As estate planning attorneys, we encourage people to take the correct actions to protect their loved ones. With this in mind, we are very interested in surveys that are conducted to gauge the estate planning preparedness of American adults. Caring.com has been compiling statistics on an annual basis. They have released their findings for 2021, and the results are very interesting. Pandemic-Fueled Surge The researchers had a new angle to explore this year because of the COVID-19 situation. … [Read more...] about 2021 Estate Planning Survey Yields Mixed Results
Some people are confused about taxes that enter the picture when assets are transferred after someone dies. The terms “estate tax” and “inheritance tax” are used, and there are state and federal levels to consider. In this post, we will provide an explanation so you can go forward with a firm understanding of taxes on inheritances as a Connecticut resident. Estate Tax vs. Inheritance Tax The best place to start is to look at the core differences between an estate tax and an inheritance tax. … [Read more...] about Is There a Connecticut Inheritance Tax?
Some people that know they should have an estate plan do not take action because they feel that they have insufficient resources. This is understandable on the surface, but if you are in this position, you could use life insurance as an income replacement vehicle. Life insurance can also be used to fill the gap or provide an abundance if you have assets, and we will provide some insight here. Term Life Insurance Term life is insurance that does not have any cash value if the triggering … [Read more...] about Life Insurance Can Bolster Your Estate Plan
Estate planning can seem like a mysterious and complicated matter, but it can be broken down to its component parts. In this post, we will look at five essential documents that should be part of every estate plan. Will or Trust The facilitation of asset transfers is at the core of the estate planning process. You could use a will to state your final wishes, but it is not the best choice unless your situation is extremely simple and straightforward. A living trust is the ideal alternative … [Read more...] about You Need These Five Estate Planning Documents
Estate planning should be viewed from a holistic perspective. Yes, you have to state your wishes with regard to asset transfers in a will or trust, but that’s just half of the equation. You should also give the estate administration process careful consideration, and we will provide some food for thought in this post. Will Administration and the Executor’s Role If you use a simple will to serve as an asset transfer vehicle, you would name an executor to act as the administrator after you … [Read more...] about Be Discerning When You Choose an Executor or Trustee
When you are making inheritance planning decisions, you may come to the realization that someone in the family may not be happy with your choices. Under these circumstances, the individual in question may decide that they want to contest the terms of the will or trust. There is a legal step you can take to dissuade a disgruntled person from taking this action. No-Contest Clause You can include a no-contest clause in a trust or a will, and you may see the terms “forfeiture” or “in terrorem” … [Read more...] about Can a No-Contest Clause Really Prevent an Estate Contest?
There is an exercise that is often used during group training sessions. The facilitator hands someone a story written on a slip of paper, and it is passed along via confidential whispers person to person. When everyone has been informed, the last person to hear the news is asked to tell everyone what they were told. In the end, the facilitator reads the original statement word for word, and it is clear that the details were distorted as the story was passed down. This kind of thing enter … [Read more...] about Don’t Buy Into These Estate Planning Myths
We are going to look at Medicaid and home ownership in this post. But before we focus on this subject, we will explain why Medicaid should be on your radar if you will qualify for Medicare. Long-Term Care Costs The United States Department of Health and Human Services tells us that 70 percent of seniors will require some type of living assistance eventually. Over 30 percent of the oldest old have Alzheimer’s disease, and elders with this condition often require nursing home care. When you … [Read more...] about Can You Qualify for Medicaid as a Homeowner?
The majority of American adults are going through life without estate plans, even though most people that reply to surveys say that planning is important. Since there is so much procrastination, there is a temptation to create your own estate plan to get it out of the way. This makes sense on the surface, and a lot of people roll up their sleeves to undertake DIY projects. However, you have to know where to draw the line, and you really shouldn’t take on some tasks that are better left to the … [Read more...] about Five Reasons You Need a Lawyer to Plan Your Estate
Unfortunately, the vast majority of American adults are unprepared from an estate planning perspective. You would expect younger people to be remiss, but they are not alone. Just under 50 percent of older folks that are 55 years of age and older have wills or trusts. If you pass away without a will or a trust, you would die intestate, and we will take a look at the way that an intestate estate is handled in this post. Probate-Free Asset Transfers When a will has been executed, the document … [Read more...] about What Happens If You Pass Without a Will?