There are many tools in the estate planning toolkit, and as a layperson, you may hear bits and pieces about some of them. Incomplete information can lead to mistakes that yield negative consequences later on, so knowledge is power in this regard. With this in mind, we will look at the estate planning device called the life estate in this post. Real Property Transfers You can potentially use a life estate to facilitate the future transfer of your place of residence or any other type of real … [Read more...] about Why Would Someone Use a Life Estate?
Why do you have a “Last Will and Testament.” Even Estate Planning attorneys are unlikely to know the etymology of the term. It was the subject of a recent question on “Jeopardy.” Read on to learn more. … [Read more...] about “Last Will and Testament” Origin
Some government programs have similar sounding names, and this can lead to confusion and misunderstandings. With this in mind, let’s look at the differences between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI When you remit payroll tax payments, you eventually get something in return of your contributions. You earn retirement credits that are used to qualify for Social Security and Medicare. In 2021, you get one credit for every $1470 in taxable … [Read more...] about SSI and SSDI: What Are the Differences?
Estate planning can be approached in two different ways. You can stay in the present without any particular legacy plan and resolve to leave behind anything that may be left after your passing. The alternative is more intentional and comprehensive. Some people have specific legacy goals, and they want to make sure that they protect the well-being of their loved ones every step of the way. If you fall in the latter category, life insurance can be quite useful, and we will take a look at the … [Read more...] about Life Insurance Can Be a Useful Part of Your Estate Plan
When your property is passed on to your loved ones after you are gone, your legacy will live on. We all need monetary assets, but there is also a sentimental component, so these transfers are quite meaningful. As you start to get up there in years and contemplate your legacy, asset protection should be in the forefront of your thinking, because there is a looming threat. Long-Term Care Costs Once you reach the age of 67, your life expectancy is 87 years if you are woman, and it is 85 years … [Read more...] about Medicaid Planning: Take Action to Protect Your Legacy
Passing away is one of the sure things of life, but most people have done nothing to prepare for this inevitable event. How significant is the lack of preparedness? Caring.com endeavors to answer this question each year when they conduct their annual surveys, and the 2021 results have been released. Good News and Bad News Over recent years, fewer and fewer people have estate plans in place, but the COVID-19 pandemic seems to have gotten the attention of younger adults. Without question, … [Read more...] about 2021 Estate Planning Survey Yields Surprising Results
Probate is a legal process that is necessary when you transfer assets through the terms of a will. In New York, the Surrogate’s Court has jurisdiction over estate matters. This court also provides supervision when someone passes away without any estate planning documents at all. It should be noted that there is a simplified probate process in New York for small estates with a gross value of $50,000 or less. When you are planning your estate, you should definitely have some understanding of … [Read more...] about Four Things You Should Know About Probate
There can be some confusion when it comes to the taxes that can be levied on inheritances. You may have heard the terms “estate tax” and “inheritance tax” utilized, and they can leave you scratching your head. Are these two different taxes, or are the terms used interchangeably? Do they refer to income taxes on inheritances? These are good questions, and we will provide clarifications in this post. Income Taxes Life insurance policy proceeds and an inheritance that you receive through the … [Read more...] about Is There an Inheritance Tax and an Estate Tax?
Beneficiary designations can be deceptively simple. But their simplicity is sort of like an iceberg. Danger lurks beneath those tranquil waters, both for the client and the attorney. Designations for IRAs and retirement plans can be particularly complicated, especially after the SECURE Act. This article focuses on beneficiaries who don’t fall under the standard 10-year payout of the SECURE Act. Read on to learn more. … [Read more...] about Beneficiary Designations and the SECURE Act: Eligible Designated Beneficiaries
It can be difficult to know where to begin when you are thinking about the estate planning process. There are variations depending on the circumstances, but there is an underlying framework that applies to everyone, and we will break it down in this post. Asset Transfer Vehicle An asset transfer vehicle will be at the core of your estate plan. You could use a will, but this would not be the right choice unless the situation is extremely simple and straightforward. The revocable living trust … [Read more...] about You Need These Estate Planning Documents