Make Your Estate Plan “Letter” Perfect
Are you creating or updating your estate plan? First and foremost, you need a will that divides up your assets among beneficiaries. Then you can complement it with other documents, such as financial and health care powers of attorney and various trusts.
What about all those other vital matters...
Estate Planning Pitfall – You Haven’t Properly Funded a Trust
A trust can form the cornerstone of your estate plan, and they come in a variety of flavors. Indeed, there’s one for nearly any estate planning situation. Here’s a short list of a trust’s potential advantages: trust assets may avoid probate, provides planning flexibility, protects assets and can minimize taxes.
Have you properly substantiated your charitable gifts?
Are you charitably inclined? If so, and you itemize deductions, you may be entitled to deduct your charitable donations. The key word here is “may” because there are certain requirements and limitations your donations must meet. One such requirement is the need to substantiate charitable gifts with proper documentation.
Managing our Residuary Estate
Even with a comprehensive estate plan, it’s likely you’ll have some assets in a residuary estate. Like the sediment at the bottom of your glass after you finish a fine wine, an estate plan may also leave some residue.
This residue takes the form of assets left over after...
How an HSA Can Benefit Your Estate Plan
A Health Savings Account (HSA) can positively affect your estate plan. How? In addition to serving as a viable option to reduce health care costs, an HSA’s funds grow on a tax-deferred basis. In fact, an HSA is similar to a traditional IRA or 401(k) plan in that it’s a tax-advantaged savings...
Financial Power of Attorney
To spring or not to spring?
A financial power of attorney (POA) can be a critical component of your estate plan. It appoints a trusted representative (often called an agent) to make financial decisions on your behalf in the event you’re unable to do so.
Without...
Estate Planning Red Flag
You’re attempting to create your estate plan with DIY tools
Interested in trying to prepare your own estate plan? There are resources available to assist you, such as online services, computer software and how-to books. Do-it-yourself (DIY) estate planning may save you a few hundred dollars, or even a...
Do your assets include unregistered securities?
This asset-class requires special planning
When it comes to estate planning, addressing all your assets is a priority. However, some assets require greater attention than others. For example, if your assets include unregistered securities, such as restricted stock or interests in hedge funds or private equity funds, you must...
Protect your estate against undue influence claims
It’s your will, so you can say whatever you want to say in it, or change any part of it, whenever you want to, right? Well, not quite. First, you’re bound to follow the prevailing laws of your state. Second, your will could be contested based on a claim that someone exercised...
Comparing inter vivos and testamentary trusts
Creating and adhering to an estate plan is no simple task. Generally, the end goal of estate planning is to divide up and transfer assets to loved ones at a minimum or zero tax cost. Of course, a will is a good starting point, but it may be supplemented by various other...