If you’re the parent of a child with special needs, and your child receives government benefits because of his or her disability, then simply leaving an inheritance to your child through your will is not enough to take care of him or her. In fact, planning your estate in this way might do more harm than good. Why? Because, as you know, your child is only allowed to have very limited assets. So, even if you leave him or her a small inheritance, say, $5,000, your child can lose essential … [Read more...] about Have a Child With Special Needs? You Need More Than a Will
How Long Does it Take to Settle a Revocable Living Trust?
One of the benefits of choosing a revocable living trust over a will is that, in many cases, when the trust maker passes away, his or her trust can be settled quicker and more efficiently than a will can be probated. So, exactly how long does it take to settle a trust? The answer is, “it depends”. There are a lot of factors that, taken together, determine how long it will take for your successor trustee to transfer the property in your trust to the appropriate beneficiaries. Here are a few … [Read more...] about How Long Does it Take to Settle a Revocable Living Trust?
What is a Holographic Will?
A holographic will is one that’s handwritten. Some states recognize holographic wills as valid, and some states don’t. And among the states that accept holographic wills, there are a variety of requirements. In Texas, a holographic will is considered valid as long as it’s entirely in the handwriting of the person making the will, and it’s signed by him or her. Of course, the person making the will also has to have the necessary intent, plus the legal capacity to make a will. Sound like a … [Read more...] about What is a Holographic Will?
Social Security: Can You Work While Collecting Retirement Benefits?
Did you know that you’re allowed to work while collecting Social Security retirement benefits? Whether or not your paycheck affects the amount of your Social Security depends on your age. When it comes to determining whether your benefits are affected, the government takes a three-tiered approach: Before You Reach Full Retirement Age. If you haven’t yet reached full retirement age (the range is from 65 to 67, depending on your year of birth), then earning too much money will result in a … [Read more...] about Social Security: Can You Work While Collecting Retirement Benefits?
What is the Gift Tax?
With so much focus on the estate tax, the federal gift tax is often an overlooked topic of conversation. Here’s how it works: Annual Exclusion You’re allowed to make gifts of up to $13,000 per year, per recipient who is not your spouse. If you’re married and your spouse is a U.S. citizen, then there’s no limit to the value of gifts you can give him or her. (If you spouse is not a U.S. citizen, then you’re somewhat more limited.) Each grantor has the right to give gifts, tax-free, up to … [Read more...] about What is the Gift Tax?
What are the 2011 IRA Contribution Limits?
The IRS recently announced the contribution limits for those funding an Individual Retirement Account during 2011 – and they’re the same as the 2010 limits. So, whether you have a regular IRA or a Roth, you’re allowed to contribute $5,000 to the account next year. If you’re 50 or older, you can take advantage of the “catch up” provision, and put an extra $1,000 in your IRA. What about Income Limits? If you’re considering a Roth IRA, you may be wondering whether the income limits will change … [Read more...] about What are the 2011 IRA Contribution Limits?
Keeping Your Estate Planning Documents in a Safe Deposit Box? Proceed With Caution
When it comes to storing your estate planning documents, you need a spot that’s secure and easily accessible. Your documents need to be protected from theft, fire, and floods and they need to be in a location where you can get to them – and where your executor or trustee can get to them, if necessary. At first blush, it might seem like a safe deposit box is the perfect place to store your documents. After all, it’s behind lock and key with all the security your bank can provide, and it’s … [Read more...] about Keeping Your Estate Planning Documents in a Safe Deposit Box? Proceed With Caution
Does Signing as Attorney In Fact Make You Personally Responsible For a Debt?
If someone close to you has executed a Power of Attorney appointing you attorney-in-fact, you should feel honored. That person – called the “principal” – has placed a great deal of trust and confidence in you. You might also be a little concerned. After all, one of the things you’re authorized to do, as attorney-in-fact, is to sign for debts on behalf of the principal. In fact, the Power of Attorney might even authorize you to buy property and sign for a mortgage in the name of your friend … [Read more...] about Does Signing as Attorney In Fact Make You Personally Responsible For a Debt?
Do You Need Life Insurance?
Life insurance can be a valuable estate planning tool. An insurance policy allows you to provide for your family after you’re gone, making funds available to cover short-term expenses, paying for your loved ones’ long-term needs, and leaving an inheritance for your children. But, do you really need it? Not everyone does, and the answer depends in large part on your financial situation and the size and needs of your family. Here are some factors to consider: Do you have dependents? … [Read more...] about Do You Need Life Insurance?
Estate Planning Tip: Organize Your Documents
Once you’ve made your estate plan, you might want to consider going the extra step and organize your documents and other information so that it’s as easy as possible for your loved ones to take care of your final affairs when the time comes. What does this involve? Your estate planning documents should be kept together, in a location that’s safe from fire, theft, and flooding. Your executor and other loved ones of your choosing should know where your documents are and how to access … [Read more...] about Estate Planning Tip: Organize Your Documents
