Facebook-f Twitter Linkedin-in Youtube Rss
estate planning and elder law
Book Your Free Call

Estate Planning Blog Articles

Estate & Business Planning Law Firm Serving the Providence & Cranston, RI Areas

Planning Your Own Funeral Eases the Burden for Your Loved Ones

Planning your own funeral may seem like a morbid task. However, it can significantly reduce the stress and financial burden on your loved ones after you pass away. Choice Mutual’s recent article “How To Plan Your Own Funeral: 10-Step Guide + Checklist” explains that by making decisions about your funeral arrangements in advance, you can ensure that your final wishes are respected and that your family is spared from making difficult decisions during a time of grief.

Why Should You Consider Planning Your Funeral Early?

After a death, family and loved ones are responsible for managing your estate and organizing a funeral while grieving. Planning your funeral early while drafting or as part of your estate plan is a thoughtful and responsible step that alleviates the emotional and financial strain on your loved ones.  If you’ve already created your estate plan, an experienced estate planning attorney can help you detail your funeral planning in a “Last Wishes” document or addendum to your estate planning documents. These documents provide crucial guidance that reflects your personal preferences and eases the decision-making process for loved ones.

What are the First Steps in Pre-Planning Your Funeral?

Choosing a Funeral Home

One of the first decisions in pre-planning is selecting a funeral home. This choice is crucial as it can significantly affect the logistics and cost of your funeral services. Consider the reputation, services offered and pricing of different funeral homes. You can select a funeral home, create a plan and even prepay for it. Be sure to share existing funeral plans or prepayments with your estate lawyer.

Deciding Between Burial and Cremation

Do you prefer a burial or cremation? Each option comes with different considerations, such as the type of ceremony, the handling of remains and the associated costs. If choosing burial, consider the kind of burial—traditional, in a vault, or a natural burial. If cremation is your choice, decide whether you want it done before or after the funeral service and what should happen to your ashes.

How Do You Want to Be Remembered?

Selecting the Type of Funeral or Memorial Service

Your funeral or memorial service can reflect your personality and values. Decide whether you want a traditional funeral, a celebration of life, or a simple memorial service. Each type of service offers different atmospheres and can be tailored to how you wish to be remembered.

Planning the Ceremony Details

Think about the location, the attendees and the flow of the ceremony. Would you prefer a religious, secular, or culturally specific service? Details like flowers, music, and readings should also be considered, as these can make the service personal and meaningful.

How Can You Ease the Funeral Logistics for Your Family?

Creating a Last Wishes Document as Part of Your Estate Plan

Creating a Last Wishes document of your funeral plans and sharing it with your family is essential. This document should detail all your decisions—from the type of service to the specifics of your burial or cremation preferences. It is also wise to discuss these plans with your loved ones to ensure that they understand your wishes and the reasons behind them.

Financial Planning for Funeral Expenses

Consider how you will finance your funeral. Options include savings, life insurance, prepaid burial plans, or relying on your estate. Your estate planning attorney can guide you in choosing the right prepaid funeral plan based on your financial situation.

What are the Benefits of Planning Your Funeral in Advance?

Planning your funeral in advance can significantly ease the emotional and financial burden on your loved ones. By making critical decisions about your funeral arrangements, such as the type of service and financing options, you ensure that your wishes are honored and relieve your family of added stress. Consulting with a qualified estate planning attorney can provide clarity and direction, ensuring that you make informed decisions integrated with your estate plan.

Key Takeaways

  • Early Planning: Start funeral arrangements early when drafting your estate plan to reduce future stress for your loved ones.
  • Funeral Home Selection: Choose a funeral home carefully, considering services, reputation and pricing to avoid future complications.
  • Burial vs. Cremation: Decide whether you prefer burial or cremation, and detail your specific wishes for handling these.
  • Planning the Service: Tailor your funeral or memorial service to reflect your personality and values, making the event meaningful for attendees.
  • Documenting Last Wishes: Record all funeral plans, include them with your estate plan and share them with your family to ensure that your final wishes are honored.
  • Financial Planning: Explore financing options like insurance, savings, or prepaid plans to manage funeral costs effectively and prevent financial strain on your family.

Reference: Choice Mutual (April 2, 2024) “How To Plan Your Own Funeral: 10-Step Guide + Checklist”

What Happens If You Inherit a Parent’s House?

Inheriting your parent’s home is a combination of sadness, relief, and worry. The last one can be avoided if the right planning is done in advance, says a recent article, “6 lessons I learned from inheriting a parent’ s house” from Bankrate. When all these feelings are combined with navigating the inheritance among siblings, things can get complicated quickly.

Many people think children automatically inherit a house when their parents die, but this isn’t true. It’s possible for children to inherit without a will, but it doesn’t always happen. Every state has its own laws about who inherits what in the absence of a will. Without a will, there will be unpleasant surprises for the family.

Parents need to talk with their children to tell them if they have a will or estate plan and where the will can be found. If there is no will, the parents must meet with an estate planning attorney as soon as possible to ensure their wishes are documented.

Wills and estate plans are never completely done. Wills need to be updated as circumstances change over time. A will created while a parent is in their 50s may not reflect the family’s status ten years later. Let’s say one sibling is disabled and receives means-tested government benefits. If the sibling is left something in the will, their benefits could be cut off. If the sibling was well ten years ago, the estate plan didn’t include a special needs trust, which would allow the family to provide for the disabled sibling without putting their benefits at risk.

The general rule for reviewing wills is to review wills every three to five years. They may not always need updating, but they definitely need reviewing.

Heirs need to put everything in writing if they have been left assets like the family home as a group. Siblings will have different lives and needs, so inheritances need to be clarified and documented. A verbal agreement is asking for trouble, even in the best of circumstances. If something happens to a sibling and their spouse has a different idea of what they want to happen to their share of the house, for instance, the way forward won’t be pleasant.

It’s best to plan how your assets should be managed after death. Would a revocable trust work better to keep the family home out of probate? If the home is placed in a revocable trust upon the death of the owner, the ownership of the home goes to a trustee, avoiding probate.

Plan ahead and expect surprises. Inheriting a home isn’t great for every family, as it comes with costs. Property taxes, maintenance, and utility costs might make home ownership a burden rather than a blessing. Parents need to think carefully about whether or not inheriting the home will work for the family.

Consulting with an estate planning attorney in advance can facilitate a discussion about how best to pass the family home onto the next generation or determine it’s not in everyone’s best interests. Leaving a legacy of careful planning is as much a gift to the family as the home itself.

Reference: Bankrate (May 3, 2024) “6 lessons I learned from inheriting a parent’ s house”

Stay-at-Home Parents Need an Estate Plan

Any family’s estate plan must address all aspects of life, planning for incapacity and death. It’s easy to overlook the Stay-at-Home Mom (SAHM) or dad. They don’t have paychecks, raises, reviews, or PTO. But, overlooking the importance of what the SAH parent does for the family is a big mistake, and this includes neglecting estate planning, according to a smart article from The News Enterprise: “Stay-at-home parents must be deliberate about estate plans.”

For one thing, life insurance needs to be in place for both spouses. It may be easy to define the amount of insurance for the spouse working outside of the home, but the SAH parent’s tasks also need to be insured.

How long will the children be at home needing care, and what would daycare or a caretaker cost? How much would it cost to hire someone to cook, clean, do laundry, and run the household?

If children are home-schooled, how will the SAH parent be replaced? Will the children start attending public school, or is private school more aligned with the family’s values?

It’s easy to think the working parent will slide into these tasks, but unrealistic, as any single working parent will tell you. The children will be dealing with grief and emotional upheavals—adding a stressed parent to the mix who is also dealing with grief will make for a terrible situation.

In addition to having the right amount of life insurance, estate planning documents should be prepared with an eye on this possibility. The last will and testament is used to name a guardian for minor children, who will be responsible for raising the children if both parents are unable to care for them because of death or incapacity. A revocable trust should be considered, and a trustee should be appointed to ensure the funds are available for the children’s care and education.

The revocable trust can also ensure the children are not disinherited if the surviving spouse remarries.

This plan needs the review and guidance of an experienced estate planning attorney to ensure the will is correctly created to protect the children and set up any needed trusts.

Stay-at-home parents are often the glue keeping the family running. Replacing them isn’t possible—but preparing for life’s ups and downs will help the family adjust to any major changes.

Reference: The News Enterprise (May 25, 2024) “Stay-at-home parents must be deliberate about estate plans”

Aging Well Priorities and the Need to Reauthorize the Older Americans Act

As we age, ensuring our well-being requires thorough planning and foresight. Aging well means maintaining your physical, emotional, social, and financial quality of life. While good estate planning is a must for aging well, benefits programs also help. The Older Americans Act is landmark legislation that has protected older adults’ well-being for decades.

What Is the Older Americans Act?

The Older Americans Act (OAA) provides vital services and support to older adults. Since it became law in 1965, it has funded programs such as:

  • Nutrition
  • Caregiver support
  • Community service employment

Congress reauthorized the act in 2020. Now, they can choose whether or not to reauthorize it again. According to the National Council on Aging (NCOA), reauthorizing this act is essential to support older adults’ well-being and meet their evolving needs.

How are Advocates Promoting Aging Well?

In May 2024, 200 advocates gathered on Capitol Hill to promote healthy aging. They emphasized the need to reauthorize the Older Americans Act and secure funding for various programs benefiting older adults. Their message was clear: healthy aging should be a right for all, not a privilege for a few.

What are the Key Priorities for Aging Well?

One advocate, Susan, shared her story during the Capitol Hill meetings. A retired teacher, Susan spoke passionately about the impact of community services funded by the OAA. After her husband passed away, she struggled with loneliness and health issues.

The local senior center became her lifeline. It provided meals, social activities, and health screenings. For Susan, these services were more than helpful; they were life-changing. Thanks to funding from the OAA, it was all possible.

Susan’s story underscores the importance of continuing these programs. Advocates push for the reauthorization of the Older Americans Act to ensure seniors like Susan have access to essential services that help them age well.

How Does Estate Planning Support Aging Well?

Estate planning is a crucial aspect of aging well. It involves making decisions about your assets, healthcare, and final wishes. By making these decisions, you support your well-being in various ways. These benefits and strategies include:

  • Healthcare directives: Provide for your healthcare needs through advance directives.
  • Relieve stress: You and your family can rest easily knowing you have a clear end-of-life plan.
  • Fund management: A well-planned budget incorporating benefits and your assets can provide comfort into your later years.

Why Should You Plan Ahead?

Planning allows you to maintain control over your future. It can also relieve your loved ones from making difficult decisions during emotional times. Working with an estate planning attorney can create a comprehensive plan tailored to your needs. You can start planning by taking the following steps:

  • Assess Your Assets: List your assets, including property, savings, and investments.
  • Consider Your Healthcare Wishes: Consider what kind of medical care you want if you cannot make decisions.
  • Choose a Trusted Representative: Select someone to make decisions on your behalf if you cannot do so.
  • Consult with an Attorney: An estate planning attorney can help you navigate the complexities of wills, trusts, and advance directives.

Plan for Peace of Mind

Aging well involves proactive planning and ensuring access to essential services. We can continue supporting older adults’ well-being by advocating for Congress’ reauthorization of the Older Americans Act. If you’re ready to take control of your future and start planning, contact us today to learn more about how we can help you with estate planning and ensure you age well.

Key Takeaways

  • Aging Well: Maintaining health, independence, and quality of life is crucial for older adults.
  • Older Americans Act: This act funds essential services for older adults, including nutrition, caregiver support, and community programs.
  • Advocacy Efforts: Advocates are pushing to reauthorize the Older Americans Act to continue supporting these vital programs.
  • Estate Planning: Proper estate planning helps secure your future and ensure your wishes are respected.
  • Action Steps: Assess your assets, consider healthcare wishes, choose a trusted representative, and consult an estate planning attorney.

Reference: NCOA (National Council on Aging) (May 15, 2024) “Hill Day 2024: Advocates Take Aging Well Message to Lawmakers”

Legal Planning can Help Prevent Elder Abuse

In a recent case reported by FOX43, an 86-year-old father fell victim to elder abuse at the hands of his own son. According to the report, the son stole $153,168 from his father. This story is a painful reminder of how even trusted individuals can exploit the vulnerability of our elderly loved ones. Likewise, it reminds us to be vigilant of elder abuse to prevent these heartbreaking situations.

What Is Elder Abuse, and Why Is It a Growing Concern?

Elder abuse is a serious issue that affects many older adults. It includes physical, emotional, and financial harm, and the perpetrators are often trusted individuals. Many elderly people rely on others for their daily needs, making them vulnerable to abuse.

To make matters worse, elder abuse is becoming more common as the elderly population grows. The National Council on Aging (NCOA) states that one in ten Americans aged 60 and older has experienced some form of elder abuse.

How can Legal Planning Protect Elders with POAS?

Legal planning can help protect an elderly person’s wishes and their assets. Elder law attorneys can assist in creating essential documents like wills, trusts, and powers of attorney. These documents guide the management of an elderly person’s assets and who will make decisions on their behalf.

A power of attorney (POA) is especially important. It’s a legal document that allows someone to make decisions for another person. If an elderly individual cannot make decisions for themselves, a POA is vital. A trustworthy person holding power of attorney can prevent financial abuse and protect the elderly person’s needs.

What are the Warning Signs of Elder Abuse?

Recognizing the signs of elder abuse is crucial for prevention. Some common warning signs include:

  • Unexplained injuries or bruises
  • Sudden changes in financial situation
  • Withdrawal from normal activities
  • Poor hygiene or living conditions
  • Fear or anxiety around certain individuals

What Steps can Be Taken to Prevent Elder Abuse?

  • Regular Check-Ins: Regularly check in on your elderly loved ones. Frequent visits or phone calls can help you notice any changes in their behavior or living conditions.
  • Educate Yourself: Learn about the signs of elder abuse and stay informed about how to protect your loved ones.
  • Legal Safeguards: Work with an elder law attorney to create legal documents that protect the elderly person’s assets and outline their care preferences.

How can Elder Law Help Protect Seniors?

Elder law encompasses various legal issues affecting older adults. These include estate planning, healthcare, and guardianship. An elder law attorney can help create a comprehensive plan to protect the elderly individual and their assets. Some strategies include setting up trusts to manage assets, appointing guardians or conservators, and drafting advance healthcare directives.

Take your first step toward securing a comprehensive estate plan; schedule a consultation today.

Key Takeaways

  • Elder Abuse Awareness: Stay alert to warning signs of elder abuse. Sudden financial changes, unexplained injuries, and strange behaviors are potential warning signs.
  • Importance of Legal Planning: Elder law can protect your loved ones. Leverage legal tools like powers of attorney and trusts.
  • Role of Estate Planning: Estate planning isn’t just for distributing assets after someone dies. Instead, it can protect them during their lifetime.
  • Consult an Elder Law Attorney: Aging well can be a challenge. Professional legal advice can make it safer and easier.

References:  FOX43 (Oct. 22, 2018) “Son charged for stealing $153,168 from 86-year-old father, officials talk elder abuse warning signs | fox43.com”

NCOA (National Council on Aging) (Feb. 23, 2021) “Get the Facts on Elder Abuse”

Essential Legal Documents for Graduating Seniors

As new legal adults transition from high school to college or the workforce, they must understand the significance of having essential legal documents in place. These documents can protect their interests and ensure their wishes are respected, especially in unexpected situations.

Why Do Young Adults Need Legal Documents?

Many young adults think estate planning is only for older people, but it’s crucial for everyone. Once young adults turn 18, they are legal adults, and parents or guardians no longer have authority over their health or financial accounts or information. Accidents and illnesses can happen at any age, and having the right documents can make a big difference.

There are five essential legal documents that every young adult should have:

  • Healthcare Proxy: This document allows a trusted person to make medical decisions on your behalf if you can’t communicate your wishes. Choosing a reliable and nearby person is important for making quick decisions if needed.
  • HIPAA Authorization: This gives certain people access to your medical records. Without it, your loved ones might not be able to get the information they need to help you in a medical emergency.
  • Durable Financial Power of Attorney: This lets someone manage your finances if you cannot do so yourself. It can help ensure your bills are paid, and your finances are handled properly if you’re incapacitated.
  • Living Will: This outlines your medical treatment and end-of-life care preferences. It helps your family know your wishes regarding life support and other critical decisions.
  • Preneed Guardian Designation: This appoints someone to care for you or your dependents if you cannot do so. For young parents, it ensures that their children are cared for without waiting for court appointments.

A Story of Preparedness

Consider the story shared by the Financial Planning Association about a young adult who was in a car accident. Despite being healthy and active, the accident left them unable to make decisions.

However, they had a healthcare proxy and a durable financial power of attorney. This enabled their family to step in and make medical and financial decisions on their behalf. Good estate planning can make hard times a little more manageable, even for young and healthy people.

What Happens without These Documents?

Without these essential documents, your family might face delays in managing your affairs. Courts could appoint someone to make decisions for you. While this may work out, there’s no guarantee a court-appointed agent’s views would align with your wishes. Being unprepared can make difficult times even more stressful and challenging.

How can Young Adults Get Started?

Creating these documents is easier than you might think. Here are some steps to get started:

  • Talk to Your Parents or Guardians: Discuss your plans and get their input on who your healthcare proxy or financial power of attorney should be.
  • Consult an Attorney: Seek advice from an estate planning attorney who can draft these documents to ensure they meet legal requirements and accurately reflect your wishes.
  • Store Documents Safely: Keep your documents in a safe place, and make sure that your designated proxies know where to find them.
  • Review Regularly: Life changes might require updates to your documents. Events such as moving to a new state, getting married, or having a child should prompt you to revisit your documents.

Lay the Foundations of a Bright Future

If you’re a young adult or a parent of one, now is the time to start thinking about these important legal documents. Our law firm focuses on estate planning and can help you create a comprehensive plan suited to your wishes. Contact us today to request a consultation and get started.

Key Takeaways

  • Young People Need Estate Planning: Having your documents in order can make hard situations easier.
  • Key Estate Documents for Young People: HIPAA Authorization, a durable financial power of attorney, and preneed guardian designation are invaluable.
  • The Importance of a Will: Young parents need wills to provide for their children’s future in case the worst happens.

Reference: Financial Planning Association (Oct. 2023) “Essential Estate Planning for Young Adults”

What Happens When Executors Keep Beneficiaries in the Dark?

A couple who never had children created a will, leaving their six nieces and nephews equal shares of their estate upon their deaths. When the uncle died, the aunt remarried years later but never changed the will, except for giving her second husband a life tenancy in the family home. A recent article from Market Watch asks if what happened next is right: “My late aunt gave her husband a life tenancy in her home—but her attorney won’t even let us see the will. Is this a bad sign?”

The problems began when the aunt’s attorney told the nieces and nephews that they were responsible for the taxes and property insurance while the life tenant lived in the home. The nieces and nephews had never seen a copy of the will, so they are unsure of their responsibilities as remaindermen. Nothing in the estate needed to go through probate, so the aunt’s will was not available to beneficiaries through the county court.

This case illustrates several important estate planning points. First, an executor of a will (or an administrator of an estate) is required to keep beneficiaries “reasonably informed” of the will’s contents after probate. It seems reasonable for the nieces and nephews to be able to see the will.

In most cases, the person given the life tenancy is responsible for paying taxes and property insurance and for the general upkeep of the residence. Any other arrangement is unusual, so the nieces and nephews are right to want to see the will.

The life tenant has rights, including the ability to rent out the property. However, they can’t do anything to decrease the house’s value. It’s important to know that elderly people may be unable to apply for Medicaid because they live in the house this way.

If it has been months since the person died and there hasn’t been any communication from the executor, a few different scenarios are possible. It may be that the executor doesn’t know they are required to keep beneficiaries informed. However, it’s also possible that the executor is engaging in illegal behavior.

In most states, the executor is responsible for providing beneficiaries with a complete inventory and appraisal of all the estate’s assets. Depending on the state, probating an estate may take more than six months, and creditors have a certain number of months to file a claim.

Suppose the beneficiaries wish to replace the executor. In that case, they can do so by speaking with an estate planning attorney and being prepared to go to court and prove the executor is either self-dealing, incompetent or has a conflict of interest.

However, once the will is probated, it will become part of the public record and must be filed in probate court. Depending on the jurisdiction, the court will give the beneficiaries the right to access the will.

The best option for the nieces and nephews is to consult an estate planning attorney to explore their options. If they live in a different state, a local estate planning attorney can recommend someone in their aunt’s jurisdiction to help.

Reference: Market Watch (April 28, 2024) “My late aunt gave her husband a life tenancy in her home—but her attorney won’t even let us see the will. Is this a bad sign?”

Caregiving and Estate Planning Provides Peace of Mind for All Generations

If your goal is to keep the farm, ranch, or small business in the family, planning, including estate planning and caregiving, is the number one strategy to making it happen. Families may dissolve the farm or business without advance planning to pay for long-term care expenses. A recent article from AgWeek, “Caregiving plans can provide peace of mind for farming and ranching families,” explains what needs to be done.

Part of the issue is that most ranchers and business owners won’t qualify for Medicaid because they own a significant asset. Having to sell off something they’ve worked their entire lives to build is often a result of no planning.

If you have a long-term care insurance policy, it needs to be carefully reviewed to determine what conditions need to be met for benefits to be paid. For example, most policies have a “waiting period,” so you’ll need to plan how to pay for caregiving during the months before the policy kicks in.

There’s also confusion about the difference between Medicare and Medicaid. Medicare is health insurance for medical expenses, while Medicaid is usually used for long-term care and caregiving needs. However, Medicaid is a needs-based program. An estate planning attorney can help the family determine what needs to happen in advance, whether the goal is to protect the farm, ranch, or small business while helping the aging parent become eligible for Medicaid.

Estate planning includes planning for incapacity, which can occur at any time but is more likely as we age. Suppose the individual hasn’t completed a power of attorney, healthcare power of attorney, and other medical directives. In that case, the family will need to go to court to obtain conservatorship or guardianship to take over the person’s financial matters and make healthcare decisions on their behalf. An estate planning attorney can help the family prepare the documents and create a plan.

Having an estate plan in place is also another means of protecting the family’s assets from elder abuse. Everything needs to be documented, and records need to be well-organized so every family member knows where documents are, where assets are and the plan for the inevitable events of aging.

Meeting with an estate planning attorney to create the last will and testament, power of attorney and all other planning documents can minimize the stress and costs involved. Without planning, everything becomes far more complicated, costly and stressful for all concerned.

Reference: AgWeek (May 14, 2024) “Caregiving plans can provide peace of mind for farming and ranching families”

Crafting Your Legacy: Exploring the Charitable Remainder Trust as a Stretch IRA Alternative

The Stretch IRA was once a popular estate planning tool. Not only could beneficiaries receive inherited IRA funds, but they’d also keep tax benefits. However, recent changes brought about by the SECURE Act have ended this strategy. As a result, those whose retirement plans included a Stretch IRA now need to find an alternative. If you were planning to use a Stretch IRA, Kiplinger makes the case that you should consider a Charitable Remainder Trust (CRT) instead.

What Happened to the Stretch IRA?

A Stretch IRA allowed non-spouse beneficiaries to withdraw slowly from inherited retirement accounts. This minimized taxes, maximized growth and provided long-term security. However, the SECURE Act now requires beneficiaries to empty inherited IRAs within ten years. This increases exposure to taxes and eliminates the Stretch IRA as a long-term option for asset growth and inherited income.

If this change impacts you, there are alternatives available. One of the best options may be the Charitable Remainder Trust, which offers a combination of tax benefits and long-term income.

How can a Charitable Remainder Trust Help?

A Charitable Remainder Trust (CRT) offers a new path to those who want to give long-term income to their beneficiaries. With a CRT, assets are transferred to the trust, providing beneficiaries with a steady income stream for a set period. Once this term ends or the beneficiary dies, any remaining assets are donated to the chosen charity. The benefits of a Charitable Remainder Trust include:

  • Reduced taxes: A CRT reduces the deceased’s taxable estate and provides tax deductions for the charitable gift.
  • Long-term income: Beneficiaries receive a steady payout. It lasts for a set number of years or their lifetime.
  • A philanthropic legacy: When your CRT is done supporting heirs, it will leave you with a final philanthropic legacy.

Are there Caveats to CRTs?

While CRTs provide an alternative to the Stretch IRA, they have limitations. Administration can be complex, and not all asset types are suitable for inclusion in a CRT.  Beneficiaries might also receive less total income than other estate planning options. Before you open a CRT, you’ll need to consider whether it’s the right choice for your family.

Build an Estate Plan Tailored to Your Needs

All estate planning strategies have cases where they’re suitable and cases where they aren’t. Doing right by your family means understanding the options available, weighing them and choosing correctly. Estate planning is complex. However, that’s what we’re here for. Contact our estate planning team to determine if a Charitable Remainder Trust suits you. We’ll walk you through the pros and cons, provide alternatives and help you develop a customized estate plan.

Schedule a consultation today and take the first step toward a legacy that reflects your values and supports your loved ones.

Key Takeaways

  • The SECURE Act: With new limitations on the Stretch IRA, elderly Americans should consider alternatives.
  • Charitable Remainder Trusts: Secure tax benefits on long-term income to loved ones while benefiting charities.
  • Tax Advantages: CRTs allow donors to cut their taxable estate.

Reference: Kiplinger (April 2024) “Charitable Remainder Trust: The Stretch IRA Alternative | Kiplinger”

Estate Planning Checklist to Keep You Focused

The estate tax exemption many taxpayers enjoy is scheduled to sunset at the end of 2025. According to a recent article from Kiplinger, “13 Smart Estate Planning Moves,” this large exemption had many people thinking they didn’t need to worry about estate taxes or other ways their legacies could be threatened.

Here are steps to discuss with your estate planning attorney:

Rethink your IRA investment strategy. With limited exceptions, inherited accounts must be emptied within ten years of the original owner’s death.

The age for RMDs (Required Minimum Distributions) rose to 73 in 2023 and will increase to 75 in 2033. You could take a voluntary distribution and convert it to a Roth IRA if you’re younger. Taxes are paid when you make a contribution, grow tax-free and there are no taxes on withdrawals. It’s a good deal, depending on your circumstances.

Use the annual gift tax exclusion to make gifts to as many people as you wish, up to $18,000 per person in 2024. A recent change to the 529 College Savings Account rules lets a gift giver fund five years of gifting into one account.

Pay medical or education expenses for someone else. Just remember to make checks out directly to the educational institution or care provider, not to the person.

Set up an irrevocable trust for a spouse, specifically a Spousal Lifetime Access Trust (SLAT), which lets you name a spouse as the beneficiary and children or grandchildren as remainder beneficiaries. Your spouse can tap it for health, education and living expenses.

Preserve assets with a bypass trust, funded at the first spouse’s death. The surviving spouse has access to the funds, with expenses for health, education, maintenance and support generally approved.

If you need to protect assets from creditors or litigation, a domestic asset protection trust allows you to keep funds out of your estate while you can be a beneficiary.

Use a revocable trust to manage assets. You won’t get any estate tax breaks. However, it’s easier for a successor trustee to take charge in case of incapacity.

Plan for Medicaid by transferring assets to a Medicaid Asset Protection Trust. MAPTs are state-specific, so consult with an experienced estate planning attorney.

Get your assets organized. If possible, consolidate accounts with one institution. This will keep your estate settlement less complicated and, therefore, less costly.

Reference: Kiplinger (May 9, 2024) “13 Smart Estate Planning Moves”

Search
Join Our eNewsletter

Recent Posts
Categories
estate planning and elder law
Email/Social Media
Facebook-square Twitter-square Linkedin Youtube Blog
Quick Links
Powered By

Copyright © Lambros Law Office LLC. All rights reserved. Some artwork provided under license agreement.