The vast majority of American adults do not have estate plans in place, and some folks simply do not feel as though it is necessary. This is a mistake, and we will provide some food for thought in this post. Avoid Intestacy Some people that do not have plans intend to draw up a simple will at some point when they are senior citizens. Unfortunately, people pass away at all ages every day, and the condition of intestacy would exist if you die without a will or trust. Under these … [Read more...] about Why Is an Estate Plan Necessary?
When you are planning your estate, you should understand the estate administration process that will commence after your passing. This will sometimes involve probate, and we will provide some important facts about this process in this post. Court Supervision Most people are aware of the fact that an executor is the person that will eventually distribute inheritances when a will is used as an asset transfer vehicle. The executor is not allowed to administer the estate without any type of … [Read more...] about Why Do Some People Avoid Probate?
If you live in Connecticut, you may want to retire to a location that has a milder climate, and this is understandable. In addition to the weather, you should also consider the tax climate when you are choosing a retirement destination. Income Taxes on Retirement Income There are 41 states in the union with state-level estate taxes, so you do not have to pay taxes on any type of income if you live in any one of nine states. They are Texas, Florida, Nevada, South Dakota, New Hampshire, … [Read more...] about Consider the Tax Climate When You Pick a Retirement Spot
When you plan your estate on your own without any legal counsel, mistakes can be made that lead to problems later on. This is demonstrated by a court battle that was waged in Pennsylvania last year. Power of Attorney Debacle The person at the center of this imbroglio is a woman named Mercedes Goosley. She downloaded a durable power of attorney form on the internet because she wanted to give her son, Joseph, the right to act on her behalf. Goosley was in her 80s at the time. This is in 2013, … [Read more...] about Family Feud Was Fueled By DIY Planning Error
You should take a holistic approach when you are looking ahead toward your active retirement years and the twilight years that will follow. At first, the goal is to enjoy your freedom, spend quality time with your family, and cross things off your bucket list. As the years pass, you may find that you need help with your activities of daily living. According to the United States Department of Health and Human Services, nearly three-fourths of seniors will need long-term care, and over half … [Read more...] about Medicaid Waiver Can Be Part of Your Life Care Plan
There are some estate plan details that many people do not think about. This is one of the reasons why you should work with an attorney to develop your plan. In this post, we will look at some of the aspects that you may not consider. Child Guardianship and Asset Management You should definitely have an estate plan in place if you are the parent of a dependent child. A guardian for the child should be named in a simple will, and you should consider the matter of asset management for a minor … [Read more...] about Don’t Overlook These Estate Plan Details
You may be reluctant to establish a trust if you are under the impression that you cannot revoke the trust after it has been created. After all, you do not have a crystal ball, and you may find that you need the assets yourself at some point. This is an understandable concern, and a lot of people think this way, but it is actually a misconception. Irrevocable Trusts There are irrevocable trusts that you cannot dissolve under most circumstances, and you cannot act as the trustee when you … [Read more...] about Can You Change Your Mind and Dissolve a Trust?
Estate planning can seem complicated and overwhelming if you do not know anything about it, and this is understandable. In this post, we will break it down to some easy-to-understand steps to help you get started if you are currently unprepared. Evaluate Your Assets It is important to inventory your assets and tally up the value of the resources that you intend to pass along to your loved ones. You should attach a dollar figure to your estate because of potential estate tax exposure. The … [Read more...] about Follow These Steps to Create Your Estate Plan
You may have heard about the elaborate estate plans that have been created by some very wealthy people. As a case in point, a number of years ago, the estate of the “Queen of Mean,” billionaire Leona Helmsley, was in the news. She may have been mean to some, but she had an entirely different attitude when it came to her Maltese, Trouble. Helmsley left the dog a trust fund that was stuffed with $12 million that was earmarked for the care of the animal. If you are thinking that Trouble was … [Read more...] about Pet Trusts Are Not Strictly for the Rich and Famous
You can enjoy dual benefits if you establish an asset protection structure for your small business. Your resources will be out of harm’s way, and you may be able to reduce your tax liability. Limited Liability Company One structure that can be very useful for a wide range of business owners is the limited liability company (LLC). If you make your business an LLC, you would not be held personally liable if legal actions are taken against your business by creditors or other … [Read more...] about Small Business Asset Protection Includes Tax Benefits