Experts tell us that we are on the verge of the greatest transfer of wealth the United States has ever seen. If you are on the gifting end of those transfers you need to consider the question “Will your beneficiaries blow their inheritance?” Unfortunately, experts also estimate that at least one-third of the recipients of the coming wealth transfer will indeed do just that – blow their inheritance. What can you do to protect the inheritance you leave behind? The single most important step you … [Read more...] about Protecting Your Beneficiaries . . . From Themselves
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Do It Yourself Planning: Is It a Good Idea?
They say that you should not answer a question with another question. However, this is irresistible when you are talking about do-it-yourself estate planning. Can you just plan your own estate? Technically, anyone can try to execute estate planning documents, but the real question is this: should you try to plan your own estate? DIY Estate Planning There are Internet marketers who sell do-it-yourself legal documents, including estate planning documents like last wills and living trusts. They … [Read more...] about Do It Yourself Planning: Is It a Good Idea?
Free Report: What Is A Grantor Retained Annuity Trust?
A grantor retained annuity trust is a wealth preservation tool that can be used by high net worth people who are exposed to the federal estate tax when certain circumstances exist. Before we get into the details, we should take a look at some relevant information about the federal estate tax and the gift tax. The federal estate tax carries a 40 percent maximum rate, and this is quite a large number, especially when you consider the fact that your estate is comprised of assets that you have left … [Read more...] about Free Report: What Is A Grantor Retained Annuity Trust?
THE ABLE ACT: New Financial Planning Tool for the Disabled.
In 2014, Congress passed a new law that will change the lives of millions of people living with disabilities. Achieving a Better Life Experience, otherwise known as the ABLE Act will allow those living with disabilities to establish tax-exempt savings accounts that will not be counted against them when qualifying for government assistance, such as Medi-Cal and SSI. In the past, disabled persons were limited to no more than $2,000 in assets in order to qualify for these assistance programs, … [Read more...] about THE ABLE ACT: New Financial Planning Tool for the Disabled.
Estate Tax Strategy for Appreciable Assets
There are things that you can do to potentially transfer assets at a tax discount if your estate is going to be exposed to the federal estate tax. This tax is applicable on transfers that exceed the amount of the federal estate tax exclusion. For the rest of 2015, the exclusion is $5.43 million, but it is going up to $5.45 million in 2016 after an inflation adjustment is applied. If you are married, you can use the unlimited marital deduction to transfer unlimited assets to your spouse … [Read more...] about Estate Tax Strategy for Appreciable Assets
Use the Right Trust for the Right Job
Estate planning is often misunderstood. People who do not obtain professional guidance can assume that it is an either/or proposition. They are under the impression that a last will is the right choice for people who are not multimillionaires. The idea is that a trust is the other option, but it would only be useful for very wealthy people. In fact, this is a very shortsighted point of view. There are numerous different types of trusts. It is true that there are trusts that are used by high … [Read more...] about Use the Right Trust for the Right Job
Annual Gift Tax Exclusion Will Remain Constant in 2016
Since we are getting near the end of 2015, certain parameters that are relevant to the field of estate planning are subject to adjustments for 2016 to account for inflation. We recently passed along information about the unified federal gift and estate tax exclusion. It has been $5.43 million throughout this year, but it is going up to $5.45 million in 2016. This is not the only the exclusion that you can use to give gifts to others in a tax-free manner. There is also an annual gift tax … [Read more...] about Annual Gift Tax Exclusion Will Remain Constant in 2016
A Medi-Cal Trust Can Preserve Inheritances
When you are contemplating your legacy, you may have a certain vision with regard to the inheritances that you would like to leave behind to your loved ones. Making this vision a reality takes careful planning as you build a nest egg for your own retirement with your legacy goals in the back of your mind. Your active retirement years can be full of fun, travel, and leisure activities if you act within a well defined plan over the years. However, when you are considering the expenses that you … [Read more...] about A Medi-Cal Trust Can Preserve Inheritances
Generation X Needs To Plan
Caring for Young Children Many members of Generation X are in the midst of raising a family. As they go about the day-to-day duties of raising children, a lot of estate planning issues can be shunted aside or completely forgotten about. Yet crafting a plan that protects your children is absolutely essential. One of the most important things you can do as a Generation X parent is create an estate plan that names a guardian who will take over parenting responsibilities in the event you and … [Read more...] about Generation X Needs To Plan
What Is Nursing Home Asset Protection?
It would be logical to go through life with the understanding that your health related expenses will be covered when you are a senior citizen if you will be eligible for Medicare coverage. You qualify for Medicare through the accumulation of retirement credits. These credits are earned when you pay FICA or self-employment taxes. It takes 40 credits to earn eligibility, and you can accumulate as many as four credits in a year. This year, you earn one credit for every $1220 that you earn, so … [Read more...] about What Is Nursing Home Asset Protection?
