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
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Can You Give Gifts to Avoid Estate Taxes?
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?
Intestacy Can Yield Negative Consequences
Estate planning unpreparedness is widespread among Americans, and it is getting worse as the years pass. Caring.com has conducted surveys to keep a finger on the pulse of this matter over the last few years, and the numbers are not encouraging. In 2020, just 32 percent of adults have estate plans in place. The figure was 40 percent in 2019, and in 2018, it was 42 percent. According to the study, 16.4 percent of people between 18 and 34 had estate plans. Just over 27 percent of people in … [Read more...] about Intestacy Can Yield Negative Consequences
The Basics: “HIPAA” Powers
This is the second in a three-part series of articles on Powers of Attorney. The first article examined the Financial Power of Attorney. This second article examines the Healthcare Power of Attorney and Advance Directive. Read on to learn more … [Read more...] about The Basics: “HIPAA” Powers
Medicaid Waiver Can Preserve Resources
The most pressing elder law concern at the present time is the matter of long-term care and the costs that go along with it. Many people assume that Medicare would pay for living assistance, but in fact, this program does not pay for custodial in-home care or a stay in a nursing home or assisted living facility. Long-Term Care Costs About 70 percent of elders will eventually need help with their activities of daily living, so this is a situation that you should take quite seriously. Genworth … [Read more...] about Medicaid Waiver Can Preserve Resources
