Question 1: What is the generation skipping transfer tax? The generation-skipping transfer tax is a federally imposed tax that typically applies when a grandparent gives a large amount of property to a grandchild. Commonly abbreviated as GST, the tax applies to either a gift made while the grandparent is still alive or through his or her estate. However, the grandparent’s child—the grandchild’s parent—must also be alive at the time of the gift for the tax to apply. Question 2: When is this tax … [Read more...] about 3 Questions About the Generation-Skipping Transfer Tax
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Getting a Grip on Long Term Care Insurance
The cost of long-term care, such as paying for a nursing home, continues to rise every year. It isn’t uncommon for someone to have to pay $80,000 or more for a single year in a nursing home environment. Because of this, many people choose to incorporate long-term care insurance into their estate plan as a hedge against the potential costs involved with long-term care. However, long-term care insurance is not right for everybody, and there are issues you want to consider before deciding to obtain … [Read more...] about Getting a Grip on Long Term Care Insurance
Frequently Encountered Medi-Cal Myths
Whether you are developing a Medi-Cal plan, or are curious about how Medi-Cal applies to you, you may have come across a number of myths and popular misconceptions about the program. Medi-Cal is California’s version of Medicaid, and like Medicaid programs in other states, there are specific rules and laws that apply. While these laws are very complicated and hard to understand, you shouldn’t believe some of the more popular misperceptions about the program, and you should always talk to an … [Read more...] about Frequently Encountered Medi-Cal Myths
Elder Care Can Cost Children
Studies show that by 2050 the portion of the population aged 65 and over will be more than double the current level. This is primarily due to the aging baby boomer generation who is reaching retirement age at about 10,000 individuals per day. When it comes to taking care of the elderly families, more and more people are saying that eldercare will impact their daily lives. According to the AARP, about 42 percent of workers in the United States provided unpaid eldercare to a family member or … [Read more...] about Elder Care Can Cost Children
Estate Planning for the Pregnant Woman
Whether you are new to estate planning or have already created a plan, the general rule of thumb in estate planning is that you should at least update your plan whenever a major life event occurs. One of these events is when you learn you become pregnant. Both the pregnant woman and her partner should review any estate plans they have made as soon as learning of the pregnancy. Here are two reasons why. Reason 1: You need to consider the unthinkable. Though no one likes to think about it, … [Read more...] about Estate Planning for the Pregnant Woman
When Should I Update My Estate Plan?
They say that one thing leads to another, and this is certainly true when you are engaged in the process of estate planning. Indeed, the word “process” is something to absorb because being optimally prepared at all times is an ongoing endeavor. With this in mind, let’s take a look at the top three reasons to update your estate plan. Marriage, Divorce & Remarriage An update to your estate plan is going to be a natural accompaniment to any change in marital status. In fact, you may … [Read more...] about When Should I Update My Estate Plan?
Death and Debts – 3 Questions
Question 1: Who is responsible for paying the deceased relatives debts? In general, only a person who agreed to take on the debt is responsible for paying it back. For example, if your father dies and leaves behind $10,000 in credit card debts, you are not responsible for paying those back. The only situation in which you might have to pay them back is if you were a joint account holder on those same credit cards. In this situation you are obligated to pay the debts. Also, if you are the … [Read more...] about Death and Debts – 3 Questions
A Charitable Trust – Not Just For The Wealthy
For many people, the chance to use your wealth to support a worthy cause or charity is one of the great joys of developing an estate plan. While you can choose to give gifts now or donate them through your estate, you may want to consider establishing a charitable trust. Charitable trusts give you a wide range of options when choosing how to leave your gift, and they are not only for the wealthy. If you haven't thought about a charitable trust before, here are several issues you may want to … [Read more...] about A Charitable Trust – Not Just For The Wealthy
Practical Steps Checklist for your Financial Power of Attorney
Step 1: Review it. Before ever trying to use your power of attorney you should always have an experienced and qualified estate planning lawyer review it. This is especially important if such a lawyer lawyer didn't make it for you. No third party will honor a financial power of attorney if it doesn't comply with state laws because they risk being held responsible if they do. Many boilerplate powers of attorney found in stores, on CDs or on the Internet are incomplete and defective and may not … [Read more...] about Practical Steps Checklist for your Financial Power of Attorney
California Advance Health Care Directive – 5 Important Elements
Element 1: Health care power of attorney. A California Advance Health Care Directive (AHCD), which is the California version of a document also known as a health care power of attorney, will let you choose someone who can be responsible for making medical decisions on your behalf should you ever become unconscious or otherwise incapacitated. While you can choose whomever you wish, that person should always be a capable adult who can be easily reached by your health care providers in case of an … [Read more...] about California Advance Health Care Directive – 5 Important Elements
