When you achieve your financial goals, you can breathe a sigh of relief and enjoy your good fortune. However, there is one negative that goes along with a high level of financial success. Estate taxes can significantly impact your legacy. There is a federal estate tax that people all around the country have to contend with, and some states have state-level estate taxes. Fortunately for us, New Jersey is not among them. In this post, we will look at the qualified domestic trust (QDOT), … [Read more...] about Qualified Domestic Trust: Estate Tax Efficiency for Non-Citizen Spouses
Estate Planning
Take Control in Advance With These Incapacity Planning Steps
You will invariably think about the way your assets will be transferred after you pass away when the subject of estate planning is mentioned. This being stated, your plan should also address some unpleasant realities that can go along with the aging process that necessitate the need for proactive incapacity planning. Cognitive Impairment Everyone has heard of Alzheimer’s disease, but its widespread nature is surprising to many people. This disease strikes over 30 percent of the oldest old, and … [Read more...] about Take Control in Advance With These Incapacity Planning Steps
How Much Will My Heirs Pay in Inheritance Tax?
There are many nuances to the tax laws in different states as they apply to inheritances. Before we look at the inheritance tax question per se, we will share some information about the federal transfer taxes, and then we will drill down. Federal Gift and Estate Tax On the federal level, there is an estate tax that most people do not pay, because it carries a $13.61 million exclusion. The only portion of an estate that would be subject to this tax is the portion that exceeds this figure. Every … [Read more...] about How Much Will My Heirs Pay in Inheritance Tax?
Medicaid Waiver, Income-Only Trust Can Facilitate Aging in Place
As seniors plan for their future, the concept of aging in place – remaining in one's own home while receiving necessary care – is increasingly popular. This guide explores the use of a Medicaid Home and Community-Based Services (HCBS) waiver and income-only Medicaid trust in facilitating this choice. Why is this necessary? Unfortunately, Medicare does not cover long-term care in or out of the home, but Medicaid will pay these expenses for beneficiaries. We'll use case studies to illustrate … [Read more...] about Medicaid Waiver, Income-Only Trust Can Facilitate Aging in Place
Tailoring Estate Distributions: Logical Frameworks for Your Unique Situation
When planning your estate, one of the most critical steps is determining estate distributions. This decision is deeply personal and varies significantly depending on your situation and relationships. Understanding different logical frameworks for asset distribution can help you make choices that reflect your values and intentions. Considering Family Dynamics and Relationships Family structure plays a crucial role in asset distribution. If you have a spouse and children, you will prioritize … [Read more...] about Tailoring Estate Distributions: Logical Frameworks for Your Unique Situation
Life Insurance in Estate Planning: More Than Just Income Replacement
Life insurance, often viewed simply as a means of income replacement, plays a multifaceted role in comprehensive estate planning. Its versatility extends to facilitating buy-sell agreements, balancing inheritances among heirs, and even managing estate taxes for high-net-worth individuals through irrevocable life insurance trusts (ILITs). Understanding these diverse applications can significantly enhance estate planning strategies. Income Replacement: The Foundation At its core, life … [Read more...] about Life Insurance in Estate Planning: More Than Just Income Replacement
Estate Planning for Young Adults: A Guide to Future Security
Estate planning often evokes images of graying baby boomers and sprawling portfolios. But the truth is, estate planning is crucial for young adults too. While you might not own a mansion or have amassed significant wealth, unforeseen circumstances can strike anyone at any age. Having an estate plan in place ensures your wishes are respected and your loved ones are protected, regardless of your life stage. Why Is Estate Planning Important for Young Adults? Many young adults mistakenly … [Read more...] about Estate Planning for Young Adults: A Guide to Future Security
Capital Gains Taxes on Inheritances and the Stepped-Up Basis
You should have a firm understanding of the way taxes can impact the inheritances that you will be leaving to your loved ones. We will provide a quick overview first, and we will then focus on the capital gains tax and the stepped-up basis. Income Taxes A lot of people assume that you would have to report an inheritance as income when you file your state and local tax returns. In reality, this is not the case at all. Inheritances are not considered to be taxable income, and this includes … [Read more...] about Capital Gains Taxes on Inheritances and the Stepped-Up Basis
Asset Protection and Succession Planning for Small Business Owners
For small business owners, safeguarding the business's assets is a crucial aspect of long-term success. Asset protection strategies ensure that your hard-earned business assets are secure from potential threats like lawsuits, creditors, or unforeseen circumstances. Effective estate planning plays a pivotal role in this protection. Understanding the Role of Estate Planning in Business Succession Estate planning for small business owners isn't just about personal assets; it also encompasses … [Read more...] about Asset Protection and Succession Planning for Small Business Owners
Estate Planning for Children: 529 Plans, Trusts, and UGMA/UTMA Accounts
Estate planning isn't just about securing your own future; it's about ensuring the well-being of your children and grandchildren. This post dives into practical tools to achieve this: UGMA and UTMA accounts, 529 plans, and various trusts, including the supplemental needs trust. Each of these options serves a unique purpose in your estate planning toolkit. Understanding UGMA and UTMA Accounts The Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA) accounts are … [Read more...] about Estate Planning for Children: 529 Plans, Trusts, and UGMA/UTMA Accounts
