If you have, or are considering, a Revocable Living Trust, it’s important to know that having an effective trust is takes more than one step. It’s not enough to just have your attorney draw up your trust agreement and sign it – you also have to fund your trust. Funding your trust means transferring property out of your individual name, and into the name of the trustee. Any property that is owned by the trust falls under the terms of the trust and is within the control of the trustee. So, he … [Read more...] about Have You Funded Your Revocable Living Trust?
Is Your Parents’ Home As Safe As It Could Be?
As your mom and dad age, it may be harder for them to continue to function like they used to. Mobility declines, hearing and eyesight start to fail, and the risk of falling becomes a real worry. But most people want to avoid long-term care and continue to live independently for as long as possible. There are a few simple steps you can take to help your parents remain safe at home for as long as possible: First, take a good look at the lighting throughout the home. Making sure that the … [Read more...] about Is Your Parents’ Home As Safe As It Could Be?
Do You and Your Spouse Have “I Love You” Wills?
Many married couples have “I Love You” wills. These are simple wills that mirror each other and leave all your assets to the surviving spouse. While there’s nothing inherently wrong with this type of will, unless you’re in a very limited financial situation, “I Love You” wills may not be the best option for your family. Here are some of the things that this type of will just can’t do: Tax Planning. If your estate is large enough to be taxable – and starting in 2011, this just might include … [Read more...] about Do You and Your Spouse Have “I Love You” Wills?
Talking To Mom And Dad About The Estate Tax
Of all the uncomfortable things you have to talk to your parents about through the years, probably the toughest is their money. Yet, as your parents age, conversations about their money tend to become more and more necessary. This is especially true as the end of 2010 approaches, and the reality looms that – unless Congress makes a change – the estate tax will return next year with a only a $1 million exemption and a 55% top rate. As an adult child of aging parents, this unprecedented … [Read more...] about Talking To Mom And Dad About The Estate Tax
Should You Convert to a Roth?
This year marks a change in the law that governs who can and can’t convert a traditional IRA (or 401(k)) to a Roth IRA. In the past, there were income restrictions that prevented people above a certain income threshold from converting. This year, the income restrictions have been removed, and anyone can convert. But should you? There are some things you’ll want to consider in deciding whether to convert to a Roth IRA: How will you pay the conversion tax? Traditional retirement accounts … [Read more...] about Should You Convert to a Roth?
The Irrevocable Life Insurance Trust
With the estate tax sure to make a comeback next year, estate tax planning is once again at the forefront of many peoples’ minds. And in calculating your gross estate for tax purposes, the IRS includes the value of any life insurance policies you own. For people whose life insurance policies drive the value of their gross estate into the taxable realm, an Irrevocable Life Insurance Trust (ILIT)can be an effective estate planning tool. How does it work? You establish an ILIT and name a … [Read more...] about The Irrevocable Life Insurance Trust
Failing to Plan is Planning to Fail: Why You Need an Estate Plan
What is the purpose of an estate plan? At its most basic, an estate plan ensures the smoothest, most orderly transition possible at the time of your death. This means that your loved ones know where you want your property to go – and how to get it there. It also means that, if you have young children, your loved ones know who is supposed to take care of your children, and what your expectations are for how your kids are to be brought up. A comprehensive estate plan also includes a plan for … [Read more...] about Failing to Plan is Planning to Fail: Why You Need an Estate Plan
The Signs of Financial Elder Abuse
Did you know that senior citizens control more than 70 percent of the wealth in America? Combine this with the fact that, as we age, there’s an increased chance that we’ll suffer from dementia or other forms of mental decline, and it becomes obvious why the financial abuse of the elderly is such a problem. The financial elder abuse can take a number of forms. It can be simple and straightforward such as a caregiver taking a ring from a jewelry box or forging a check. It can involve the … [Read more...] about The Signs of Financial Elder Abuse
Estate Planning With an Incentive Trust
You’ve worked hard all your life to build a financial legacy to leave to your children and grandchildren. One concern you might have is making sure your beneficiaries understand and carry on the values you’ve lived by and tried to instill in your family. Another concern might be making sure that your beneficiaries manage their inherited wealth wisely. An incentive trust might be the way to address these concerns. An incentive trust is not a separate type of trust, it’s just a trust with … [Read more...] about Estate Planning With an Incentive Trust
When Should You Create an Advance Directive?
So much of estate planning involves preparing for the unexpected. This is certainly the case when it comes to putting your incapacity plan in place. An essential part of your incapacity plan is having an Advance Directive. This is a document, such as a Living Will, that lets you communicate ahead of time your preferences for the type of care you want to receive – and don’t want to receive – if you’re gravely ill or seriously injured and can’t communicate your own wishes. Advance Directives … [Read more...] about When Should You Create an Advance Directive?
