Posts Tagged Estate Planning

Is It Better To Buy Or Rent A Home In Retirement?

On December 1, 2020   /   Blog  
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Is It Better To Buy Or Rent A Home In Retirement?

Maybe you’re looking to relocate to a state you’ve always dreamed about living in. Or perhaps you just want to downsize to a more manageable property. Whatever the reason, the decision whether to buy or rent a home in retirement is a difficult one. A recent article in Consumer Reports Magazine offers some helpful advice on making this decision. One of the most important factors to consider is how long you expect to live in your new home. Retirement does not necessarily mean you’ll never want (or need) to move again. The shorter you reside in the home, the less financially attractive purchasing it becomes. You will have less time to recoup closing and moving costs, and if you finance the home, you will have little equity in the new property when you sell it. In addition, the federal income tax reduction on mortgage interest may be less advantageous if

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Make Sure Your Revocable Living Trust Is Properly Funded

On November 24, 2020   /   Blog  
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Make Sure Your Revocable Living Trust Is Properly Funded

You’ve taken the time to plan for the financial well-being of your loved ones and yourself. You’ve created a customized estate plan to address your goals and concerns. Your plan includes one of the most powerful estate planning tools out there, the Revocable Living Trust, which allows your heirs to avoid probate upon your death and provide for management of your assets without interference from the court should you become disabled or otherwise incapacitated. All is well and good—unless you have not taken the steps necessary to fund your trust. Without proper funding, your trust is worth no more than the paper it is written on. It’s hard to believe, but many families take the time to create a comprehensive estate plan, together with a Revocable Living Trust, then fail to properly fund the trust. And even though a Will may provide that all assets pour over into your trust

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An Introduction to Special Needs Trusts

On November 17, 2020   /   Blog  
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An Introduction to Special Needs Trusts

For many families with a special needs child, a special needs trust is one of the most important components of the family’s overall estate plan. A properly designed and implemented special needs trust can provide a number of important benefits. Maximize quality of life while protecting eligibility for government assistance. A special needs trust allows you to provide funds that can help improve the quality of life for your special needs loved one without jeopardizing eligibility for necessary government assistance, such as Supplemental Security Income (SSI). Funds in the trust can be used for all of the following and more: Medical procedures or therapies not available through government assistance Supplemental nursing home care and private companion services Travel expenses Entertainment expenses such as movies, concerts or electronic equipment Fees for guardians and attorneys Other expenses, services or products not provided by a government assistance program Lower costs for healthcare services.

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Family Feuds—When Heirs Fight Over Assets With Sentimental Value

On November 10, 2020   /   Uncategorized  
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Family Feuds—When Heirs Fight Over Assets With Sentimental Value

When we think about heirs fighting over assets, it is the big ticket items that typically come to mind, such as the family home, investments, bank accounts and the like. However, it is often items of sentimental value—a mother’s necklace, for example, or a father’s watch—that cause the most contention. This is particularly true in the case of blended families. Worse, battles over sentimental assets often lead to hard feelings that can last for years or even permanently sever relationships between family members. How can you prevent your heirs from fighting over items with sentimental value? Many people believe that a statement in a will or trust that basically says ‘tangible personal property should be divided as my heirs see fit’ will solve the problem. However, this can lead to a host of potential conflicts. A better approach is to put specific items that you believe are of interest to

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Do You Need A Prenuptial Agreement?

On November 3, 2020   /   Blog  
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Do You Need A Prenuptial Agreement?

Okay, so you popped the big question, and he or she said yes! Whew, what a relief! Now there’s so much to do, so many plans to make: the guest list, the invitations, the reception, the band, the cake, the honeymoon…  the prenup? While it is hardly the most glamorous aspect of planning a wedding and a life together, many couples should at least discuss it. Why? A prenuptial agreement can protect you from financial loss in case your relationship breaks down—no small concern when you consider that half of all marriages end in divorce. Is a prenuptial agreement a good idea for you and your intended spouse? Probably, if any of the following scenarios apply: Either of you has children from a previous marriage You own a business or are involved in a family-run company Either of you has significant assets that you want to keep separate One of

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Planning Options For Parents of Troubled Adult Children

On October 27, 2020   /   Blog  
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Planning Options For Parents of Troubled Adult Children

For parents of adult children who suffer from mental illness or addiction to drugs or alcohol, the planning challenges combined with the strong emotions involved can seem overwhelming. The last thing you want to do is provide your loved one with assets that enable addiction or, in the case of mental illness, violate limitations on the number of assets a person can have and still qualify for government benefits. A major problem faced by parents of troubled adult children is admitting that their son or daughter is not simply “going through a phase” and will “come around” over time. Another is trying to picture the child’s future. When children suffer from addiction or a mental illness such as schizophrenia, it is very difficult to make any type of prediction about what they will need financially or the type and level of care that will be required down the road. Periods

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One of The Most Valuable Benefits Available to Veterans Is Also One of The Least Utilized

On October 20, 2020   /   Blog  
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One of The Most Valuable Benefits Available to Veterans Is Also One of The Least Utilized

Millions of our nation’s greatest heroes—veterans and their families who sacrificed so much in defense of our country—are eligible for government benefits but do not receive them. One benefit in particular, the Aid and Attendance Pension Program, can dramatically improve the lives of eligible veterans and their families. The Aid and Attendance Pension Program allows an eligible veteran to receive more than $27,000 a year for medical expenses and long-term care. The eligible veteran’s widowed spouse can receive over $14,500 a year. This benefit can be used to pay anyone, including family members, for in-home care. It can also be used to pay for assisted living and nursing home care. The Aid and Attendance Pension Program allows an eligible veteran, or the veteran’s widowed spouse, to remain independent for as long as possible, receive the care he or she needs and protect family assets against the high cost of long-term

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Should All of Your Children Receive Equal Inheritances

On October 13, 2020   /   Blog  
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Should All of Your Children Receive Equal Inheritances

If you have more than one child, you’ve probably wondered if you should leave each of your children the same amount in your will or trust. While this seems like the best approach in most situations, there are some instances where it might not be the wisest strategy, or even the fairest. Factors you might want to consider include: One child earns considerably more than your other children One child has several children of his or her own, while another child does not One of your children serves as your caregiver, runs errands or helps you in other ways much more frequently than your other children Sadly, you may have to ask yourself another, more troubling question: Has one of my children disappointed me so often, or behaved so irresponsibly in the past, that I feel like I must disinherit him or her entirely? In cases where one of your

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The Benefits of Health Savings Accounts

On October 6, 2020   /   Blog  
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The Benefits of Health Savings Accounts

Health savings accounts are tax-advantaged medical savings accounts available to people enrolled in high-deductible health plans (plans with deductibles of at least $1,350 for individuals and $2,700 for families). To qualify for a health savings account, your plan also needs to meet an out-of-pocket maximum below specified thresholds. In 2019, the out-of-pocket maximum for an HSA-qualified health plan must be less than $6,750 for individual coverage or $13,500 for family coverage. Money contributed to a health savings account is not subject to federal income tax at the time it is deposited. For 2019, people with individual medical coverage can deposit up to $3,500 in a health savings account while people with family plans can deposit up to $7,000. If you are age 55 and older, you can contribute an additional $1,000 to your account. In addition to being an excellent way to cover out-of-pocket medical expenses, health savings accounts provide

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Planning For High-Risk Professionals

On September 29, 2020   /   Blog  
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Planning For High-Risk Professionals

Every individual and family can benefit from estate planning. For some people, however, effective planning requires a higher level of asset protection. Certain professionals, such as physicians, attorneys, business owners and financial advisors, are far more likely to be sued than people working in other occupations. For example, just because a physician has medical malpractice insurance does not mean his or her personal assets are safe from a lawsuit. Many personal injury lawyers consider the entire value of the physician’s malpractice insurance to be the starting point in negotiations over damages, not the ultimate prize. If you work in a high-risk profession, contact us today to discuss your options. We can use a wide range of proven tools and strategies to protect your assets from lawsuits and other threats.

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