Retirement is something that is not going to be gift wrapped and handed to you when you reach a certain birthday. Unfortunately, there are those who buy into certain misconceptions. They believe that retirement is lying in wait, and they don't take any steps to proactively make financial preparations. We would like to take a look at three of these misconceptions here. 1.) Health care is a given because I'm going to qualify for Medicare coverage. Medicare is not entirely comprehensive; it is …
DIY Wills & Living Trusts: Understand the Dangers
Wills and revocable living trusts are two of the most commonly utilized estate planning vehicles of asset transfer. The best choice for a given individual will vary on a case-by-case basis. There are in fact other ways to transfer assets, and some of these may be preferable depending on the circumstances. There are those who don't seek out any professional advice. They stumble upon websites on the Internet that sell do-it-yourself legal documents including wills and living trusts. These DIY …
Understand These Important Medicaid Details
Medicaid seems to be irrelevant to most Americans throughout their lives. You may have health insurance through your employer while you are working. Because you paid into the program sufficiently while you were traversing your career path you will ultimately be qualified for Medicare as a retiree. What you have to understand is that Medicare does not pay for long-term care. Medicaid will help if you can qualify. You may be surprised to hear that the majority of elders who are residing in …
Prenuptial Agreements & Remarriage Statistics
When you look at the matter of remarriage and prenuptial agreements from a fair-minded and practical standpoint rather than a romantic one you come away with a particular impression. We have all heard the statistic that is tossed about regarding the divorce rate. It is said that about 50% of marriages end in divorce. Different studies provide slightly different figures, but they are all in this vicinity. When it comes to getting married after you have already been divorced the statistical …
Low Rates Make GRATs Attractive
The Section 7520 rate is low at the present time, and this makes the zeroed out GRAT strategy attractive to many people seeking avenues that provide tax efficiency. In the realm of estate planning a GRAT is a grantor retained annuity trust. You as the grantor name a beneficiary, and you receive annuity payments from the trust throughout its term. The IRS adds anticipated interest earnings to the trust's value using the Section 7520 rate. As this is being written (July of 2013) the Section …
NY Daily News: Taxes to Slash Gandolfini Estate
The New York Daily News is reporting that an estate planning attorney that they have spoken with about the subject is calling the estate plan of the deceased New York-based actor James Gandolfini a "disaster." If you are in possession of a significant amount of wealth you must understand the potential for asset erosion that exists in the form of estate taxes. Many states do not have an estate tax of their own, but in New York we do in fact have a state-level estate tax. The exclusion is $1 …
Estate & Gift Tax FAQS
The resources that you want to pass along to your loved ones can be significantly eroded by estate and gift taxes. In this post we will answer some of the more frequently asked questions about these levies. I've heard that the federal estate tax is only imposed on the rich. Is this true? The answer to this question is going to depend on the definition that you use for the word "rich." It is true that most people are exempt from the tax. There is a $5.25 million federal estate tax exclusion. …
Marilyn Monroe and Jim Morrison: Two Estate Plans Gone Awry
Marilyn Monroe and Jim Morrison had something in common when it comes to estate planning. Each of them wanted their resources to go to certain people. In the end, their assets wound up in entirely different hands. In this post we will take a look at the estate plans of these two deceased entertainment icons. The Monroe/Strasberg Connection Marilyn Monroe did not have mentally competent close living blood relatives. She never had a relationship with her father, and her mother spent much of her …
Useful Elder Law and Retirement Planning Links
Elder law and retirement planning go hand-in-hand. Making sure the you have the financial underpinning to enjoy your retirement years to the fullest is important. But then there is the elder law issue of long-term care and the expenses that are potentially incurred. Medicare doesn't pay for an extended stay in a nursing home or an assisted-living community. If you combine the average length of stay with the average cost of a year in a nursing home in New York you're looking at a figure …
Avoiding Probate With a Revocable Living Trust
Revocable living trusts are widely used to enable probate avoidance. Let's start off by explaining what probate is and why someone may want to arrange for asset transfers outside of probate. In the state of New York the process of probate takes place under the supervision of the Surrogate's Court. Contrary to the way it is depicted in the movies, a will is not something that is just read among family members. It must be deemed valid by the court. Everyone has heard of will challenges, and …
Have You Considered These Estate Planning Details?
Estate planning is not a one-size-fits-all endeavor. This is one of the major reasons why you should probably steer clear of do-it-yourself estate planning notions that you see advertised on the Internet. There are a lot of things to consider, and a lot of ways to go about planning your estate. You have to analyze all the details and understand how to proceed given your unique circumstances. Let's look at some of the details that some people may not consider. Probate You may think that your …
Support Charities, Gain Tax Efficiency
Supporting charities can provide tax efficiency, so you can do something to make the world a better place while you simultaneously mitigate your tax burden. Estate tax efficiency is important for people who have accumulated significant stores of wealth. There is a federal estate tax in place, and here in the state of New York we also have a New York state estate tax. The dividing line that separates those who must pay the tax from those who are exempt is the estate tax exclusion. There are …
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