court decision, Clark v. Rameker, will have big implications for clients. In the Clark case, the Supreme Court held that, while a person’s own IRA can be protected in the case of bankruptcy, the court has determined that an inherited IRA cannot, at least when it is inherited by someone other than a spouse. While that is big news for those who have already inherited an IRA, it is a call to action for those planning to leave one behind. Being aware of the consequences of … [Read more...] about How to Protect IRAs Left to Your Beneficiairies
IRS Announces 2015 Estate and Gift Tax Exemptions
The IRS has announced the annual inflation adjustments for 2015. The unified federal gift and estate tax exemption, including the amount an individual leaves to his or her beneficiaries at death and the amount of reportable gifts during life, will be $5.43 million in 2015. This amount has increased from $5.34 million, the federal estate tax exemption in 2014. This means that a decedent in 2015 will be able to pass $5.43 million tax free, cumulative of gifts which exceed the annual federal gift … [Read more...] about IRS Announces 2015 Estate and Gift Tax Exemptions
Simple Estate Litigation Prevention Measures
Estate litigation is something every estate plan should try to prevent whenever possible. Litigation can deplete your estate of money, lead to unnecessary delays in transferring inheritances, and involve disagreements that destroy relationships between family members. An estate plan that keeps the possibility of estate litigation in mind, and one that does everything it can to reduce the risk of such conflicts from arising, is something you should consider on as you go through the planning … [Read more...] about Simple Estate Litigation Prevention Measures
Update on 2013 Estate Tax Law Changes
A key part of the American Taxpayer Relief Act of 2012 (ATRA), the new tax law passed by Congress on January 1st, that was not yet known immediately after the passage of the new law has been released by the Internal Revenue Service. The exact amount of the estate tax exclusion for 2013 has been set at $5.25 million. To understand where this figure comes from you have to go back to the end of 2010 when the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 was … [Read more...] about Update on 2013 Estate Tax Law Changes
Common Questions About Business Transition Planning
Question 1: What is business transition planning? For the business owner, determining what is the proper time to step away from your business and hand the reins over to someone else is a complicated one to make. A business transition plan will allow you to smoothly transfer authority to the new manager or owner once you have decided to leave. Question 2: How do you determine when to step away? There’s no simple answer to this question. Your business role is an indelible part of who you are. … [Read more...] about Common Questions About Business Transition Planning
