If you were entering into a contract of some kind involving a lot of money you would probably not take any shortcuts. Yet, many people look for shortcuts when it comes to estate planning. There are certain ways that you can arrange for assets to wind up in the hands of someone that you will be leaving behind quite simply. One of these would be to make an individual the co-owner of your property. It could be your place of residence, your bank accounts, brokerage accounts, etc. When you do this …
Medicaid May Suddenly Become Relevant
People who have worked throughout their lives making good livings may feel as though Medicaid is utterly irrelevant to them. They have health insurance through their jobs while they are working, and they paid into the Medicare program so they will have health care coverage during retirement. While the above may seem perfectly logical a significant percentage of people wind up applying for Medicaid when they reach an advanced age. This is because of the fact that Medicare will not pay for an …
What Happens If I Become Incapacitated?
It can be hard to relate to a time when you may be unable to make your own decisions due to incapacity. Be that as it may, a very significant percentage of our nation's elders do in fact become incapacitated. In many cases guardianship proceedings are initiated under these circumstances. Guardianship If interested parties come to the conclusion that you are no longer capable of making sound decisions they could approach the court requesting a guardianship hearing. This could result in the …
When Should I Use My Gift/Estate Tax Exclusion?
High net worth individuals must be concerned about taxes on large asset transfers. We have an estate tax in the United States, and there is also a gift tax. In the state of New York there is an estate tax on the state level as well, but we will discuss that in a different post. The gift tax and the estate tax are unified. The unified exclusion or credit is $5.25 million dollars. This is the amount of money that you can bequeath, or gift to others while you are alive, before these transfers …
Legacy Wealth Planning in Long Island NY: How It Differs from Traditional Estate Planning
Estate planning is a general term. The exact anatomy of an actual estate plan is not going to be identical for everyone. There are those who need a traditional estate plan because they have relatively basic concerns. On the other hand, people who are in more complicated positions will benefit from legacy wealth planning. Financial Position To a large extent, those who are in possession of a significant store of wealth will need to consider legacy wealth planning. Those who are of more modest …
Can I Leave a Tax-Free Inheritance to My Spouse?
You pay taxes throughout your life, but the event of your death can also be a taxable one if you have been very successful financially. There is an estate tax in place on the federal level, and it can be a major factor when you are engaged in the process of inheritance planning. The federal estate tax can erode the wealth that you are leaving behind to your heirs considerably. At the time of this writing in 2013, the maximum rate of the tax is 40 percent. The amount of the federal estate tax …
What Does a Power of Attorney Accomplish?
A power of attorney is a legally binding document that is used by a grantor or principal to empower an agent or attorney-in-fact to act on behalf of the principal. A general power of attorney is used to give someone the ability to act in your behalf over a wide range of purposes. There is no particular expiration date. Once you give someone a general power of attorney he or she could act for you indefinitely, and the power would go into place immediately. Another type of power of attorney …
Estate Planning in Smithtown NY: Taxes Are Only a Partial Concern
Estate planning definitely involves helping certain people gain estate tax efficiency. The federal estate tax carries a $5.25 million exclusion in 2013, and the top rate is forty percent. A forty percent death tax can certainly erode your assets considerably as they are being passed on to the next generation. Here in the state of New York we also have a state-level estate tax to contend with, and this exclusion is much lower at just $1 million. The above having been stated, estate taxes are …
According to Survey Majority Without Living Will
A living will is not something that is used to arrange for the eventual transfer of your financial holdings to your heirs. This is an advance directive for health care that serves a purpose within the incapacity component of a comprehensive estate plan. Medical technologies can sometimes keep people alive even if there is no hope of recovery. The removal of things like feeding tubes and ventilators could result in the death of the individual receiving these life-sustaining measures. How you …
Steve McNair Estate: Lessons Learned
The Steve McNair estate was a tragedy because of his untimely passing and the unfortunate events that loomed as a result. He was young, healthy, and wealthy, but he did not predict that he would become the victim of murder. It's an unfortunate string of events when it comes to people under 40-years-old. They feel infallable and that they don't need an estate plan. No matter your age, unfortunate circumstances and accidents do happen. Below, we explain what happend with the Steve McNair …
Revocable Living Trust in Smithtown NY: Does It Provide Asset Protection?
There are various different legal devices that are used to arrange for the transfer of financial assets after someone passes away. In New York, one option that is quite popular is the revocable living trust. With a revocable living trust in Smithtown NY you retain incidents of ownership, and in certain ways this is a benefit. Because the trust is in fact revocable you can dissolve it and go forward with the assets that had been in the trust in any way that you choose. When you create a …
What Is Estate Planning in Smithtown New York?
The topic of estate planning in Smithtown New York is mystifying to some people. They simply don't know what it entails. In this post we would like to provide some basic information for those who may have no idea where to begin. Transferring Assets Part of the equation when you are planning your estate is the future transfer of your financial assets to your heirs. If you were to pass away without an estate plan your assets would be distributed to your closest blood relative or relatives under …
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