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How To Get The Most Out of Retirement: “Stretching & Protecting” Your Wealth

On January 7, 2021   /   Blog  
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How To Get The Most Out of Retirement: “Stretching & Protecting” Your Wealth

While there may have been a time when people looked to their employers and Social Security to finance their retirement, those days are long gone. The reality today is that to enjoy a comfortable retirement, not to mention the ability to provide for your loved ones and ensure your legacy, you should have an adequately funded, well-designed retirement plan. We can help you develop such a plan, by “stretching and protecting” your wealth. What do we mean by this? “Stretching” refers to maximizing income tax deferral and wealth accumulation while minimizing tax liability. “Protecting” involves minimizing the threats posed by creditors or predators. As an experienced estate planning law firm, we can evaluate all options for minimizing tax liability and the erosion of savings that results from paying too much in taxes. We can also utilize a range of tools for reducing taxes in your golden years, including taxes on

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Why You Need Advance Directives

On January 5, 2021   /   Blog  
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Why You Need Advance Directives

Advance directives give a person of your choosing the authority to make decisions on your behalf about the type of care you want in the event of incapacity or an end of life situation. Your directives may contain instructions about the types of medical treatments you would or would not want to be taken to keep you alive if you are in a coma or vegetative state. In effect, advance directives allow you to decide, while you are alive and well, the type of care you want and the person you want to make the decisions for you. They allow you to better ensure that your wishes will be followed, and spare your loved ones from making such important decisions on your behalf without knowing what you would have wanted. Nobody wants to think about advance directives, but the consequences of not creating them far outweigh the difficulty of creating

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The Gift That Keeps On Giving: Paying Your Grandchildren’s College Tuition

On December 31, 2020   /   Blog  
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The Gift That Keeps On Giving: Paying Your Grandchildren’s College Tuition

Paying your grandchildren’s (or adult children’s) college tuition is one of the greatest gifts you can make. The education lasts a lifetime and opens a world of opportunity for your grandchildren. In a way, it is like giving a gift to your children as well, since it alleviates their concerns about paying for their children’s education on their own. And when done correctly, the gift of a college education can be an excellent estate planning tool. One way to help pay for your grandchildren’s education is to simply give them part or all of the money to cover tuition. The gift tax exclusion is currently $15,000 per person per year, and $30,000 for a married couple, which can go a long way toward covering the tuition for most colleges. Of course, giving the money to your grandchildren directly carries with it a big risk. Are they genuinely interested in using

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Five Factors to Consider When Purchasing Long-Term Care Insurance

On December 29, 2020   /   Blog  
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Five Factors to Consider When Purchasing Long-Term Care Insurance

The United States Department of Health and Human Services estimates that approximately 70 percent of Americans over the age of 65 will need some type of long-term care. Contrary to what many people believe, Medicare does not cover long-term custodial care. Given the cost of such care, it makes sense to consider your options, in advance, about how to obtain the care you might very well need without exhausting your life savings to pay for it. One such option is long-term care insurance. Here are some factors to consider regarding the purchase of a long-term care insurance policy. Your age and health matter. The younger you are when you purchase long-term care insurance, the less expensive it will be. Unfortunately, if you have conditions such as diabetes or heart disease, your application might be rejected. It is better to have some coverage than none at all. The very best plans,

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How The Portability Provision Can Double Your Exemption From Federal Estate Tax

On December 24, 2020   /   Blog  
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How The Portability Provision Can Double Your Exemption From Federal Estate Tax

For legally married couples, the portability provision allows for the transfer of the federal estate tax exemption from the estate of a spouse who passes away to the estate of the surviving spouse. Given that the maximum federal estate-tax exemption in 2019 is $11.4 million per person, by making use of the portability provision, the federal exemption upon the second spouse’s death can increase from $11.4 million to $22.8 million. Portability was first introduced as part of the Tax Relief, Unemployment Re-authorization, and Job Creation Act of 2010 (“TRA 2010”), and became effective for married persons dying on or after January 1, 2011. While the winds of political change have led to calls for a reduction in the exemption over the years, there is no plan to phase out the portability provision any time soon. In order to take advantage of the portability provision, IRS Form 706 should be filed

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Think Twice Before Deciding To Serve As Trustee

On December 22, 2020   /   Blog  
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If you have been asked to serve as a trustee, chances are you were initially flattered by the request. After all, it is quite an honor—a parent or other loved one thinks highly enough of you to entrust you with the management of a major portion of their life’s savings. However, before agreeing to serve as trustee, it is important to consider the responsibilities involved. Administering a trust typically involves all of the following duties, and sometimes many more: Locating and protecting trust assets Collecting life insurance policies, annuities, and retirement accounts that name the trust as the primary beneficiary Coordinating settlement of the estate with the personal representative if a probate administration is necessary Obtaining the values of all trust assets at the time of the trustmaker’s death. These assets include real estate and business interests Ascertaining and paying off all of the trustmaker’s debts from funds remaining in

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Moving On—Help for Seniors Relocating To Nursing Homes Or Assisted Living Facilities

On December 17, 2020   /   Blog  
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Moving On—Help for Seniors Relocating To Nursing Homes Or Assisted Living Facilities

Moving to a new home is stressful in and of itself. When the move involves a senior relocating to a nursing home or assisted living facility, the situation is considerably more complicated, both emotionally and physically. Fortunately, a number of companies now specialize in helping seniors and their loved ones move to long-term care facilities, or even relocate to smaller, senior-friendly private homes. Together, these companies are known as Senior Move Managers. The National Organization of Senior Move Managers (NASMM) was formed in 2002. NASMM now comprises Senior Move Management companies across the United States, Canada, and overseas. According to the NASMM website, Senior Move Managers typically provide all or some of the following services, depending on the particular company and the senior’s specific needs: Creation of an overall move or “age in place” plan Organizing the move, sorting belongings, and downsizing Customized floor plans Arranging for the profitable disposal

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The Benefits and Risks of Giving Children Their Inheritances While You Are Alive and Well

On December 15, 2020   /   Blog  
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The Benefits and Risks of Giving Children Their Inheritances While You Are Alive and Well

According to a Merrill Lynch retirement study, 60 percent of people over the age of 50 would rather give inheritances sooner rather than later. Why? Many say they simply want to be there to enjoy helping their children pursue their dreams and realize their goals. If you are interested in giving inheritances to your children while you are alive rather than after you pass away, you must consider a number of issues. For example, one of your children might need assistance now to pay off student loans or other debt, while his or her siblings may not. Or, perhaps one of your children is starting a business and would benefit greatly from your gift. The question is, if you give money to one child now, do you have a responsibility to give the same gift to your other children? The key to solving this thorny issue is to speak openly

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With Premiums Rising Dramatically, Should You Keep Your Long-Term Care Insurance?

On December 10, 2020   /   Blog  
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With Premiums Rising Dramatically, Should You Keep Your Long-Term Care Insurance?

When clients ask us whether it is right for them, we consider their overall plan and unique situation. Sometimes we recommend long-term care insurance, sometimes we don’t, depending on the client’s needs and goals. But what if you’ve already purchased long-term care insurance, and you’ve seen your premiums rise dramatically in recent years? First of all, you’re not alone. In some cases, premiums have gone up as much as 40 to 60 percent in recent years. The reason is that many insurance companies have suffered major losses on policies written more than ten years ago, and they are looking to recoup those losses. (A number of companies no longer offer long-term care insurance at all.) If your premiums have increased, should you keep the policy? Make changes to it? Look for a cheaper one? Here are some factors to consider: If your policy is more than two years old, you

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Planning Tips For Singles

On December 8, 2020   /   Blog  
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Planning Tips For Singles

The 2013 United States Census indicated that 54 percent of women over the age of 65 were not married. The figure for men over 65 was 27 percent. There are many reasons for this, of course, including divorce, the death of a spouse and changes in the way couples today view marriage. However, one thing unmarried people seem to have in common is that their planning needs can be quite different from those of married couples. And, according to an article in the Wall Street Journal, many singles are unprepared for retirement. For example, a Rand Corporation study showed that 20 percent of married couples will not save enough for retirement, whereas 35 percent of single men and 49 percent of single women will enter retirement financially unprepared. Why is there such a large disparity. One reason is that there are factors working to lower singles’ income and investible resources.

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