Long-term care can be very expensive, but many long-term care expenses can be deducted from your taxes. Two important recent decisions by the U.S. Tax Court provide guidance on when care giving services are deductible. In one decision, the court ruled that payments to non-medical caregivers are still deductible as medical expenses; in the other, […]
Category: Tax Planning
Individual Retirement Accounts (IRAs) are a popular investment tool for retirement, but they also need to be taken into account when doing estate planning. Although IRAs can be used to provide for heirs either directly or through a trust, to what extent your heirs will benefit from the IRA and avoid unnecessary taxes depends on […]
When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While a 401(k) provides protections for a surviving spouse, an IRA does not.
Because the 401(k) is an employee-based retirement system, it […]
The Good
Congress has passed and the President has signed into law the deal extending the Bush tax cuts and added some additional tax law changes.
As it relates to estate tax planning, the key elements of the legislation are the following:
Restoration of the federal estate tax, which was to have been “repealed” for the calendar year […]
LegalZoom, one of the most prominent sellers of do-it-yourself wills and other estate planning documents, is the target of a class action lawsuit in California charging that the company engages in deceptive business practices and is practicing law without a license.
The lawsuit was filed in Los Angeles Superior Court on May 27, 2010, by Katherine […]
The federal estate tax lapsed (was “repealed”) on January 1, 2010.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 […]
As the New Year approaches, taxpayers around the nation are thinking about making gifts or other financial moves before January 1 that will benefit them come April 15, 2010. Here are some year-end considerations relating to gifting, distributions from retirement accounts, charitable donations, retirement account rollover options and more.
A Reprieve on RMDs
Last year, as the […]
With the stock market down significantly, some parents and grandparents are looking at safer ways to help a child or grandchild save for college. Prepaid 529 plans offer them (or any other family member) the opportunity to lock in tuition for the child at today’s rates. These plans are gaining in popularity now that the […]
The Internal Revenue Code provides an income tax deduction for medical expenses which include “qualified long-term services”1. However, the IRS provides special rules on deducting qualified long-term care costs as medical expenses. While the costs of a skilled nursing home should be deductible, the deductibility of the costs of an Assisted Living Facility (ALF) is […]
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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