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Tax & Estate Planning

Four Provisions People Often Forget to Include in Their Estate Plan

Even if you've created an estate plan, are you sure you included everything you need to? There are certain provisions that people often forget to put in a will or estate plan that can have a big impact on a family. Alternate Beneficiaries One of the most important things your estate plan should include is at

How Long Should I Hold on to Important Documents?

It is hard to know what documents to trash and when. Before you know it, your spare room, office, basement, or garage is overflowing with boxes of papers that all seem important. Trying to weed through the mess and figure out what to toss? Keep reading. What Should I Keep? There are some documents

How Changes to Portability of the Estate Tax Exemption May Impact You

On July 8, 2022, the Internal Revenue Service issued new guidance that allows a deceased person’s estate to elect “portability” of their unused gift and estate tax exemption for up to five years after their death. So, if your spouse passed away less than five years ago, you may be able to file an estate

Children Are Liable For Unpaid Nursing Home Bills Of Parents Even If They Never Got Any Of The Money

Sam, Mary’s son and agent under her power of attorney, didn’t bother to seek legal advice after Mary entered a nursing home.   “She only has $60,000.  There’s nothing we can do”, he told his sisters.  Five months later, with her funds exhausted, Mary sought Medicaid to pay for her care.  To Sam’s shock and dismay

Executors: Were You Caught With Your Pants Down By A Stock Market Crash? Here’s What You Should Have Done

Getting socked with drastic stock market losses is bad enough.  But Executors face the added problem of having to answer to disgruntled beneficiaries.  The current market meltdown illustrates an important point many Executors fail to recognize. An Executor is the person named in a Last Will & Testament who is responsible for distributing a decedent’s

Using an Intentionally Defective Grantor Trust to Transfer Assets

An intentionally defective grantor trust (IDGT) is a common estate planning tool that is used by wealthy families to transfer assets from one generation to the next while achieving significant tax savings. IDGTs are especially useful if you have assets that will appreciate significantly over time. An IDGT is “intentionally defective” because it purposely

The Tax Consequences of Selling a House After the Death of a Spouse

If your spouse dies, you may have to decide whether or when to sell your house. There are some tax considerations that go into that decision. The biggest concern when selling property is capital gains taxes.  A capital gain is the difference between the "basis" in property and its selling price. The basis is the

Using a Roth IRA as an Estate Planning Tool

A Roth IRA does not have to be used as just a retirement plan; it can also be a way to transfer assets tax-free to the next generation. Unlike a traditional IRA, contributions to a Roth IRA are taxed, which means that the distributions are tax-free. Also, unlike a traditional IRA, you are also not

Claiming Social Security Benefits at Age 70

If you are about to turn 70, congratulations on reaching a big milestone.  And if you also have delayed claiming Social Security retirement benefits up till now, you are joining a select group -- only 6.5 percent of Social Security recipients put off collecting their benefits until they reach three score and ten, the age