In previous newsletters, we have discussed both so-called “529 accounts”, which are a type of tax-efficient education savings accounts and ABLE accounts, which are a relatively new type of account that can be established to provide additional resources for persons receiving Supplemental Security Income (SSI) benefits. While each account is for a different purpose, they do share some similar features. Due to a recent law change, it is now possible to make limited transfers from existing 529 … [Read more...] about Interaction between Education Savings (“529”) Accounts and ABLE Accounts
We’ve put together a collection of estate planning tips for you and your family. If you’re like most people, there will be at least one thing on this list that you haven’t thought of yet. Others will serve as a gentle reminder to take action. 1. You need to name temporary guardians so that someone is authorized to care for your children in the event you are disabled (temporarily or permanently) and unable to care for them yourself. After all, your will, appointing permanent guardians, … [Read more...] about Handy Estate Planning Tips for You and Your Family
Periodically, sit down and reevaluate your need for life insurance. It’s often an essential part of an estate plan. Life insurance can be used to: Replace income Fund a business buy – sell agreement Create an estate Pay federal estate taxes Equalize an estate Provide an inheritance for a child not in the family business General life insurance tips: Only pay premiums that won’t take food off your table. If you are insurance poor, you’ll end up dropping it. Term … [Read more...] about Do You Need Life Insurance?
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...] about NEW CALIFORNIA LAW HELPS PERSONS WHO ESTABLISHED EDUCATION SAVINGS ACCOUNTS AND THEN NEED MEDI-CAL LONG TERM CARE ASSISTANCE
One of the best parts of an estate planning attorney’s job is answering client questions. It’s an essential part of the estate planning process so we’ve outlined some of your questions below. This is part II in our three part estate planning question series. Do I have to leave my children an inheritance? No, even minor children are not legally entitled to an inheritance. Many would argue that there is a moral obligation to leave funds for the care of minor children. If you choose not … [Read more...] about Estate Planning Q and A: Part II of III
Have you considered investing in a college savings plan, such as what is commonly called a "529 plan"? If you’re like most people, you want to help contribute to your child’s education by saving for his or her many college expenses. It can be stressful committing to the best savings plan so that you’re able to reach your goals. With the right plan, you can benefit greatly while investing in your child’s future. Take a look at the information below to learn the benefits of a college savings … [Read more...] about Considering a “529” College Savings Plan?
Saving for college and saving on taxes can be accomplished thanks to Education Savings Accounts, commonly referred to as "529" plans. The number refers to the section of the Internal Revenue Code which authorizes these accounts. As we all know, it is challenging to use gifting as a tax efficiency strategy because of the existence of the federal gift tax. This levy is unified with the estate tax. While there is an exclusion of $5,43 million for the year 2015, it is just one unified exclusion … [Read more...] about How to Save for your Kids (or Grandkids) College Education
If there is one group of people that pays almost no attention to estate planning, it's college students and other young adults. When you are young, you have almost no concept of what issues you will have to worry about when you reach old age. Even if you understand them on an intellectual level, worrying about them something that doesn't even enter your mind. Unfortunately, college students and other young adults often carry a lot of debt. That debt, apart from the financial impacts it can have … [Read more...] about Students, Estates, Loans, Probate, and Life Insurance
Leaving someone an inheritance is not as simple as adding some zeros to his or her bank account balance. It can be…but this is not always in the best interests of your loved ones. It’s likely that some of your heirs are mature and established with a history of being able to handle their own affairs appropriately, and you may have no concerns about them. But you may also have some younger heirs who have not yet made their marks in life, or some family members who have personal problems or a … [Read more...] about Incentive Trusts: Using Your Legacy to Benefit Your Loved Ones