Should You Consider Planned Giving?

Estate planning presents many opportunities for philanthropically minded people, and you don’t have to be a millionaire to be a philanthropist. One way to ensure that your assets are given to causes you care about is addressed in the article “What Is Planned Giving?” in Financial Advisor.

Planned giving means donating assets to a nonprofit in a structured way during your lifetime or as part of an estate plan. The assets can be cash, securities, real estate, life insurance proceeds, funds from retirement accounts, or assets held in trusts.

Why make a planned gift? Planned giving is a means to create a legacy, ensuring something you value continues after you are gone. This can be a large donation to fund building construction, a student scholarship, or an endowed program. It can also take the form of an annual gift to the organization.

The benefit of a planned gift is it allows you to structure assets to accomplish other things, like providing for beneficiaries. Certain charitable trusts can provide income to spouses, children, or grandchildren over decades or in a lump-sum payment.

Creating a planned giving program should align with your overall estate plan to achieve optimal results in growing wealth and minimizing tax liabilities. Doing so requires discussing your charitable intent with your estate planning attorney, determining the best way to do this and then drafting wills, trusts and any other instruments to work together.

The development office of any nonprofit organization will be familiar with planned giving and may even have someone on their team who focuses on planned gifts. They are usually happy to receive donations this way and will also know about different types of gifts and tax-efficient strategies.

Planned giving can also be used with a tax-advantaged vehicle like a donor-advised fund, which owns assets specifically for use by a charity.

Consider why you want to make a charitable gift and what you hope to accomplish. You and your estate planning attorney can then map out a strategy to benefit you, your loved ones and the nonprofits of your choice, demonstrating your priorities and creating a legacy.

Reference: Financial Advisor (June 1, 2024) “What Is Planned Giving?”

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”

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”

Estate Planning and Your Second Home: What Should You Know?

Many people dream of owning a cabin or a sunny beach house away from their homes. While these dreams are beautiful, buying a second home isn’t as simple as picking a new getaway. Your second home can increase your tax burden more than your first. There are also unique tax implications to keep in mind. According to Central Trust, understanding the strings attached to a second home is a must.

Will You Pay More Property Tax and Mortgage Interest?

If you already own one home, purchasing a second means doubling up on property tax bills. Your deductions for state and local taxes are also capped at $10,000. State taxes on your primary home often reach that limit on their own. As a result, a second home may increase your tax liability much more than you’d expect. While you can deduct mortgage payments on your second home, it’s limited to a combined total of $750,000 for both residences.

Does Renting Affect Your Taxes?

There are tax benefits if you plan to rent and limit personal use to 14 days or 10% of rental days. Doing so allows you to deduct utilities, maintenance and improvement costs as you would for any other rental property. However, be careful – renting to relatives at market rate still counts as personal use.

What About Capital Gains Tax?

When selling your primary residence, you can usually exclude a portion of the gains from taxes. However, this isn’t the case with a second home. Your vacation house is taxed as an investment property, which means capital gains can go up to 23.8%.

However, there’s a way to avoid paying capital gains tax on your second home. You may avoid capital gains tax if you live in it as your primary residence for at least two of the five years before you sell. Considering the average home price in America today, a lower tax rate can amount to impressive savings.

On the other hand, lost rental revenue or an increased cost of living could detract from these savings. Weigh the costs and benefits before choosing your tax management strategy.

How Important Is Record Keeping?

Maintaining solid records is crucial if you’re renting out a second home. If the IRS audits your return and you can’t provide evidence, you could face extra taxes and penalties. Keep receipts, bills and documents detailing any expenses related to the property. If you plan to avoid capital gains tax by living in the home, keep proof of your residence and travel during the time in question.

Be Real-Estate Smart with Our Help

The thrill of buying a second home should not overshadow the importance of thorough estate planning. Consult a tax professional or financial advisor to avoid costly mistakes.

Our law firm is dedicated to helping you plan your estate and minimize taxes, especially when second homes are involved. Schedule a consultation with us today to build a strategy tailored to you.

Key Takeaways

Double the Taxes: Owning a second home brings a second set of property tax and mortgage interest bills.
Rental Benefits: Renting out your vacation home could offer tax deductions.
Capital Gains Tax: Selling a second home could subject you to up to 23.8% capital gains tax. Living there for two of five years before selling can help avoid this.
Record Keeping is Essential: Proper documentation of expenses and rental income is crucial to avoid penalties in case of an IRS audit.
Consult an Advisor: Seek guidance from tax or estate planning professionals to create a sound plan and minimize tax implications.

Reference: Centraltrust (March 2024) “Second Homes & Tax Implications – Central Trust Company”

Elvis Presley’s Estate Planning Mistakes: Lessons for Us All

Even the King of Rock ‘n’ Roll wasn’t immune to estate planning mistakes. Elvis Presley passed away in 1977 with a net worth of around $5 million. Nevertheless, poor estate planning resulted in significant financial challenges for his daughter, Lisa Marie Presley, who inherited the estate at age 25. Unfortunately, the saga of estate mismanagement continued with Lisa Marie’s untimely death in January 2023. This article examines the lessons we can learn from these oversights.

Why Did Elvis’s Estate Plan Fail?

Over-Reliance on a Will

Elvis relied on a basic will instead of a more comprehensive estate plan, such as a trust. While wills provide instructions for asset distribution, they don’t protect beneficiaries from probate. This led to significant legal costs and delays, reducing the estate’s value. Furthermore, only a fraction of his estate remained after creditors, unscrupulous business partners and the IRS took their share. Kiplinger details how these mistakes haunted his daughter, Lisa Marie Presley.

Excessive Spending

Elvis was generous and free spending. However, his estate planning didn’t account for this. As a result, much of his inheritance went to creditors rather than his daughter. However, creditors weren’t the only ones claiming what Elvis left behind. The most significant loss was to the IRS, which claimed that the estate tax was worth double the value of Elvis’ estate.

Trusting the Wrong People

Elvis trusted Thomas Parker, better known as Colonel Parker, with business management. However, Parker was a Dutch illegal immigrant with a history of mental instability. The Army discharged him following a “psychotic breakdown,” and he had only served as a private. Parker’s business deal entitled him to 50% of Elvis’ profits and enabled him to sell Elvis’ song catalog. He kept most of the profits, depriving the family of any royalties.

Lack of Estate Planning

Between the IRS, creditors and Parker, the woes Elvis left his loved ones have one thing in common: They were avoidable estate planning mistakes. While few people trust their will to Colonel Parker, many leave behind a will that doesn’t protect their loved ones. Advanced estate planning strategies, such as the creation of trusts, are much more reliable than a simple will.

Can You Avoid Similar Estate Planning Mistakes?

A will is better than nothing, but it’s only the start. Develop a comprehensive estate plan that includes a trust and a power of attorney, and follow these steps:

Plan for Estate Taxes: Many ways exist to reduce estate taxes. Consider strategies like gifting assets and establishing trusts.
Maintain Liquidity: Set aside liquid assets to cover immediate family needs and creditor expenses.
Regularly Review and Update Plans: Life changes, and your estate plan should too. Ensure that your estate is set up to provide your loved ones with what you wish for them.
Consult with a Reputable Estate Advisor: Estate law is complex. Consulting with an estate planning professional can help you avoid Elvis’ mistakes.

Take Action to Avoid Estate Planning Mistakes

Don’t let your loved ones face unnecessary financial difficulties. Develop a comprehensive estate plan with the help of our estate planning attorneys.

Key Takeaways

Elvis Presley’s Estate Planning Mistakes: Elvis relied on a basic will and trusted people he shouldn’t. Consequently, his wife Priscilla and his daughter Lisa Marie Presley only received a fraction of his estate. If the King of Rock ‘N Roll needed a thorough estate plan, we all do.
Avoid Estate Planning Pitfalls: A comprehensive plan centered on trusts to protect your loved ones avoids many common mistakes.
Contact a Trustworthy Professional: Elvis’ business partners sold many of his assets for personal benefit. Rely on a reputable estate planning attorney to give your family the best opportunities.

Reference: Kiplinger (May 17, 2023) “Five Estate Planning Lessons We Can Learn From Elvis’ Mistakes”

Does Your Retirement Plan Include Moving to a Lower Tax State?

People have long moved from high-tax to low-tax states. However, this movement increased during the pandemic and continues today. The response from high-tax states has become aggressive, especially in cases where people maintain a home in two states and try to pay taxes only in the less costly state. A recent Forbes article issues a clear warning: “Beware The Tax Traps Spring On Those Who Move In Retirement.”

These states levy a tax on income, estate and sales taxes based on where people make their legal domicile. However, determining where you live isn’t quite as cut-and-dried as people think. Tax departments in high-tax states have amped up their residency audits. When the system sees someone who once filed an income tax return as a full-time resident begins filing as a part-time resident or doesn’t file, the state wants to ensure that it’s not missing out on any revenue.

A residency audit is conducted. It may consist of a questionnaire asking about where the person lives, asking them to provide information about their lifestyle and providing details about the property they own in both states.

An aggressive state will search property records and other public records for evidence of ongoing connections to the state. Social media has become part of this information gathering, no matter how private people may set their profiles.

If you’ve moved for retirement or enjoy the benefits of living in two or more states, you’ll need to choose a state and prove your legally established residence in that state. Ideally, you’ll do this long before the residency audit arrives.

Did you already receive a letter from a state tax authority asking questions? Chances are the state has already begun investigating your status. The letter might include a questionnaire, an interview request, or both.

If you haven’t yet moved, consider how you’ll respond to these questions:

Where do you vote?
Where are your cars, boats, or other vehicles registered?
Do you belong to a house of worship, and if so, where is it located?
Do you have an estate plan, and what address does it show?
Where do you own property, and how much time do you spend at each location?
Do you belong to any social clubs – country clubs, bowling leagues, gyms, or community groups?
If you own a business or are an employee, where is your business or employer located?

You’ll need to demonstrate where you live and whether you’ve truly cut ties with your prior state of residence. A final word of advice: don’t go into a residency audit unprepared or unrepresented. The possibility of paying taxes in two states should motivate you to make any necessary changes.

Another detail to consider when moving to retirement is that an estate plan made in one state may not be valid in another state. A local estate planning attorney in your new domicile should be consulted to review your will, power of attorney, healthcare directives and other state-specific documents to ensure they will be effective in your retirement home.

Reference: Forbes (April 23, 2024) “Beware The Tax Traps Spring On Those Who Move In Retirement”

Prepare Now for Coming Changes to Estate Taxes

Anyone who wants to leave their estate to heirs needs to plan now so their wishes will be followed and, equally importantly, to minimize their estate’s tax liability. A recent article from The San Diego Union-Tribune asks, “Are you prepared for changes to estate tax laws? Here’s what you need to know.”

Because of the Tax Cuts and Job Acts of 2017, taxpayers who die in 2024 can pass up to $13.61 million federal tax-free to their heirs. In 2025, this amount will be adjusted for inflation. On January 1, 2026, the federal basic exclusion amount reverts to $5 million indexed for inflation. Many experts expect this to adjust to $6.5 to $7 million.

When calculating the total value of one’s estate, the IRS looks at all taxable gifts made while you are living, and all assets transferred upon your death. This includes the value of your home and its contents, retirement and investment accounts, life insurance not owned by an irrevocable trust, cash, annuities, boats, vehicles and bank accounts.

Estate planning must include tax planning. With the right planning, preserving the 2024 and 2025 higher exclusions may be possible through a lifetime gifting program. Let’s say the exclusion amount in 2026 is $7 million. You’d have to gift more than $7 million before January 1, 2026, to preserve the current exclusion amount.

Two years ago, in April 2022, the Treasury and IRS published Proposed Regulation Section 20.2010-1(c)(3) to limit certain types of gifts from qualifying for the current exclusion and restrict benefits of certain types of gifts if they were made within 18 months of the date of death. This regulation is still proposed and not final. However, you and your estate planning attorney must remember it during the estate planning process.

If making large, multi-million-dollar gifts is not possible without constraining the taxpayer’s lifestyle, there are other gifting strategies to use to take appreciating assets out of the estate over time. One way to do this is to make annual exclusion gifts every year. These are gifts that pass entirely tax-free. In 2024, a taxpayer could gift up to $18,000 per person to an unlimited number of people without paying any gift taxes.

Gifts to 501(c)(3) charities of any amount can be made tax-free with no gift or estate tax. This includes gifts made while you are living or after you have passed.

It is also permissible to pay an unlimited amount for tuition for an unlimited number of people, if the payment is made directly to the educational institution. These gifts may not include room, board, or fees. Similarly, one person can pay for another person’s medical expenses if the payment is made directly to the healthcare provider.

There are many ways to prepare for the coming changes to tax laws. What is right for one person may not be right for another, as everyone’s circumstances are unique. Discussing how to prepare for these changes with your estate planning attorney should take place soon, as it takes time to work out the details of a new estate plan and you can be sure estate planning attorneys will be very busy in 2025.

Reference: The San Diego Union-Tribune (April 30, 2024) “Are you prepared for changes to estate tax laws? Here’s what you need to know”

How Parents and Adult Children Talk about Money and Aging

If you thought it was hard to talk with your children about sex, try talking with them about money and death. Americans generally steer clear of talking about death and money. Nevertheless, these conversations are necessary, according to a recent article, “Let’s talk about money and death: Why aging parents and their adult children should have ‘the talk,’” from MarketWatch. Sharing information about finances and end-of-life wishes can prevent resentment or stress before a crisis and gives everyone involved peace of mind.

If an estate plan has been created and financial and tax planning accomplished, but the adult children aren’t told a plan exists, there may be general worry over decades as parents age. What will happen when they die? Will the siblings know what to do? Who will be in charge? A family meeting to discuss the plan and the parents’ wishes can address these issues.

This is especially important for members of Generation X (Americans born between 1965 and 1980). This cohort has the most assets, may deal with a significant wealth transfer and often cares for its children and aging parents.

Start by putting together an agenda for the family meeting. Understand that there may need to be more than one meeting, since there is so much ground to cover. Long-term Care planning, the current status of the parent’s living situation and plans for a possible move to a continuing care facility are just the start. Do the parents have an estate plan and documents like a Power of Attorney, Healthcare Proxy, Advanced Care Directive and the like?

Money can be an emotional conversation, especially if there are disparities in the sibling’s financial status. Parents are often extremely reticent to share information about their net worth, sometimes because they don’t want their children to lose incentive to work, and in other situations because they are embarrassed about not having enough money to sustain them through their later elder years.

Having a neutral third party in the meeting, like an estate planning attorney, can be helpful when emotions are running high. Holding a family meeting in a law office may sound formal. However, having a professional on hand who can clarify estate, financial and tax matters may help keep the conversation focused. If the estate planning attorney works with a therapist or geriatric specialist who facilitates family discussions, they may be able to help the family move past the emotions of anticipated grief into productive, concrete planning.

Confronting the realities of mortality and money is difficult even in the best of circumstances. Nevertheless, with the support of skilled professionals, a focus on care and the creation of a no-judgment zone, the family will be able to help each other as they prepare for the future.

Reference: MarketWatch (March 23, 2024) “Let’s talk about money and death: Why aging parents and their adult children should have ‘the talk’”

Estate Planning Strategies to Care for Aging Parents

Our parents are pillars of support along our journey through life, guiding us through the ups and downs with unwavering love and care. As our parents age gracefully, we can choose estate planning strategies that support them along their journey to retirement and beyond. These strategies address long-term care and living arrangements for our parents’ well-being and peace of mind. We explore why caring for aging parents in estate planning is necessary to preserve their dignity, security and legacy.

Comprehensive Estate Planning Strategies to Care for Aging Parents

Modern estate planning goes beyond wealth protection to create a roadmap for the future. It encompasses health care decisions, financial management and a delicate balance between independence and security. Kiplinger’s article, “Estate Planning for Your Aging Parents: A Delicate Balance,” helps us discuss estate planning strategies to care for aging parents. An estate plan with these strategies provides clarity and guidance to loved ones on aging parents’ wishes, while retaining control for aging parents over financial and health-related matters.

Estate Planning for Aging Parents – How to Balance Independence and Care

Balancing a parent’s independence and care as they age is challenging. Declining cognition and physical health increase the need for legally documented healthcare wishes and appointed representatives to manage financial affairs.

Aging adults value autonomy and may be reluctant to relinquish control over their daily lives. Open and honest communication is the key to finding this balance. Conversations should be encouraged about medical wishes and future goals with an aging parent or parents. An estate plan can then be created that honors their decisions.

Consider how a trust can protect a parent’s wealth, with a trustee overseeing their estate’s administration and asset distribution. A will is another vital estate-planning component, naming beneficiaries to simplify the distribution of assets after a parent passes away.

Plan for long-term care and Medicaid. An irrevocable trust can preserve your parents’ assets during Medicaid approval, while income-producing investments supplement their income.

Incapacity Planning to Respect an Aging Parent’s Health Care Preferences

As parents age, their healthcare needs may become more complex, necessitating careful planning for incapacity. Advanced directives and health care proxies empower parents to designate trusted individuals to make medical decisions, ensuring that their preferences for medical treatments and end-of-life care are honored with dignity and respect.

Tax Planning: Minimizing Burdens for Heirs

Tax planning is another central element in a comprehensive estate plan. Aging parents passing their wealth to the next generation look for ways to minimize the tax burden on their beneficiaries. Gifting, establishing trusts and utilizing tax-advantaged accounts can reduce taxes, maximize inheritance and transfer their wealth more efficiently.

Key Takeaways:

Aging Parents: We can choose estate planning strategies that support aging parents in their journey to retirement and beyond.
Balance Independence and Care: Encourage conversations about medical wishes and future goals with an aging parent or parents. An estate plan can then be created that honors their decisions.
Incapacity Planning: Advanced directives and health care proxies empower parents to designate trusted individuals to make medical decisions,
Tax Planning: Gifting, establishing trusts and utilizing tax-advantaged accounts can reduce taxes, maximize inheritance and transfer their wealth more efficiently.

Conclusion

Caring for aging parents in estate planning is practical and necessary. It is also a profound expression of love and gratitude. Embracing this responsibility with compassion, empathy and diligence helps our parents navigate this stage of life with dignity, security and peace of mind.

If you’re ready to embark on this estate planning journey for your aging parents, our experienced legal team guides you every step of the way. Contact us today to learn more and confidently start planning.

Reference: Kiplinger (February 2024) “Estate Planning for Your Aging Parents: A Delicate Balance.”

Estate Planning Blog Articles

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

What Happened to the Stretch IRA?

How can a Charitable Remainder Trust Help?

Are there Caveats to CRTs?

Build an Estate Plan Tailored to Your Needs

Key Takeaways

Will You Pay More Property Tax and Mortgage Interest?

Does Renting Affect Your Taxes?

What About Capital Gains Tax?

How Important Is Record Keeping?

Be Real-Estate Smart with Our Help

Key Takeaways

Why Did Elvis’s Estate Plan Fail?

Over-Reliance on a Will

Excessive Spending

Trusting the Wrong People

Lack of Estate Planning

Can You Avoid Similar Estate Planning Mistakes?

Take Action to Avoid Estate Planning Mistakes

Key Takeaways

Comprehensive Estate Planning Strategies to Care for Aging Parents

Estate Planning for Aging Parents – How to Balance Independence and Care

Incapacity Planning to Respect an Aging Parent’s Health Care Preferences

Tax Planning: Minimizing Burdens for Heirs

Key Takeaways:

Conclusion

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