EDITOR’S NOTE: This article appeared one year ago in our February 2025 issue of Elder Law Alert. Subsequently, on July 4, OBBBA, the new federal tax law, came into existence. We chose to run this article again to offer an opportunity for our readers, as well as for ourselves, to see if the new tax
Takeaways The generation-skipping transfer (GST) tax applies primarily to very large estates that transfer wealth to grandchildren (or unrelated individuals 37.5+ years younger), ensuring at least one layer of transfer tax is paid. The new One Big Beautiful Bill Act permanently increases the GST exemption to $15 million per person starting in 2026 (up from
Most seniors want to stay at home as long as they can. The little-known Program for All-Inclusive Care of the Elderly (PACE) allows persons to do just that instead of going into a nursing home. Program History PACE’s inception dates to the 1970s when the federal and state governments were developing community-based services for some
Two retired married couples, long-time friends, Bob & Carol, Ted & Alice, experienced very similar health care crises. They responded differently with radically different results. Bob’s wife, Carol, sustained a massive stroke, rendering her severely paralyzed. After a brief hospitalization, Carol transferred to Dirty Pines Nursing and Rehabilitation Center for short-term rehab. Thirty days later,
While a Last Will & Testament is one of the most important estate planning documents you can have, there are things that it won’t cover. A Will is just one part of a comprehensive estate plan. What is a Last Will & Testament? A Last Will and Testament is a legally binding statement directing who will
Many people continue to work beyond retirement age, either by choice or out of necessity. If you are receiving Social Security, you need to be aware of how working can affect your benefit payments. The Social Security Administration (SSA) sets certain limits on how much you can earn in income if you are receiving Social
Answer: Federal And State Tax Laws Encourage Charitable Giving. Consider Doing One Or More Of The Following: Include a charitable organization in your Will. This can be via a cash bequest (specific dollar amount) or perhaps a fractional share of your estate. You can make a restricted gift, for example, to the chemistry department of
Takeaways While ABLE accounts offer tax advantages for individuals with disabilities, they come with some limitations. These include spending restrictions, annual and cumulative contribution caps, potential Medicaid payback, and age eligibility rules. Nevertheless, establishing one, especially in Pennsylvania, is probably a good idea for most if not all persons with disabilities. But it’s not a
Takeaways Starting in 2026, employees aged 50 and older who earn over $145,000 must make 401(k) catch-up contributions on an after-tax (Roth) basis, losing the immediate pretax deduction. Affected high earners should check if their employer offers a Roth 401(k) option and review their overall retirement and tax strategy to maximize savings despite the rule
Takeaways Social Security provides spousal benefits to eligible spouses of retired or disabled workers, potentially up to half of the worker’s full retirement benefit. Survivor benefits are available to family members, including spouses, children, and dependent parents, after a worker’s death, offering financial protection similar to life insurance. Social Security is best known as a
