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?
What’s Your Net Worth?
Knowing your net worth is valuable not only for purposes of financial planning – it can help you track your progress from year to year and set goals for your family’s financial growth and security; but also for estate planning purposes – especially for letting you know whether you need to engage in estate tax planning. If you don’t already know your net worth, it’s not hard to determine. All it takes is a little bit of time, a list of your debts and assets, and a calculator. Step One: Add Up … [Read more...] about What’s Your Net Worth?
Can I Disinherit My Spouse?
As a rule, you’re allowed to do whatever you want with your property when you pass away. Whatever instructions are left in your will are supposed to control where your assets go, right? Well, not necessarily. There are some pretty big exceptions to this general rule, and one of them has to do with the property your spouse is entitled to after your death. There’s no state in which you can completely and totally disinherit your spouse, unless of course, he or she agrees in writing in the form … [Read more...] about Can I Disinherit My Spouse?
How to Avoid Estate Taxes
With the estate tax making a comeback next year, people with taxable estates are once again looking for ways to minimize- or even avoid – their estate tax bill. You’re taxed on the value of assets you have in your “gross estate” at the time of your death, so the way to reduce your tax bill is to reduce the size of your gross estate. Here are the methods for doing that: Spend, Spend, Spend. Spending your assets is the obvious choice, and it’s also likely the least attractive. While spending … [Read more...] about How to Avoid Estate Taxes
Not All Property Is Subject To Probate
Probate is the court-administered process for distributing your property to your heirs when you pass away. But, did you know that not all property has to go through the probate process? Generally, property that is titled solely in your name at the time of your death – and that no one else has any contractual right to receive – has to go through probate. Property that’s not in your name, or that’s in your name and someone else’s, does not have to go through probate. Knowing what property does … [Read more...] about Not All Property Is Subject To Probate
Inheriting? This Year, It Could Be Pricey
We all know that the estate tax has been repealed for the year 2010 – and that it’s scheduled to come back, in some form, starting on January 1, 2010. But did you know that, along with the estate tax repeal came a change in the income tax rules that apply to inherited property? The change applies for this year only, and here’s how it works: When you inherit property, the IRS assigns a value to the property, called the “basis”. If you sell the property in the future, the amount of your gain … [Read more...] about Inheriting? This Year, It Could Be Pricey
Caring For an Elderly Parent: How to Cope
It’s the last thing many of us expected to be doing, and yet as our population ages, more and more of us find ourselves as the primary caregivers for our elderly parents, often before our own kids have even left the nest. While most of us are happy to take care of our parents, the job can be grueling and exhausting and –let’s face it – thankless. Here are a few tips on how to cope. Don’t forget to take care of yourself. Of course, it’s important to get enough sleep. It’s also essential to … [Read more...] about Caring For an Elderly Parent: How to Cope
