You have to be very discerning when you are leaving assets to your loved ones. There are different methods that you can utilize, and the optimal choice will vary on a case-by-case basis. With this in mind, we will look at the value of third party special needs trusts in this post. Government Benefits If you have a family member with special needs, you have to take government benefit eligibility into consideration. Many people with disabilities are enrolled in the Medicaid program. This is …
What Is a Living Trust Successor Trustee?
You should carefully explore all of your options when you plan your estate. This is one of the reasons why personalized attention is so valuable. When you discuss everything with a licensed estate planning attorney, you can ask questions and gain a full understanding of the possibilities that are out there. With this in mind, we will look at living trusts and the role of the successor trustee in this post. Revocable Living Trusts Some people think that trusts are only used by wealthy …
How Does a Medicaid Trust Work?
You should know some things about Medicare and Medicaid when you are looking ahead toward your retirement years. The majority of seniors are going to qualify for Medicare, because most people pay into the program while they are working and paying taxes. You can gain four retirement credits each year, and in 2014 you gain one credit for every $1200 you earn. Once you have 40 credits, you will qualify for Medicare when you reach the age of 65. These requirements are quite modest, so the majority …
Is There a Medicaid Asset Limit?
There is a very significant gap when it comes to Medicare coverage. Most seniors will qualify for Medicare when they reach the age of 65, but Medicare will not pay for long-term care. This is the type of care that you would receive if you eventually need help with your activities of daily living. Long-term care is looked upon as custodial care rather than medical or convalescent care, so Medicare will not cover these expenses. What is the solution? For many people, the long-term care solution …
Why Would I Want to Avoid Probate?
The ultimate estate planning goal is the facilitation of effective postmortem asset transfers, but there is more to this than the creation of a document or documents. Estate administration is something that people sometimes overlook, but it is an important part of the estate planning process. There is a human element, and there can be court involvement under some circumstances. The Probate Process You may assume that a last will is the most efficient and effective asset transfer vehicle. In …
Estate Planning FAQs: Can a Trust Protect Family Wealth?
People who have accomplished their financial objectives have reached a plateau, but there is another level of security to take into consideration. You have to protect that wealth for the benefit of your loved ones, and there are certain types of trusts that can be utilized to satisfy this aim. Estate Taxes Before we look at wealth preservation trusts, we should explain the lay of the land when it comes to death taxes. There is a federal estate tax that people in all 50 states must contend …
What Is an Irrevocable Life Insurance Trust?
In this post we are going to look at the value of irrevocable life insurance trusts. However, before we examine these trusts, we must provide some background information. Federal Estate Tax Exposure An irrevocable life insurance trust can be useful if you are exposed to the federal estate tax. When you are planning your estate, you should evaluate all of your taxable resources so that you know if you do in fact have any estate tax liability. During the current calendar year, the amount …
What Are Advance Directives for Health Care?
You should think comprehensively when you are devising a plan for aging. Clearly, you want to leave behind a suitable legacy after you are gone. At the same time, you should prepare for the eventualities of aging. This will involve the execution of advance directives for health care. People often become unable to communicate medical decisions during the end of their lives. To account for this, you can state your wishes when you create your incapacity plan. An incapacity plan will include …
Are There Different Types of Special Needs Trusts?
Before we look at the distinctions between the different types of special needs trusts, we should explain the value of these legal devices. People who are disabled are clearly going to need health insurance. Care and treatment can cost millions of dollars over the course of a lifetime under some circumstances, so coverage is absolutely essential. Most people get health insurance through their jobs, and many people who are disabled cannot work and earn income. They don't have health insurance …
When Is an Estate Tax Return Due?
If you have been able to accumulate a significant store of wealth, you have to concern yourself with death taxes. We have a federal estate tax that can put quite a dent in your financial legacy. There is a federal estate tax credit or exclusion. This is the amount that can be transferred tax-free. Asset transfers that exceed this amount are potentially subject to the estate tax. The federal estate tax exclusion was set at $5 million for the 2011 calendar year. Each year since then there …
How Should I Choose My Executor?
Estate administration is something that is overlooked by many people, but there is certainly a human element that you should carefully consider when you are devising your estate plan. You will use legal documents to state your wishes, but an estate administrator must take action after your passing to bring these wishes to fruition. If you use a last will as your primary vehicle of asset transfer, this person will be the executor of the estate. This position is not an honorary or ceremonial …
What Happens to a Revocable Living Trust When One Spouse Dies?
A revocable living trust can be very useful if you want to facilitate efficient asset transfers to your loved ones. When you use a revocable living trust, the asset distributions that are received by the beneficiaries after your passing are not subject to the probate process. Probate is a legal process, and it provides certain protections to interested parties. However, it can be time-consuming and expensive, so people often take steps to avoid it. Married Couples and Revocable Living …
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