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?
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
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
Beneficiary designations can be deceptively simple. You simply designate the person to whom you want the assets to go. But their simplicity is sort of like an iceberg. Danger lurks beneath those tranquil waters, both for the client and the attorney. Read on to learn more. … [Read more...] about Beneficiary Designations
Now that we have a new presidential administration and blue majorities in the House and Senate, some legislative priorities have changed. There could be an expansion of the taxes that impact inheritances, and we will look at these potential changes in this post. Elimination of Step-Up in Basis At the present time, inherited appreciated assets get a stepped-up basis. To explain through the use of a simple example, let’s say that you inherit a thousand shares of stock from your uncle. He paid … [Read more...] about Shifting Priorities May Impact Federal Transfer Taxes
People sometimes circulate “tips” about estate planning that they hear about, and the ideas may sound good on the surface. However, the so-called simple solutions can create significant complications in the long run, and we will look at two of them in this post. Joint Tenancy You can file the appropriate paperwork to add a co-owner to the title of your property. This would create the condition of joint tenancy, and this can be done with real property, financial accounts, and personal … [Read more...] about Steer Clear of Risky Inheritance Planning Ideas