While you pay taxes throughout your life, a portion of what you pay goes toward future Medicare coverage. If you have paid into the program sufficiently, you become eligible for coverage at the age of 65. If you know you're going to qualify for Medicare, you may be lulled into a false sense of security. It is logical to expect Medicare to pay for nursing home or assisted living community care, but in fact, Medicare does not pay for custodial care. Medicare will pay for limited convalescent … [Read more...] about Medi-Cal Planning: What Can the Healthy Spouse Keep?
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What Is a TOD or POD Account?
People often look for so-called "simple solutions." They hear about some type of shortcut that sounds good on the surface, and they buy into the notion hook, line, and sinker. In many cases, the results are not good. With the above in mind, let's look at TOD or POD accounts. Adding a Beneficiary When you open an account at a bank, you may be offered the option of adding a beneficiary. Many brokerages also offer this option. These accounts are called transfer on death (TOD) or payable on … [Read more...] about What Is a TOD or POD Account?
What Is a Family Limited Partnership?
People often say that we live in a litigious society. Lawsuits are common, and people who like to sue others tend to seek out targets with deep pockets. As a result, certain people are particularly vulnerable to lawsuits. Landlords who own rental property sometimes fall into this category. Tenants and visitors could potentially become injured on rented property, and legal actions can be initiated. Asset protection is very important for people who own investment property. Physicians are also … [Read more...] about What Is a Family Limited Partnership?
What Is Joint Tenancy?
People sometimes look for shortcuts that seem attractive on the surface, and this enters into the realm of estate planning. Joint tenancy is one of the shortcuts that you should understand thoroughly. You may want to take pause before you buy into the notion that it is an ideal estate planning solution. Let's look at the facts. Co-Ownership of Property Joint tenancy sounds kind of complicated, but in reality, it is simply co-ownership of property. Let's say that you want your grandson … [Read more...] about What Is Joint Tenancy?
What Is an Executor?
Probate is a legal process that comes into play if you use a last will to facilitate asset transfers after you pass away. When you create a last will, you name an executor. This is the person who will handle the estate administration tasks. An executor is sometimes referred to as a personal representative. Traditionally, female executors have been referred to as executrixes. In California, the person who administers a probate proceeding where there is no will is referred to as an … [Read more...] about What Is an Executor?
What Is the Difference Between a General and a Limited Power of Attorney?
Powers of attorney are used throughout the legal field for various different reasons. There are different types of powers of attorney, and you should understand the distinctions so that you can make informed decisions. With this in mind, let's look at the difference between general and limited powers of attorney. General Power of Attorney With a power of attorney, the person who is bestowing the power is called the principal or grantor. The grantor names an agent or attorney-in-fact in the … [Read more...] about What Is the Difference Between a General and a Limited Power of Attorney?
What Is a Supplemental (Special) Needs Trust?
A supplemental needs trust, also known as a special needs trust, is a type of trust that can be used to provide resources for the benefit of a loved one with a disability who is enrolled in government benefit programs. We will look at the details in this post. Medicaid Medicaid is a jointly administered federal/state government program that provides a health care safety net for low-income people. In California, it goes by the name Medi-Cal. To qualify for Medicaid you must have very limited … [Read more...] about What Is a Supplemental (Special) Needs Trust?
Can a Living Trust Be Contested?
Many people who have not explored all the facts assume that they should use a last will to state their final wishes. You can go this route if you want to, but there are some drawbacks that go along with the utilization of a last will. A will must be probated before the heirs to the estate can receive their inheritances. This process provides certain protections, but there are a number of pitfalls that go along with it. One of the drawbacks is the fact that disgruntled parties could contest … [Read more...] about Can a Living Trust Be Contested?
Should I Use My Unified Exclusion to Give Gifts?
There are taxes on asset transfers in the United States. We have a federal estate tax, and it carries a top rate of 40 percent. Everyone does not pay the federal estate tax, because there is a reasonably large credit or exclusion. At the present time, the exact amount of the federal estate tax exclusion is $5.34 million. This figure is in place for the rest of 2014. Next year there may be a modest increase to account for inflation. In addition to the federal estate tax, there is also a federal … [Read more...] about Should I Use My Unified Exclusion to Give Gifts?
What Is the Annual Gift Tax Exclusion?
There are taxes on large asset transfers in the United States. We have a federal estate tax, but most people do not have to pay it, because there is a relatively large credit or exclusion. For the rest of the 2014 calendar year, the exact amount of the federal estate tax exclusion is $5.34 million. There are annual adjustments to account for inflation, so the figure may be higher next year. In addition to the estate tax, there is also a federal gift tax. This tax is unified with the estate … [Read more...] about What Is the Annual Gift Tax Exclusion?
