In every estate plan we prepare in our office, we include an Advance Health Care Directive (AHCD) and a form that authorizes disclosure of medical information to designated individuals you have appointed to positions in your estate plan. This latter form is done to comply with the so-called HIPAA law. An advance health care directive is a legal document you use to provide guidance about what types of treatments you may want to receive in case of a future, unknown medical emergency. It also … [Read more...]
Let’s Talk About Charitable Trusts
Typically, charitable lead trusts and charitable remainder trusts are implemented when your estate exceeds the federal estate tax exemption. This qualifies both charitable trusts as “advanced” estate planning tools. Besides lessening or totally avoiding the federal estate tax, there are income tax, capital gains tax, and charitable intent benefits as well. Simply put, the charitable lead trust provides an income stream to your favorite public charity for a period of years (up to 20) or … [Read more...]
Do You Need Life Insurance?
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...]
If You’re in a Second Marriage, It is Important to Plan to Protect Your Children
If you’re in a blended family, such as a second marriage with children from a previous relationship, you can do much to keep the peace in your family with your estate plan. One way to keep the peace, using your estate plan, is to specifically consider and plan for your children. This could include not making your children wait until your second spouse dies before they will inherit. Waiting and putting the children second may cause hurt feelings and a breakdown of relationships that you’ve … [Read more...]
Answers To Your Living Trust Questions (3 of 3)
Trusts have been around for hundreds of years; specifically, the living trust gained popularity in the 1970s as a probate avoidance technique. Today, living trusts are often used as a foundational document in estate plans. We've found that many folks have both questions and misconceptions about the living trust; so, in this three part series, we answer your living trust questions. Does everyone need a living trust? Most folks would likely benefit from having a living trust; however, if … [Read more...]
Answers To Your Living Trust Questions (1 of 3)
Trusts have been around for hundreds of years; specifically, the living trust gained popularity in the 1970s as a probate avoidance technique. Today, living trusts are often used as a foundational document in estate plans. We’ve found that many folks have both questions and misconceptions about the living trust; so, in this three part series, we answer your living trust questions. I am confused about the different types of trusts. Is a living trust always called “living trust”? Great … [Read more...]
FAQ: Charitable Planning
You may think that charitable planning has sunk into nonexistence. The extremely large (i.e. $11.18 million in 2018 an) lifetime federal estate exemption has made many question the need for charitable planning. However, charities are pleased to announce that charitable giving remains strong in the United States. What are the common ways to participate in charitable giving? Lifetime gifts Private foundations Donor advised funds Bequests Charitable remainder trusts … [Read more...]
What is a Qualified Personal Residence Trust?
If you’re like most people, you haven’t heard of qualified personal residence trusts. They are abbreviated “QPRT” for short; and, pronounced “Q – Pert.” They are irrevocable (can’t change them) split interest (you benefit and your children benefit) trusts. You benefit by living in your home rent free for a period of years. Your children benefit because federal estate taxes are eliminated and they get the house. QPRTs have a role in California planning where the high value of real estate … [Read more...]
Tips When Inheriting IRAs
We regularly get inquiries from our clients who are recipients of an inheritance. An ever increasing asset that is being inherited is a retirement account such as an IRA. Special considerations must be attended to when inheriting an IRA because of their special characteristics. In this blog, we'll discuss some of these considerations. Don’t automatically request to cash in the IRA. The income tax repercussions could be great and there are better options. If you opt for a lump sum … [Read more...]
Basics of Asset Protection – Part 2 of 4 Parts
Some form of asset protection should be included in every comprehensive estate plan. Regrettably, however, many folks foolishly opt for the cheapest estate plan they can find, whether it be a do-it-yourself plan or some form downloaded off the Internet. Others rely upon non-attorneys such as paralegals or financial advisers. Even some attorneys are guilty of poor planning work. They are usually lawyers who practice in several different areas of law, such as divorces, criminal, personal … [Read more...]
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