Some of the tools that are mentioned during retirement or estate planning will refer to a contribution being “tax deferred” as a benefit. But what exactly does this mean? Tax deferred normally means that you will not pay a tax now, but will later. This phrase is commonly used when discussing various retirement plans. For example, an employer-sponsored 401K plan is considered tax deferred. When money is taken from your paycheck and put into your 401K account, that is income that is not taxed … [Read more...] about What Does the Phrase “Tax-Deferred” Mean in Retirement Planning?
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Who Pays the Bills When you Die?
When you pass away, what happens to your bills? Unfortunately, they live on, and one of the tasks that takes place in probate, the legal process that administers an estate when someone dies, is the payment of debt of the deceased. So who is tasked with this chore? Your estate’s executor handles this and many other duties during probate. Other tasks that take place during probate include: Assets are inventoried; Creditors are located and notified of the death; Beneficiaries (if there was … [Read more...] about Who Pays the Bills When you Die?
Veterans’ Aid and Attendance Benefits
Did you know that the Veterans Administration offers a Veterans’ Aid and Attendance Pension as a benefit to eligible retired military personnel and their spouses? The program, called the A&A Pension, provides a monthly benefit for veterans and their surviving spouses that require assistance with the activities of daily living (ADL), such as bathing, cooking, and eating. In 2011, the benefit provides up to $1,632 monthly to a veteran, $1,055 to a surviving spouse, or $1,949 to a couple. … [Read more...] about Veterans’ Aid and Attendance Benefits
New York’s Estate Tax
While the Federal estate tax has been in the news lately, many do not realize that New York State has an estate tax as well, as do several other states in the country. If you are a New York resident and your estate is valued at $1,000,000 or more, then your estate plan may need to address this tax burden. In addition, residents of other states who own real estate and/or tangible personal property located in New York, may also be subject to New York estate taxes. There are a number of estate … [Read more...] about New York’s Estate Tax
Can you Answer These Five Questions on Your Estate Plan?
Many people avoid estate planning, as it is a topic that deals with several sensitive subjects, such as death, money, business arrangements, and family relationships. Some will put off even creating a will, as they would have to choose a guardian for their children, meaning they will have to address the heartbreaking scenario of someone else raising their kids. But consider the alternative, should you pass away with no will, it would be up to Surrogate's Court to determine the guardian for … [Read more...] about Can you Answer These Five Questions on Your Estate Plan?
