You may wonder why you would ever want to qualify for Medicaid if you are going to be eligible for Medicare coverage when you reach the age of 65. After all, these are both health insurance programs. If you have Medicare coverage, you would not need Medicaid, and you would not qualify anyway because you will retire with resources. While the above is true on one level, many senior citizens do attempt to qualify for Medicaid. This is because of the fact that Medicaid will pay for living …
Estate Planning: What Do I Need to Know?
In this blog post, we will provide some food for thought that may compel you to educate yourself about the value of estate planning. The Age Factor You may assume that you don't need an estate plan if you are a relatively young adult. In reality, many young adults have huge responsibilities to others, especially young parents. While it is true that people generally don't pass away when they are in their thirties or forties, we all know that it does happen. If you fail to take action, you are …
What Are the Gift Tax Exemptions?
When you hear about the existence of the federal estate tax, you may assume that you can simply give gifts to avoid this death tax. While this makes sense on the surface, the powers that be decided to close that loophole many years ago through the enactment of the gift tax. The gift tax and the estate tax are unified under the tax code. Gift Tax Exemptions There are some gift tax exemptions that can be used to give tax-free gifts. The exemptions are called exclusions in formal tax …
Do I Need Anything in Addition to My Will?
A last will is a legal document that can be used to facilitate asset transfers after you pass away. If you create a last will, you have covered one of your bases, but there are some other things to take into consideration when you are planning your estate. End-of-Life Issues Taking care of the things that will happen after you pass away will be part of the process, but you should also address end-of-life issues. Elders often become incapacitated, and you should take action to prepare for …
Can I Protect My Inheritance With a Special Needs Trust?
People with disabilities are often unable to earn much income on their own. As a result, they have limited resources, and they qualify for need-based government programs. Medicaid is a health insurance program for people with financial need, and Supplemental Security Income is a source of modest financial support that can be used to pay for basic needs. If a person with a disability who is enrolled in these programs was to receive a direct inheritance, this would result in an improved …
Elder Law FAQs: How Common Is Alzheimer’s Disease?
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Who Is Competent to Create a Last Will?
A last will is not something that is only passed around among certain family members. When you use a last will to state your wishes regarding the distribution of your personally held property, the executor that you name in the will must admit the will to probate. During this process, there is a proving of the will. The court examines the will to make sure that it is legally valid. Competency Requirements Any adult who is of sound mind is technically qualified to create a last will. The …
How Do I Identify the Right Estate Planning Attorney?
If you have not put an estate plan in place, you are taking a very big risk, and your family members are the ones who will pay the price if you wait until it is too late. When you plan your estate, you make sure that your loved ones will be provided for monetarily after you pass away, but you can also make sure that you are remembered in other ways. Statistics show that most people have not executed all of the appropriate estate planning documents, so this lack of action is a societal …
Take Our Estate Planning IQ Quiz
If you ask the typical layperson what he or she knows about estate planning in many cases the answer is going to be "Not a whole lot." Everyone is aware of the existence of a last will as a way to express your wishes regarding the distribution of your assets after you pass away. However, aside from that most people have not taken the time to learn much about estate planning. However, when you do understand the facts you see a different picture. Simply drawing up a last will stating who …
State-Level Estate Tax Exclusion Increase Kicks in Next Month
Surveys are conducted periodically, and they consistently find that most American adults are not appropriately prepared from an estate planning standpoint. One of the reasons for this inaction is the notion that estate planning boils down to the execution of a last will. You can do that when you are a senior citizen, right? This is a gross oversimplification on numerous different levels. First of all, people of all ages pass away, and every responsible adult should have an estate …
Why Is Retirement Planning Important?
The existence of certain institutions can lead you to overconfidence when it comes to retirement. You may feel as though retirement planning is really not important, because there is already a system in place that will automatically provide you with a comfortable retirement. Retirement Benefits When you pay FICA taxes, you earn retirement credits. You can obtain as many as four credits in a calendar year, and you obtain eligibility for Medicare and Social Security when you accumulate at least …
What Is a Grantor Retained Annuity Trust?
A grantor retained annuity trust can be part of your estate plan if you are exposed to the federal estate tax. In this post we will look at the "zeroed out" grantor retained annuity trust strategy. First, we must provide some background about the federal estate tax parameters. Exclusion and Maximum Rate At the end of 2010 a tax relief act was passed that set the estate tax exclusion at $5 million in 2011. This act called for annual adjustments to account for inflation. A couple of years later, …
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