The federal estate tax lapsed (was “repealed”) on January 1, 2010. But under current law, it will automatically rise from the ashes on January 1, 2011 and, unless Congress intervene, only $1 million per estate will be exempt from a stiff estate tax in upwards of 55%. That compares with a $3.5 million exemption and […]
Category: Estate Planning Basics
Private retirement savings plans, like IRAs and 401(k)s, have become the main way for American families to save for retirement. But parents of children with special needs need to be vigilant when signing up for a retirement plan or company life insurance program.
Most retirement accounts allow the owner to choose a designated beneficiary to receive […]
The Good – The Estate Tax Is Repealed, For Now
Effective January 1, 2010, there is no longer a tax on the estates of those dying during 2010. Although Congress may reinstate the tax retroactively in 2010, perhaps as part of broader tax reform, this is by no means a certainty.
If Congress fails to act, the […]
Many people think that estate plans are for someone else, not them. They may rationalize that they are too young or don’t have enough money to reap the tax benefits of a plan. But as the following list makes clear, estate planning is for everyone, regardless of age or net worth. (For more information on […]
Getting remarried can be a joyous event, but it can also make estate planning more complicated. Adding additional family members to your life can make it much richer and happier However, when deciding how to provide for the surviving spouse at the death of the first, and how your combined estate shall be divided amongst […]
The Internal Revenue Service reminds consumers to avoid identity theft scams that use the IRS name, logo or Web site in an attempt to convince taxpayers that the scam is a genuine communication from the IRS. Scammers may use other federal agency names, such as the U.S. Department of the Treasury.
In an identity theft scam, […]
Like your vehicle, your estate plan needs occasional “servicing” if it is going to perform the way you want when you need it. Your estate plan is designed to accomplish your goals based upon your circumstances at the time (i.e. - your family, your assets, tax laws, etc) at the time it was created. Since […]
A “Durable” Power of Attorney (”DPOA”) should be a part of every estate plan, regardless of whether you are using a will, a living trust, or do nothing at all. A DPOA is a legal document in which you appoint someone, called an “agent” or an “attorney-in-fact”, to handle your personal, non-medical, decisions. Without one, […]
Congress has passed and President Bush has signed legislation that will temporarily suspend the penalty for seniors who fail to take the required minimum distribution from IRA and employer retirement accounts in 2009.
But the penalty freeze, which is part of the Worker, Retiree, and Employer Recovery Act of 2008, does not affect required distributions for […]
Joint ownership arises where two or more people own an undivided interest in an asset or property. When one of the owners dies, the entire ownership passes automatically to the surviving joint owner without going through probate. Because the use of joint property can avoid probate, people sometimes use it as an estate planning method. […]
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