One of the reasons why it is important to discuss your unique situation with an attorney is because there is no one-size-fits-all estate plan that is right for everyone. This being stated, there is a basic framework that would apply to every plan in a general sense. Let’s look at the anatomy of an estate plan so you can go forward with some foundational knowledge. Asset Transfer Vehicle The fact that there will be an asset transfer vehicle at the core of your estate plan is pretty …
Inheritance Safeguards for Spendthrifts
It can be disconcerting when you have someone that is not a good money manager on your inheritance list. This person may have come to you seeking financial assistance on multiple occasions over the years. There is no doubt that you want to leave them an inheritance, but what if they burn through it too quickly? They may have nowhere to turn when the going gets rough. Fortunately, there is a relatively simple solution that you can utilize if you are in this position, and we will look at it …
Be Prepared to Update Your Estate Plan
Because so many people procrastinate before they put an estate plan in place, when they finally take action, they tuck the documents away in a lock box somewhere. They forget about the whole matter, because they feel as though it is behind them forever. In reality, this is a big mistake. Various different events can come down the pike that will trigger the need for estate plan updates, and we will look at some of them here. Changes in Marital Status Unfortunately, a significant percentage …
Consider a Self-Settled Asset Protection Trust
There are people that have concerns about possible creditor claims that may present themselves in the future. The potential difficulties can be related to debts or lawsuit judgments or settlements. Individuals that are in certain high-risk professions often fall into this category. These would include doctors, attorneys, real estate developers, architects, and some others. If you would like to protect your assets from future claimants, there is a legal device that may be the right choice …
Estate Recovery and Caregiver Children
Most senior citizens will require help with their activities of daily living at some point in time. About 35 percent of them will eventually reside in nursing homes, and these facilities are very expensive. On Long Island, you can expect to pay about $170,000 for a year in a nursing home right now, and costs have been rising year after year. A lot of people hear this statistic and don’t think much of it because they know that they will qualify for Medicare when they reach the age of 65. It …
A Living Trust Can Be the Ideal Estate Plan Centerpiece
Far too many people assume that a will is the right estate planning document to use unless you have complicated holdings or unusual objectives. In fact, the revocable living trust is the ideal estate planning centerpiece for a wide range of people, and we will look at the benefits here. Streamlined Estate Administration You probably want your loved ones to receive their inheritances in a timely manner after you pass away. After all, the assets were yours, why should they be stuck in limbo for …
Multiple Wills Can Be Included in Your Estate Plan
Many people are not aware of the fact that there are a number of wills that can be used in the field of estate planning. When you have an understanding of all the tools that are available, you can make fully informed choices. With this in mind, we will look at four different wills in this post. Simple Will The one will that everyone has heard of before is the simple will. This type of will is used to state your wishes with regard to the way you want your assets to be distributed after you are …
When Is a Trust Better Than a Will?
You should explore your options when you are planning your estate, because there are many tools in the estate planning toolkit. There are a number of situations that would call for a trust of some kind instead of a will, and we will look at some of them in this post. Estate Tax Efficiency There is a federal estate tax that can take a big bite out of your legacy because it carries a 40 percent top rate. We also have a state-level estate tax to contend with as New Yorkers, and it has a graduated …
Your Plan Should Include Advance Health Care Directives
A lot of people think that estate planning is strictly confined to the facilitation of postmortem asset transfers. Without question, this is the most important consideration, but a well-constructed estate plan will also address the medical eventualities that you may face as an elder. Life Support Utilization This is not a very pleasant subject to contemplate, but it is important to confront these matters head-on. Some patients with serious medical conditions become unable to communicate …
When Is an Irrevocable Trust Used?
There are many different tools in the estate planning toolkit, and the right course of action will depend upon the circumstances. This is why it is very important to sit down and have a meaningful conversation with an estate planning attorney when you get serious about the process. When you do this, you may find out that you should use an asset transfer vehicle that you have never heard of before. Generally speaking, there are two different types of trusts: revocable trusts, and …
Secure Act 2.0 Has Been Introduced
We recently shared a post about individual retirement accounts and inheritance planning. There has been a new development, and we will share it here to keep you up-to-date. But first, we will provide a review for those that may have missed the related entry. Traditional Individual Retirement Accounts A traditional IRA is funded with after-tax earnings, so you get tax breaks along the way. On the other side of the coin, when you make withdrawals from the account, they are subject to …
Estate Administration Basics
When you get start to think about estate planning in earnest, you are naturally going to consider how you want to slice up the pie as it were. After you have made your decisions, you will be executing a will or a trust to direct the asset transfers. You should understand the estate administration process before you make a decisions with regard to the asset transfer vehicle. The choices that you make will impact the inheritance distributions, and you should understand the tasks that must be …
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