The federal estate tax can have a significant impact on your legacy, because it carries a 40 percent top rate. Fortunately, you can transfer a certain amount tax free before the estate tax will become applicable. This figure is called the estate tax exclusion. It is increased every year to account for inflation, and since the new year is upon us, the 2021 figure has been released. Before we share it, we will take a look at the path we have taken to get to this point. The Road to the Historic … [Read more...] about Federal Estate Tax Exclusion Will Rise in 2021
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Preparing for the Unexpected…and the Eventual
The world is an unusual place. Things you’d never expect to happen sometimes actually do happen. There are natural disasters and unusual phenomenon. It’s important to prepare, not just for the unexpected but the eventual, as well. Read on to learn more. … [Read more...] about Preparing for the Unexpected…and the Eventual
Do Beneficiaries Pay Taxes on Living Trust Distributions?
When you come into money for any reason, you expect the taxman to be expecting a share, so you would naturally apply this dynamic to inheritance transfers. Generally speaking, inheritances are not subject to regular income taxes because an estate is accumulated after taxes have been paid. However, there is a shade of grey when it comes to distributions of assets that are held by living trust, and we will explain the details in this post after we provide a general overview. Living Trust … [Read more...] about Do Beneficiaries Pay Taxes on Living Trust Distributions?
A Look At 2021 Medicare Cost Increases
In a recent post, we shared information about the Social Security cost-of-living increase and some other updated parameters for that program. We stated that we would pass along the new Medicare numbers when they became available, and that time is upon us. Four Part Program Medicare is broken up into four distinct parts, and they correspond to the first four letters of the alphabet. Part A is the hospitalization coverage, and Part B pays 80 percent of costs associated with covered treatments … [Read more...] about A Look At 2021 Medicare Cost Increases
Is a Will Needed If You Have a Living Trust?
Do you need a will if you have a living trust? We will provide the answer in this post, but we will explain some of the benefits that living trusts provide before we address that question. Streamlined Estate Administration When you have a living trust, you facilitate a straightforward and efficient administration process. You would act as the trustee while you are living, so you would have total access to the assets in the trust. In the trust declaration, you would name a successor trustee … [Read more...] about Is a Will Needed If You Have a Living Trust?
