Posts Tagged Estate Planning

Family Feuds—When Heirs Fight Over Assets With Sentimental Value

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?

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

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

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

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

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

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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Aggressive Moves You Can Make In Your Forties To Reach Long-Term Financial Goals, Continued.

Aggressive Moves You Can Make In Your Forties To Reach Long-Term Financial Goals, Continued.

Here are three additional ways people in their forties can maximize their retirement savings. Don’t skimp on your retirement savings to pay for your children’s college education. Why? Simple. You or your children can borrow money to pay for college, but you cannot borrow money to pay for retirement. In addition, when investing for retirement, time is indeed money. The more you can invest early on, the greater the likelihood that you’ll have more money when you retire. Also, working longer, say well into your sixties, may not be an option. Corporate downsizing and/or health problems could limit how long you can work. The fact is, saving more than you need for retirement will allow you to help pay off your children’s student loans when you do retire. Make the most of what your employer is offering. Your employer may well be offering more than a paycheck. For example, some

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Aggressive Moves You Can Make In Your Forties To Read Long-Term Financial Goals

Aggressive Moves You Can Make In Your Forties To Read Long-Term Financial Goals

An article in Kiplinger discussed an aggressive approach to financial planning in your forties. Let’s take a look at some of the highlights. Make saving for retirement a priority and beef up your investments. You’ll want to start by making the largest possible contributions to your employer’s retirement plan. At the very least, you should put enough into your company’s retirement plan to take full advantage of its contribution matching program. A word of caution—if you put all your retirement savings into tax-deferred accounts, you might get hit hard by taxes when you retire. That’s because withdrawals from 401 (k) plans and traditional IRAs are taxed at the retiree’s ordinary income tax rate. This makes contributing to a Roth IRA a good idea. Your contributions are after-tax, but your withdrawals are tax-free as long as you are over 59½ and have owned the Roth IRA for five years or more.

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ATM Skimming – Yes, It Could Happen To You

ATM Skimming – Yes, It Could Happen To You

It’s all so convenient. You go to the gas station, insert your debit card into the reader at the pump, fill up your car, and you’re on your way. Or when you need some pocket money, you simply go to the nearest Automated Teller Machine (ATM), swipe your card, take your cash and go. Thanks to modern technology, there’s no longer any need to waste time waiting in long lines at gas stations or banks. Thieves also love the convenience of gas station card readers and ATMs. They’ve come up with some ingenious ways to use them to gain access to your bank account information, and therefore, your hard-earned money. It’s called ATM skimming, and the crime requires just two easily obtained components. The first is the skimmer itself. This is a counterfeit card reader, which is placed over the ATM’s actual card slot. When you swipe your card through

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