You may be wondering whether your children will owe capital gains taxes on the assets they inherit. The good news is that most inherited assets receive a step-up in basis, which will typically eliminate liability. However, other tax considerations may still come into play. Understanding how taxes affect inheritances can help you structure your estate … [Read More]
What Are UGMA and UTMA Accounts?
UGMA and UTMA accounts are two types of custodial accounts that parents or grandparents can open for their children or grandchildren. These accounts allow for asset transfers to children while still retaining control over the account until the child reaches a certain age. However, there are some key differences between UGMA and UTMA accounts that … [Read More]
Do I Report an Inheritance to the IRS?
When you receive an inheritance, you might wonder about your obligations to the IRS. Taxes can be confusing, and understanding your responsibilities ensures you stay compliant. Below, we’ll explore what you need to know about reporting an inheritance. Understanding How Inheritances Are Taxed An inheritance itself is not considered taxable income by the IRS. If … [Read More]
How Long Does It Take to Probate an Estate in Connecticut?
For the average person, one of the primary motivations for creating an estate plan is to ensure that their loved ones are provided for after their death. One thing that people often fail to consider though, is how long it will take for their loved ones to actually receive the assets earmarked for them in … [Read More]
How Do I Avoid Medicaid Estate Recovery in Connecticut?
There is a Medicaid estate recovery mandate. The program is required to seek reimbursement from the estates of deceased beneficiaries. [Read More]
Medicaid Planning Myths In Connecticut That Cost Families Money
Medicaid planning in Connecticut is full of half-truths, outdated advice, and well-meaning recommendations from people who are absolutely confident and only occasionally correct. The result is that families wait too long, make avoidable mistakes, or assume Medicaid will work like a simple application when it is actually a rules-based eligibility system with serious financial consequences. … [Read More]
Life Insurance and Trusts: Building a Safety Net for Children
When you have young children, one of your greatest responsibilities is making sure they are cared for if you are no longer here. Estate planning may not be at the top of your list, but it should be. A key part of that plan is creating a financial safety net for your children. Life insurance … [Read More]
How Does a Special Needs Trust Work?
Families who support a loved one with a disability often face difficult questions about the future. They want to provide financial security, but they also want to protect access to important public benefits. A special needs trust is one of the most effective tools for meeting both goals. It allows you to set aside money … [Read More]
Long-Term Care Planning: Action Is Required
One of the challenging things about aging responsibly is that you have to anticipate future eventualities. Unfortunately, they are not always pleasant, but proactive planning can make a difficult situation much more manageable. This dynamic enters the picture when it comes to long-term care planning. A lot of people assume that they will always be … [Read More]
5 Things You Need to Know About Creating a Will in Connecticut
Most people think estate planning equals creating a will. If you are not extremely wealthy, that assumption feels reasonable. Creating a will in Connecticut sounds like the responsible, common-sense step that covers the basics. The problem is that a will is only one method of transferring assets, and it comes with built-in limitations that are … [Read More]
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