Who should you name as your children’s guardian?
If you’re like most parents of young children, you’ve probably put a lot of thought into raising your kids, ranging from their schools to their activities to their religious upbringing. But have you considered what would happen to them if you, and your spouse if you’re married, should unexpectedly die? Will they...
The long view of long-term care insurance
What are the chances that you or someone in your family — perhaps an elderly parent — will need long-term care assistance? According to the U.S. Department of Health and Human Services, roughly 70% of Americans aged 65 or over will require some form of long-term care.
How will...
Long-term care expenses can destroy your estate plan: Plan accordingly
Estate planning is about much more than reducing taxes; it’s about ensuring your loved ones are provided for after you’re gone and that your assets are passed on according to your wishes. However, few events can upend your estate plan as unanticipated long-term care (LTC) expenses.
LTC expenses generally...
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...
The IRS delays required minimum distributions for inherited IRAs
The IRS has for the third consecutive year offered relief to taxpayers covered by the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. Let’s look at how this may affect your retirement and estate plans.
Rules for RMDs
Once...
Planning is essential if you’re inheriting assets
If you’re in line to receive a significant inheritance, your feelings may range from exhilaration to relief, not to mention a great deal of sadness for the loved one who has passed. Indeed, a large infusion of cash or assets can be overwhelming.
Generally, when you receive an inheritance,...
A spouse’s inheritance rights vary state by state
If you’re preparing to get remarried, your estate plan likely isn’t top of mind. However, depending on the state you live in, your spouse has property rights that apply regardless of the terms of your estate plan. These rights are the same, regardless of whether it’s your first marriage or a subsequent....
Does your estate plan account for generation-skipping transfer tax?
Does your estate plan call for making gifts to your grandchildren or other loved ones more than one generation below you or nonrelatives more than 37½ years younger than you? If so, your plan must address not only gift and estate tax, but also generation-skipping transfer (GST) tax. Beware: The GST tax...
Are changes coming for the gift and estate tax exemption?
Under current estate tax law, taxpayers benefit from the most generous gift and estate tax regime in history. Indeed, in 2023, an individual can shield $12.92 million worth of assets from federal gift and estate tax.
But the good times won’t last forever, or at least they’re not designed...
Overlooking foreign assets can be detrimental to an estate plan
When working with an estate planning advisor, it’s critical to disclose all of your assets. Importantly, this includes any foreign assets. Often, people assume that these assets aren’t relevant to their “U.S.” estate plans, so they’re not worth mentioning. However, your advisor can help structure ownership of any foreign assets according to...