Takeaways Full Social Security Retirement Age (FRA) is 67 for those born in 1960 or later, not 65 as it once was, due to legislation adjusting for increased life expectancy. Claiming Social Security benefits before FRA results in permanently reduced monthly payments. Your plans for retirement should consider your health, work plans, and other income
Takeaways Actor Bruce Willis’ diagnosis of aphasia and frontotemporal dementia (FTD) highlights the importance of incapacity planning. Incapacity planning involves creating legal documents to manage financial and medical affairs if one becomes unable to make decisions. Financial documents include a durable financial power of attorney and a revocable living trust. Medical documents include a living
An ABLE (Achieving a Better Life Experience) account is a must-have savings tool for persons with special needs. It supplements but does not replace needed public benefits while often providing greater flexibility than available under a supplemental needs trust. George Vasiliadis, an attorney with the law firm of Vasiliadis Pappas Associates, notes that “in Pennsylvania,
According to the U.S. Department of Health and Human Services, 70% of people who reach age 65 will need some form of long-term care during their lives. “Long-term care” refers to those services and supports that might become necessary to perform everyday tasks and personal care needs. Everyday tasks, sometimes called “instrumental activities of daily
Takeaways Many older Americans shy away from cryptocurrencies as an investment vehicle for their retirement. Millennials and Gen Z also view cryptocurrencies as risky — but as a risk worth taking. We’re living in an increasingly digital world where virtually all areas of our life are penetrated by technology. Not surprisingly, younger Americans who have
Takeaways “Per stirpes” and “per capita” are terms used in estate planning that refer to the distribution method for the assets of a deceased person to their heirs. The distinction can significantly affect how assets are shared among family members. When deciding which distribution method to use, consider your family dynamics and the potential for
Don and Marjorie Peterson put their home in what they thought was a Medicaid Asset Protection Trust. They named their daughter as trustee and their two grandchildren as “remainder” beneficiaries who would inherit the home after they died. Medicaid Asset Protection Trusts are irrevocable. Thirteen years later, their relationship with their daughter and grandchildren having
For over 100 years, since the inception of the federal income tax in 1913, fluctuations in tax rates, state as well as federal, have profoundly affected our economy in ways far beyond their impact on corresponding tax revenues. So argue the authors of Taxes Have Consequences – An Income Tax History of the United States.
Most persons have heard about the “Gift Tax”. But many are largely ignorant of what it is, how it works, and who actually pays it. Moreover, there are some popular misconceptions surrounding it. Here are some important points to be aware of. What is it? A tax is imposed by the federal government upon a
After his wife died Frank, a retiree, updated his Will. He wanted his estate to pass in equal shares to his three children. Most of Frank’s estate consisted of investments held in a brokerage account. Unfortunately, Frank, after signing his Will, on the advice of his financial planner, and unbeknownst to his lawyer, designated his
