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
Do you own a vacation home? If so, you appreciate the opportunity it provides you, your children, grandchildren and other loved ones to gather and share happy times together. But after you’re gone and the home passes to the next generation, without proper arrangements in place, family harmony can suffer. George Vasiliadis, an attorney with
Medicare is a federally-funded program administered by the Centers for Medicare and Medicaid Services (CMS), an agency within the U.S. Department of Health and Human Services. It pays for medical care provided to seniors, age 65 or older, and for younger persons who are permanently disabled. But did you know that Medicare, just as some
It’s 10 o’ clock. Do you know where your digital assets are? And even if you do, can someone you trust access them for you if you can’t? Does your estate plan include measures that will enable your agent under power of attorney, trustee, or the executor of your estate to identify and access these?
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,
When a person declares bankruptcy, an individual retirement account (IRA) is one of the assets that is beyond the reach of creditors, but what about an IRA that has been inherited? Funds held in an inherited IRA are not exempt from creditors in a bankruptcy proceeding because, according to the U.S. Supreme Court, they
