Articles Posted in Estate Planning

If you are navigating a divorce or recently lost a loved one, you might find yourself going through several complex estate planning documents. You might discover that you now have interests in one or several trusts. While you might have established a trust with a spouse to take care of children after your death or a loved one might have created a trust for you to receive benefits, it is important to understand how to read and comprehend the terms of a trust. 

While many people are familiar with wills, many people are not exactly what trusts do or how to best interpret them. While the best approach begins with reading over the terms of the trust, there are also some other important strategies to follow as you prepare to retain the assistance of a skilled estate planning lawyer.

# 1 – Become Acquainted with Common Trust Terms

Many people think that estate planning is a once and done process. In actuality, it is critical to constantly revise the terms of your estate plan. Not only can changes in your own life impact the terms of your trust,  but estate planning law also changes frequently. 

Each year, numerous cases influence nuances in estate planning law. This article takes a brief look at three recent cases and interprets what these cases mean for the future of your estate plan.

# 1 – Blech v. Blech

Deciding to get divorced presents several considerations. While things like what will happen to your children as well as where you will live are likely at the front of your mind, estate planning is likely something that you have not yet begun to consider. 

It is a good idea to both review and update your estate plan around any changes in your situation. This includes changes in finances and divorce, but also major life events like divorce. To make sure that you revise your estate plan, this article reviews just a few of the most reasons why doing so is important. 

# 1 – Divorce Takes Time

If you’ve had a 401(k) for some time, you’re aware that each year many factors influence the value of contributions. 2020 is shaping up to be a great year to make contributions to a 401(k) plan. The Internal Revenue Service recently announced its 2020 limits for plan contributions.

Not only must employers make sure to make administrative changes to these retirements plan, but account holders should also similarly be prepared to do what it takes to make the most of their contributions.

What the Announcement Involves

For many decades, discovering that a relative or loved one had passed away and left you something was only a good thing. Due to taxes and complications with real estate, however, it has become common for people to be hesitant if you find out that you’re someone’s beneficiary. 

This presents the question of how to respond if someone does not want your estate or if you have no heirs or loved ones to name as a beneficiary.

Accepting an Inheritance is Not Required

The state of New Jersey recently passed the Medical Aid in Dying for the Terminally Ill (MAID) Act. This law permits physicians to assist in the suicide of terminally ill patients following three requests by the patient to do so. To achieve physician assistance, one of the requests must be in writing. Following verification by a second physician, the treating physician can then prescribe medication for the rest of the patient’s life. While the law had controversial origins, it was later upheld by the New Jersey Supreme Court. While the law only directly impacts the state of New Jersey, it has implications for everyone in the country who is interested in estate planning.

New York’s Death with Dignity

The New York Medical Aid in Dying Act is currently under consideration by both the Assembly and Senate Committees.  If passed, New York’s law would require that a patient who requested aid in dying medication must be at least eighteen years old, a resident of New York, mentally capable of making and communicating health care decisions, and diagnosed with a terminal illness that will result in death within six months. A patient who meets these requirements will then only be prescribed medication if:

When a family business owner has the goal of passing on ownership in the business to the following generation, it is important to include details about business succession in your estate plan. The most challenging issue presented in many family business plans relates to identifying who will control the business. This article reviews some of the important pieces of advice that you should remember to follow if you are engaged in estate planning. 

Planning in Uncertain Times

One of the most difficult aspects of business succession planning today involves the uncertainties of  federal estate tax law. Under existing federal estate law, every citizen of the United States in 2019 can give during their lifetime or at death a maximum of $11,400,000. This amount is often referred to as the “basic exclusion amount”. Without Congressional intervention, the Exclusion Amount is set to be lowered on January 1, 2026. Given that federal estate tax law is as advantageous it has ever been and that this policy will not last forever, many business owners have decided to take advantage of these laws while they can. 

Deciding which type of IRA works best for your estate plan can be challenging. While Roth and traditional IRAs are the most common types of retirement accounts, there are other options that you should consider as well. These lesser-known accounts can provide numerous tax advantages based on a person’s situation. This article reviews the six most common types so that you can begin considering which retirement account works best for you.

# 1 – Traditional IRAs

The most popular type of retirement savings account, there are several reasons why traditional IRAs are so common. Contributions are deductible from a person’s current income and consequently lower the individual’s taxable income for a year. Withdrawals from the account are then taxed at the tax rate at that time. 

One of the major elements of most estate plans is deciding how to handle your home. For many families, a home is among its most valuable assets. While everyone can benefit from an estate plan, it is particularly that homeowners create a plan. 

To make matters more complex, there are many estate planning strategies to choose from when it comes to deciding what to do with your home. This article reviews some of the various strategies used to pass on ownership of a home.

# 1 – Probate

Most of us have either seen a commercial or heard someone mention reverse mortgage. While some people have been left with the notion that this is a way that elderly individuals “lose” their homes, other people have heard that reverse mortgages can play a valuable role in estate planning. Even though reverse mortgages are difficult to understand, this article briefly examines the role of these mortgages.

How Reverse Mortgages Work

On its simplest terms, reverse mortgages involve taking a loan out against the equity in a person’s home. Proceeds from the loan can be received either monthly in a lump sum. A person is then charged interest on what they owe. An individual must be 62 years old to qualify for a reverse mortgage and must reside in their home. Even though a person receives payment from a reverse mortgage, the individual must continue to pay real estate taxes, insurance, and homeowner association dues. The lending institution will then collect on the debt when the borrower dies or moves out of their residence.