Posts Tagged Estate Planning

What If You And Your Child’s Other Parent Cannot Agree On A Guardian?

On February 9, 2021   /   Blog  
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What If You And Your Child’s Other Parent Cannot Agree On A Guardian?

It goes without saying that you and your child’s other parent should name the same guardian for your children. But what if you are divorced, or for whatever reason you and your spouse cannot agree on the most suitable guardian? Naming different guardians will lead to a battle in court should you and the children’s other parent pass away while your children are still minors. The decision over guardianship will then be in the judge’s hands. Part of the solution this situation is to leave a Letter of Explanation outlining your reasons for choice of guardian. It is important to have an experienced attorney assist you in the drafting of such a letter, but here are the basics of what should bet included: Who the children would prefer, that is, the relationship between the children and the prospective guardian Why your choice of guardian will best meet the children’s needs,

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Eight Factors To Consider When Choosing A Guardian For Your Children

On February 4, 2021   /   Blog  
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Eight Factors To Consider When Choosing A Guardian For Your Children

Who should raise your children if for some reason you or your spouse is unable to do so? It’s not an easy question to answer, but if you have young children, it is a topic you most certainly should address in your estate plan. Otherwise, a court will decide, and their decision will probably not be the same as the one you would have made, and may not even be in the best interests of your children. Some of the most important issues to consider when choosing a guardian include: Does the prospective guardian have a genuine interest in your children’s well-being? Does the prospective guardian share your values? Can he or she handle the role physically and emotionally? What about financially, if you cannot provide him or her with enough assets to raise your children? Does the prospective guardian already have children of his or her own? Will he

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Did You Know That Americans Did Not Always Pay A Personal Income Tax?

On February 2, 2021   /   Blog  
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Did You Know That Americans Did Not Always Pay A Personal Income Tax?

As we enter the 2020 tax season, however unwillingly and with gritted teeth, you might be interested to know that Americans did not always pay personal income taxes. The policy of taxing personal income began with the onset of the Civil War, when Congress passed the Revue Act of 1861. This was a new direction for a Federal tax system based mainly on excise taxes and customs duties. However, Congress soon realized there were certain inadequacies with the new income tax policy. No taxes were actually collected until the following year, when a new law was passed on July 1st. This law made important reforms to the 1861 law, many of which we find in various forms today. These include a two-tiered rate structure based on income, a standard deduction ($600), and taxes being “withheld at the source” by employers to ensure timely collection. By now you must be wondering

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Giving To Charity Wisely

On January 28, 2021   /   Blog  
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Giving To Charity Wisely

Charitable giving allows you to assist the people and organizations that have come to mean the most to you over the course of your life. It represents a thoughtful expression of your values and can ensure your legacy for generations to come. If done properly, it can also be an excellent way to significantly lower taxes, so that the greatest possible amount of your gift is available for the recipients of your generosity, and at the same time, more of your hard-earned wealth is preserved for you and your loved ones. Some of the benefits of giving to charity, and the advantages of having an experienced estate planning attorney design your charitable giving plan, include: Memorializing your family name Reducing capital gains or estate taxes Supporting causes and institutions important to you and other family members Allowing you to make charitable contributions while you are alive and after you are

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The Roth IRA Versus The Traditional IRA: Which One Is Right For You?

On January 26, 2021   /   Blog  
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The Roth IRA Versus The Traditional IRA: Which One Is Right For You?

Deciding whether to choose a Roth IRA or a Traditional IRA is an important decision and can have major financial consequences. Both options, however, are excellent ways to save for retirement. Let’s look as some of the biggest differences between the two. Roth IRA Your contributions are not tax deductible There is no mandatory distribution age Earnings and principal are tax free if you follow all rules and regulations Not everyone can open a Roth IRA. Individuals with modified adjusted gross incomes above $137,000 are not eligible. The figure for married couples filing jointly is $203,000 Principal contributions can be withdrawn any time without penalty (certain conditions do apply) Traditional IRA Depending on your level of income, your contributions may be tax deductible You can make withdrawals without penalty beginning at age 59 1/2. Deductions are mandatory when you reach the age of 70 1/2 When you make withdrawals from

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Have You Reviewed Your Beneficiary Designations Lately?

On January 21, 2021   /   Blog  
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Have You Reviewed Your Beneficiary Designations Lately?

Maybe it’s an insurance policy you took out years ago. Or the retirement plan you set up with your employer the day you started working for the company. Or the IRA you have been scrupulously contributing to for two decades. You created them all to protect your financial future and that of the people you care about most. But over time, your personal situation may have changed. Perhaps you have gotten divorced and remarried? Or one of your children has gotten married, and you are not exactly thrilled with your new son or daughter in law? The fact is, change is a part of life. The question is, have your beneficiary designations kept pace with the changes in your life? We understand that reviewing your designations is something that’s easy to put off, the kind of chore you’ll get to “any day now.” The consequences of not doing so, however,

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Selling Your Business To The Highest Bidder Is Not Necessarily The Best Option

On January 19, 2021   /   Blog  
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Selling Your Business To The Highest Bidder Is Not Necessarily The Best Option

If you own a business and have not put a succession plan in place, you might be thinking that the best choice, when the time comes to retire, is to simply sell your business outright to the highest bidder. However, selling your business to your employees may be a better option in certain situations, through what is known as an Employee Stock Ownership Plan (ESOP). Here’s how an ESOP works. The company in question creates a trust on behalf of its employees. A portion of the profits are directed into the trust, which in turn uses the money to purchase the owners’ shares. This purchase can take place over time or all at once. Employees can minimize the potential burden of the purchase by borrowing against future earnings, without incurring costs upfront. How prevalent is the use of ESOPs in business transitions? There are currently more than 10,000 companies successfully

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Choosing A Trustee for Your Special Needs Trust

On January 12, 2021   /   Blog  
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Choosing A Trustee for Your Special Needs Trust

Choosing the right trustee for any trust is a difficult and extremely important decision. In the case of choosing the right trustee for the trust you have created to protect your loved one with special needs, the decision is even more important—particularly if your loved one is a young child. Let’s take a look at some of the options and discuss the pros and cons of each. Your Parents Many couples consider this first. After all, your parents know and love your children, and understand your wishes. However, this is only a temporary solution, as your special needs trust must protect your loved one with special needs for his or her entire lifetime. Your Siblings Like your parents, this may be a good temporary solution. But the same drawback applies here as well. Your siblings are unlikely to outlast the trust itself, and you will need a successor trustee. Your

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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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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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