Death taxes can be a factor for you if you are in a particularly strong financial position. There is a federal estate tax that everyone around the country must contend with, and there are some states that also impose state-level estate taxes. We practice law in the state of New York, and there is a state-level estate tax in our state. There is an unlimited marital deduction that allows you to transfer unlimited assets to your spouse free of taxation, as long as your spouse is an American …
Do Trusts Provide Tax Efficiency?
You have certainly heard of the legal device called a last will or last will and testament, and it is likely that you are also aware of the existence of trusts. Many people assume that all trusts are created equally, but in reality, different trusts serve very different purposes. Let's look at some of the details. Revocable Living Trusts A revocable living trust is a type of trust that can be useful if you want to facilitate timely asset transfers to your loved ones. The transfers would …
What Are the Disadvantages of a Power of Attorney?
A power of attorney is a legal instrument that is used to name someone else to act on your behalf. Our firm is focused on estate planning and elder law matters. Within our realm of the law, durable powers of attorney are often utilized. You would use a durable power of attorney to name someone to act on your behalf in the event of your incapacitation. This could seem like an unnecessary step to take, but when you look at the facts, you see that incapacity is quite common among …
Why Would I Use a Trust Instead of a Will?
If you have not looked into the subject thoroughly, you may automatically assume you should use a last will as an estate planning device. Many people do go this route, but you should be aware of the fact that you have other options. A last will is not going to be the best choice in many instances. Let's look at some of the reasons why you may want to use a trust instead of a will. Probate Avoidance A last will must be admitted to probate. This is the legal process of estate …
Who Needs a Will?
Estate planning is important for every responsible adult. People who are younger sometimes do not see the need, but anything can happen to anyone at any time, and it is important to be prepared. At minimum, you should have a last will stating your final wishes, even if you are a relatively young adult. At the same time, a last will is not the only vehicle of asset transfer that can be utilized, and it is not always the best choice. There are a number of different trusts that can accomplish …
Elder Law FAQs: Does the Nursing Home Get Half of My Assets?
When you are planning ahead for your elder years, you should have a thorough understanding of the lay of the land when it comes to nursing home care. There is inaccurate and incomplete information out there, and sometimes people come away with mistaken impressions. If you discuss everything with an elder law attorney, you can go forward in a fully informed manner. With the above in mind, let's look at a commonly asked question that stems from a misconception. Nursing Home Care Nursing homes …
Retirement Planning FAQs: Will Medicare Cover All of My Medical Expenses?
Retirement planning involves careful long-term calculations. You do not have a crystal ball, so there is no way that you can anticipate every expense that may come your way during your senior years. At the same time, you can gain a thorough understanding of the benefits that you will have, and you can make projections. When it comes to health care, you will qualify for Medicare coverage when you reach the age of 65 if you have paid into the program sufficiently throughout your life. Just about …
Can an IRA Be Part of My Estate Plan?
If you have an individual retirement account (IRA), you may have every intention of using the assets in the account to fund your senior years. There is certainly nothing wrong with this, but if you are so inclined, you may be able to use your IRA for estate planning purposes. There are essentially two different types of individual retirement accounts that are widely utilized: traditional individual retirement accounts, and Roth IRAs. With a traditional IRA, you can start to take penalty …
What Is Nursing Home Asset Protection?
If you are going to qualify for Medicare, you may wonder why nursing home asset protection should be on your radar. Perhaps it is natural to assume that Medicare will take care of all of your health care needs during your senior years, but in fact, Medicare does not pay for long-term care. Help with your activities of daily living is considered to be custodial care. Medicare will pay for up to 100 days of convalescent care after surgery, but it will not pay for living assistance. Long-term …
What Is the Difference Between a Living Will and a Living Trust?
Legal matters can be confusing, and this is especially true when documents have similar sounding names. You hear a lot of things about estate planning, and you hear many terms tossed about, so you could come away with misconceptions. We endeavor to clear things up on our blog from time to time, and with this in mind, we will look at the difference between living wills and living trusts in this post. Life Support Preferences There are different types of wills used in the field of estate …
Budget Proposal Would Expand Federal Estate Tax
The recent State of the Union address that was delivered by the president included some insight into the budget that he was going to propose for 2016. This so-called "blue book" has been released, and we now know that an expansion to the federal estate tax is included in the budget proposal. Before we explain the proposed change, we should look back a few years so that you can understand the current state of affairs. At the end of 2010, a tax relief measure was passed, and it established a $5 …
When Does a Living Trust Terminate?
A revocable living trust can be a very viable solution for a wide range of people who have enjoyed some modicum of financial success. You receive a number of different benefits when you utilize this type of trust as a vehicle of asset transfer. Efficient Control of Resources When you create a revocable living trust, you name a trustee and a beneficiary, or multiple beneficiaries. The trustee is the trust administrator, and the beneficiary is the individual who can receive monetary …
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