Planning is important when providing for your children or grandchildren. But planning for their education has special importance and may have special advantages. This article looks at how 529 plans may have tax advantages when providing for education. Further, the article looks at how such a plan may provide asset protection in bankruptcy, as well. 529 Plans: Planning for Education with a Tax and Asset Protection Bonus … [Read more...]
Make Your Own Plan
Planning is important. If you don’t plan, your assets go pursuant to the state’s default plan, which may be very different from what you want. If you plan, you can be sure your assets go exactly to whom you want and in a manner that can benefit them the most. Make Your Own Plan … [Read more...]
Avoid Probate With a Living Trust
In a previous post, we looked a few different types of asset transfers that organically take place outside of the probate process. We did not explain why probate is something that you may want to avoid because this is a two-part series on this very important piece to the estate planning puzzle. Before we look at the drawbacks of probate, we should emphasize the fact that it is not inherently negative, and it serves a purpose. It would not be fair for the people named in a will to receive … [Read more...]
Estate Planning: Build a Family Relationship
Estate planning can be approached in a few different ways. You can choose to play your cards close to the vest with regard to the way that you are going to provide for your loved ones. On the other hand, you could be open and communicative about your plans, and this is probably the better way to go if it is at all possible. There is more to the process of estate planning than the simple execution of the appropriate documents. You should definitely consider the events that must take place … [Read more...]
What Is a Step-Up in Basis?
People that have not looked into the subject before are often very pleasantly surprised when they learn about how taxation applies to inheritances. Generally speaking, you do not have to report an inheritance on your income tax returns. There is a federal estate tax, but most people don’t pay it, because it is only applicable on transfers that exceed $11.4 million. There is a state level estate tax in Vermont with an exclusion of $2.75 million. It has been estimated that fewer than 75 estates … [Read more...]
Estate Planning Survey: Americans Are Woefully Unprepared
While it is true that passing away is at the bottom of everyone’s to do list, it is an inevitability that we should all face head on. It is important to take the right steps to make sure that your legacy is passed along in accordance with your wishes after you are gone. Unfortunately, a very surprising majority of Americans have no estate planning documents at all. Eye Opening Survey Results A legal website engaged Harris Interactive to conduct an in-depth survey a while back that was intended … [Read more...]
Many Reasons to Plan
Each of us will die eventually. This article looks at how planning can make our passing easier for our loved ones. Specifically, this article looks at how planning can maintain privacy for your loved ones. Many Reasons to Plan … [Read more...]
When Will My Heirs Receive Their Inheritances?
When you are planning your estate, you have options. There are various different ways that you can get inheritances into the hands of your loved ones after you pass away. It is possible to be proactive about the facilitation of timely asset transfers. If you were to use a last will as your primary asset transfer vehicle, you would name an executor when you create the document. This person would serve as the estate administrator. After your passing, the will would be admitted to probate. … [Read more...]
Why Crowdfunding May Cost You Medicaid Eligibility
Each year, crowdfunding websites raise money for causes. Did you know such a website could impact your eligibility to receive Medicaid? Read on to learn how crowdfunding can impact Medicaid eligibility. Why Crowdfunding May Cost You Medicaid Eligibility … [Read more...]
Planning for Step-Children
If your spouse has biological children, you may consider them your own. But, if you haven’t adopted them, they have no inheritance rights. This article looks at how to plan for step-children. Planning for Step-Children … [Read more...]
