The most significant action of Congress in 2019 relating to retirement and estate planning was the late December passage of the “Setting Every Community Up for Retirement Enhancement Act of 2019”, commonly known as the “Secure Act”. It was signed into law shortly thereafter and is effective January 1, 2020, for most purposes. In this and future newsletters, we will look into the provisions of the Secure Act and also some strategies to maximize benefits and minimize problems created by this … [Read more...]
Your Estate Plan: Get It Into a Writing or Else
Your estate plan must be in writing to be legally valid; conversations with your spouse or other family members are not enough. Without written directions and authorization, family discord and upset may result and your wishes may not be followed. Don’t Want to be Hooked to Life Support Machines, Put it in Writing in an Advance Health Care Directive For example, Terri Schiavo, the Florida woman kept on life support for 15 years, had reportedly told her husband that she didn’t want to be … [Read more...]
Estate Planning: Essential for Small Business Owners
If you own a small business, make sure you include your interest in the business in your estate plan. Even if you plan to leave all your interest in the business to a family member, failing to structure the transfer of your interest in the business in the right way could subject the value of the interest to estate or gift taxes. With proper planning, you may be able to minimize or eliminate estate or gift taxes by using one of the numerous business succession options. Sale of Your Business: … [Read more...]
Ins and Outs of Inheriting an IRA
What are the tax implications of an inheriting an IRA? The answer depends on several factors: Is it a traditional IRA or a Roth IRA? The funds in a traditional IRA have never been taxed and will be taxed as they are withdrawn. Roth IRAs contain post-tax dollars and are not again taxed upon their withdrawal. Is the beneficiary of the IRA a spouse, a non-spouse person, or a charity? When the beneficiary of an IRA is the spouse of the IRA owner, the spouse will have a number of … [Read more...]
Is an Inherited IRA Taxable to the Beneficiary?
The popularity of self-funded retirement accounts, such as a 401(k) or an individual retirement account (IRA), has increased dramatically over the last several decades as more and more companies do away with employer-sponsored retirement and pension plans. Given how common it now is for an IRA to be part of a retirement plan, inheriting an IRA has also become fairly common. If you recently learned that you are the beneficiary of an IRA, or you are contemplating the wisdom of including an IRA in … [Read more...]
Probate Avoidance Made Easy (part 2 of 2)
Probate can be an extremely costly, lengthy, and public process. Many people take the time to carefully plan their estate in order to avoid probate. If you’re looking to avoid probate, you will need to utilize the right techniques. Take a look at some more great ways to avoid probate. If you have any questions or if you’re ready to discuss your probate avoidance needs, meet with an experienced, qualified estate planning attorney. Gift during your lifetime. If you’re able and willing … [Read more...]
What You Need to Know about Social Security Retirement Benefits
You have probably listened to well-meaning family members tell you that it is never too early to start planning for your retirement. It is also never too early to start learning more about your Social Security retirement benefits. Doing so ensures that you have a good idea what your benefit amount will be and helps you decide when to start collecting those benefits. The Sacramento elder law lawyers at Northern California Center for Estate Planning & Elder Law explain some basics about Social … [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...]
The importance of reviewing your IRA Beneficiary Designations
Whether you realize it or not, you have a beneficiary designation on your IRAs (i.e. individual retirement accounts.) It would be prudent for you to check the beneficiary designations to ensure that they are in line with your current intent, goals, and estate planning documents. Stretch out goals IRAs make great inheritances for children and grandchildren who, with proper planning, can stretch the IRA distributions out over their life expectancy. The tax deferred growth is amazing and … [Read more...]
Retirement Planning: The Roth IRA
A Roth IRA is an individual retirement account; it’s called “Roth” because that’s the name of the Congressman who introduced the legislation, creating this type of retirement account. Retirement accounts have tax advantages to create an incentive for you to plan for your retirement and not depend upon public assistance in the future. Though you need to consult with professional advisors and get good advice, customized to your individual situation, the Roth is an incredible retirement planning … [Read more...]
