Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the estate. But, there are two potential traps in this.Read on to learn more … [Read more...] about Removing Life Insurance from the Taxable Estate
As elder law attorneys, we are tightly focused on matters that are of interest to senior citizens. According to the U.S. Census Bureau, 10.6 percent of people in Rochester were 65 years of age and older in 2019. This is a very significant portion of the population, and these folks have concerns about the eventualities that they may face as time goes on.There are a number of different elder law issues that are a source of concern at the present time, including physical and emotional elder … [Read more...] about Be Aware of Medicare Gaps
Many people are not aware of the fact that the executor cannot act in a vacuum when you use a last will, because a legal process called probate will enter the picture. The executor would admit the will to probate, and the court would provide supervision during the process.This being stated, there are certain types of asset transfers that are not subject to probate. We will take a look at them in this blog post, and we will also explain the value of a proactive probate avoidance … [Read more...] about When Is Probate Necessary?
Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the taxable estate. But there are two potential traps in this. The prior article examined the first trap, the three-year lookback of Section 2035. This article will examine how the Transfer for Value rule can make life insurance taxable. Read on to learn more about how to avoid the income taxation of life insurance.Read on to learn more … [Read more...] about Removing Life Insurance Without Triggering the Transfer for Value Rule
In many ways, the tax laws that pertain to postmortem asset transfers are favorable to inheritors. You do not have to report an inheritance on your income tax returns, and if you inherit appreciated assets, you get a step-up in basis. For capital gains purposes, you would not be responsible for appreciation that accumulated during the life of the decedent.There is the end of the tax story for most people, but high net worth individuals have some other taxes that can have a very significant … [Read more...] about Can You Give Gifts to Avoid Estate Taxes?