People with special needs do not only need lots of hands-on care. They also need intelligent strategies for an appropriate party to manage the money available for their care.
When aging and chronic health concerns are involved, there is no easy answer to estate planning questions. If the ability to perform daily tasks becomes badly compromised, long-term care may be necessary. But as we discussed in our March 13 post, the sticker shock that comes from pondering the price of long-term care insurance is very real.
One of the themes of this blog is that estate planning is not a one-and-done activity. To be sure, for a married couple it may seem straightforward to simply leave everything to each other. After all, that is what a tenancy by the entirety is intended to do for jointly held property. And a will can pass along other property, often via a trust.
Generational transfers of wealth do not only go one way. To be sure, the usual pattern is parents passing along assets to children and other heirs. This is done through wills, trusts, gifts and other estate planning devices.
In 2012, Americans could give up to $5.2 million worth of gifts before being taxed 35 percent on additional gifts. Next year, that amount drops to $1 million and gift-givers may face a tax rate of up to 55 percent. While it is possible that Congress will extend the tax breaks, there is no time like the present to start giving.
Estate planning is the process of legally designating who will receive your money and property when you die. Traditionally, women may not have been as actively involved in estate planning, but in current times every woman should meet with an experienced estate planning attorney to discuss her situation.
If you're considering taking advantage of the gift tax exemption as part of your estate planning, you should be aware that the current $5.12 million break might expire at the end of the year.
As Virginia residents know, death is a part of life that everyone must deal with at some point. After death, everyone has an estate that loved ones must manage. Having an effective estate plan can aid family and friends when the time comes.
Sometimes people try to settle their financial matters themselves before passing away. Although this do-it-yourself estate planning is performed dutifully and with the best of intentions, it may actually lead to complications for the fiduciaries or beneficiaries later if not done right. One major cause for concern is where to establish trusts, because each state treats fiduciary income taxes on certain trusts differently.
According to experts, longevity and other changes that the modern world has brought to families are causing an increase in feuds among family members when it comes time to engage in estate planning. With changes in family dynamics and loved ones living longer, some potential heirs expecting an inheritance are in for a rude awakening.