Distributions from a Roth IRA to the beneficiary are not taxed, but traditional individual retirement account distributions must be reported. All of the money in either type account must be distributed to the beneficiary within 10 years of the transfer. This is another detail that was changed when the SECURE Act was put into place. Account holders were previously allowed to take mandatory minimum distributions for an open-ended period of time. There was no ten-year mandate. … [Read more...] about What are the rules for the beneficiary of an inherited individual retirement account?
When the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was passed, some new rules for individual retirement account holders were established. The primary difference is the way that taxes are paid. With a Roth individual retirement account, the contributions are made after taxes have been paid on the income. The reverse arrangement is in place with a traditional IRA. You can start to accept penalty free withdrawals from either account when you are 59 ½ years … [Read more...] about What is the difference between a traditional IRA and a Roth individual retirement account?
The exact age at which you can receive your full retirement benefit depends upon the year of your birth. People that were born between 1943 and 1954 become eligible at the age of 66.It then goes up by two months per year until 1960 when it tops out at 67 years of age.You do not have to wait until you reach this age to start to collect a benefit. If you are willing to accept a reduced benefit, you can file for your benefit when you are as young as 62. Depending on the year of your birth, … [Read more...] about What is the Social Security eligibility age?
Everyone knows that a living will is a document that you can use to express your final wishes with regard to monetary transfers. A living will is an advance directive for health care that is used to state your preferences regarding the utilization of life-sustaining measures in the event of your incapacity.A living trust is an alternative to a last will as an asset transfer device, and many people would say that it is the far better choice. When you have a living trust, the trustee would be … [Read more...] about What’s the difference between a living will, a living trust, and a last will?
There is no law against it, but you may want to take pause before you go the DIY route. You may have heard about websites that sell do-it-yourself legal documents, including last wills. They contend that it is easy for anyone to take care of legal matters if you download their boilerplate worksheets.When you think about the process of estate planning, it is the act of giving everything that you have accumulated throughout your life to the people that you love the most. Since the stakes are … [Read more...] about Can you create your own last will without an attorney?
If you use a last will to state your final wishes with regard to the distribution of your assets, you would name an executor in the document. This is the person or entity that would administer your estate after you are gone. We are including the term “entity” because there are professionals that provide estate administration services.The executor would not be allowed to follow the instructions in the will and act independently to distribute the resources. After the passing of the testator, … [Read more...] about How long does it take for my heirs to get their inheritances if I use a will?
This is one of the most widely held misconceptions about estate planning. Many people think that trusts are only useful for multimillionaires, but this is really not the case at all.There are some types of trusts that are used by high net worth individuals that are exposed to estate taxes, but there are other trusts that can be useful for people of relatively ordinary means. The optimal choice will depend upon the circumstances. … [Read more...] about A last will is the right asset transfer document for anyone that is not wealthy, right?
For the past more than 32 years, we’ve helped people in the Rochester and Finger Lakes areas custom craft estate plans that address the issues that are most important to their families. Whether it’s avoiding court involvement to settle their estate, making sure that their family doesn’t have to go to court when they’re incapacitated, or protecting their children’s and grandchildren’s inheritances from things like divorces, lawsuits, and threats that present themselves. We provide … [Read more...] about Why do I need to attend an estate planning workshop?
How can I leave money to a special needs beneficiary without disqualifying them for SSI or other benefits that are tied to their SSI eligibility?Learn about a supplemental needs trust, which allows us to set money aside for a beneficiary to enhance their quality of life, to pay for things that the government won’t pay for, and not disqualify them from receiving their important government benefits. Call our office at (585) 374-5210 to learn more about how we can help you … [Read more...] about What do I need to know about a Supplemental Needs Trust?
Planning for Medicaid eligibility has become one of the biggest concerns in our community. The annual cost of a typical nursing home in our area is $170,000. Don’t lose what you’ve taken a lifetime to build. Plan ahead and protect your assets and stay in full control. Contact our firm at 585-374-5210 to learn how we can help you. … [Read more...] about What do I need to know about Medicaid planning?