After much anticipation, the Treasury Department and the Internal Revenue Service (IRS) has issued final regulations relating to the 10-year required minimum distribution (RMD) rule for people who inherit individual retirement account (IRA) assets. The newly published guidelines generally reflect what the IRS proposed in 2022, but they bring clarity to several key questions about the rule,
What is Medicaid? Nursing homes in Pennsylvania typically cost $150,000 - $180,000 a year. Medicare and health insurance don’t pay. Medicaid does, without any dollar caps or time limits. But you must first go broke in order to qualify and, if you’re married, your spouse could forfeit a substantial part of his or her estate
Success in business requires planning, commitment, and a strategic approach. Many new businesses take at least two or three years to turn a profit and twice as long to truly hit their stride. If you’ve created a business, you know that success doesn’t happen overnight. But do you know what will happen to your business
Receiving an inheritance can be a mixed blessing. Along with welcome financial gain come responsibilities that if not properly handled can give rise to many unanticipated problems. Here are some mistakes and how to avoid them. 1. Not Considering Potential Taxes You do NOT pay income tax on an inheritance. Instead, there are death taxes,
Today, 16 percent of children in the United States live in “blended” families, according to U.S. Census data. Blended families are households that have a stepparent, stepsibling, or half-sibling. In Pennsylvania, stepchildren do not receive the same treatment as full biological children or adopted children in the case of inheritance, except as regards Pennsylvania Inheritance Tax. Stepchildren
More than 50 million Americans receive Social Security retirement benefits. Most of these recipients are retirees who worked and paid Social Security taxes. But millions of dependents and survivors of retired workers, including spouses and ex-spouses, also receive a monthly benefit from Social Security. Spouses can collect Social Security benefits based on their fellow spouse’s
At first glance, life insurance may not seem related to the distribution of money and property in your estate plan. However, it can be an integral and important part of a well-drafted estate plan. In addition to providing a sizable sum of money to your heirs, a life insurance policy offers other benefits. These include
A “Living Will” is a legally-enforceable written statement that indicates your preferences regarding end-of-life treatment. It applies if you are unable to communicate those preferences. Living Wills are not just for the elderly. People of any age can lose capacity. They may have an accident, suffer a serious injury, or develop a disability at any
Regrettably, many people fail to incorporate measures in their estate and retirement planning to deal with possible incapacity. For most, doing so can be as simple as having comprehensive financial and health care powers of attorney. For others, a trust may be more appropriate. Once incapacitated, it may be too late to implement these measures.
Buying or selling a home can be one of the most important financial transactions in one’s life. Sale or other disposition of one’s home after death is often the most significant financial transaction in the distribution of a decedent’s estate. Tax consequences play an important role. The biggest concern when selling property is usually capital
