Many people are surprised to hear that taxation is usually not much of a problem when an estate is being distributed to the heirs. There are no income taxes on inheritances, and if you inherit appreciated assets, you get a step up in basis. This means that you would not have to pay capital gains tax on gains that accumulated during the life of the decedent. A tax that can take a heavy toll if you are exposed is the federal estate tax. It carries a whopping 40 percent maximum rate, but you … [Read more...] about Is There a Connecticut Estate Tax?
The estate planning attorneys here at our firm often explain the anatomy of living trusts to interested clients. Before we proceed to do just that, we should point out the fact that a revocable living trust can be a very useful alternative to a last will. Assets cannot be distributed until the estate has been probated when a will is utilized, and the wait for the inheritors will typically be somewhere around a year. There are also myriad expenses the pile up during probate, and the money … [Read more...] about What Does a Trustee Do?
Small business owners face certain estate planning challenges, and this can be particularly true when there is a partnership. What would take place if one business partner was to pass away? There is a business succession solution that is often utilized when this type of scenario exists. Let’s look at the details. Buy-Sell Agreements Let’s explain by way of example. Suppose you are one of three small business partners. Your business is thriving, and the share that is owned by each respective … [Read more...] about Consider This Succession Strategy for Business Partners
The coronavirus has caused upheaval in society and the economy. But, this unique time also opens up opportunities in estate planning. Read on to learn more. Low-Interest Loans: An Estate Planning Technique … [Read more...] about Low-Interest Loans: An Estate Planning Technique
In this era of coronavirus, planning is more important than ever. This article includes a brief story about a couple who didn’t plan and the family discord it enabled. Read on to learn more. Avoiding Family Chaos in the Coronavirus Age … [Read more...] about Avoiding Family Chaos in the Coronavirus Age
Medicaid is a state-federal partnership that provides medical benefit assistance to certain needy people, especially those over 65 years of age. However, you need to meet financial requirements such as asset limits to qualify. Assets in an irrevocable trust not for your benefit typically don’t count as available. Read on to learn more. Irrevocable Medicaid Trusts … [Read more...] about Irrevocable Medicaid Trusts
Medicaid is a state-federal partnership that provides medical benefit assistance to people who qualify, especially those over 65 years of age. However, in order to qualify, you also need to meet certain financial requirements such as asset limits. However, if you have made “uncompensated transfers,”that could lead to a period of disqualification from the program. Read on to learn more. Uncompensated Transfers … [Read more...] about Uncompensated Transfers
We have all heard of so-called “trust fund babies.” These are children that are born into wealthy families who are beneficiaries of a living trust or some other type of trust. When you set up a trust for the benefit of a minor or an adult who cannot handle his or her own financial affairs for one reason or another, a trustee administers the funds. The trustee is a fiduciary who is bound by law to take actions that serve the best interests of the beneficiary. You may be surprised to hear … [Read more...] about A Pet Trust Can Provide a Solution
Elder law attorneys assist clients that are concerned about legal and financial matters that senior citizens often face. There are a number of different issues that we deal with, but the matter of long-term care is definitely at the top of the list. You may assume that the Medicare program will pay for a stay in a nursing home if you ever need this level of assistance with your day-to-day needs. In reality, Medicare will not pay for the custodial care that nursing homes provide. This is … [Read more...] about Brace Yourself for Long-Term Care Costs
There is more to estate planning than the choices that you make with regard to the way you want your assets to be distributed after you are gone. It is wise to think holistically and envision the hands-on tasks that must be completed to make your wishes come to fruition. With this in mind, we will share some insight into how you can streamline the estate administration process. When you take the right steps, your loved ones will be the ultimate beneficiaries. Executor Duties If you use a … [Read more...] about Streamline the Estate Administration Process