Estate Planning Blog

As an estate planning attorney, I frequently encounter questions regarding the Generation-Skipping Transfer Tax (GSTT). This tax, often overlooked, plays a critical role in the strategic planning of estate transfers. In this article, I aim to demystify the GSTT and provide practical tax tips to those navigating this complex area. Understanding the Generation-Skipping Transfer Tax The Generation-Skipping Transfer Tax is a federal tax on transfers of property that skip a generation. This tax was introduced to prevent families from circumventing estate tax by transferring wealth directly to grandchildren or other “skip persons.” The Mechanics of GSTT The GSTT is levied…

Beyond being an act of generosity, gifting ensures that a significant portion of your wealth is preserved rather than diminished by taxes.

Estate planning is a crucial process for everyone. However, it becomes particularly imperative for our elderly parents. As they advance in age, creating a complete estate plan ensures that their wishes are honored, and their affairs are in order for the inevitable. This guide will walk you through the essential steps and documents involved in estate planning for aging parents, helping you to make financial and medical decisions that are aligned with their desires. Understanding the Importance of an Estate Plan for Your Elderly Parent Estate planning is not merely about distributing assets. It’s a comprehensive approach to managing an…

In recent years, particularly following the onset of the COVID-19 pandemic, there has been a marked surge in life insurance applications, reaching a 38-year high in 2021, as reported by LIMRA. This trend underscores a growing recognition of life insurance’s value beyond its traditional role. As Kara Sherman, CFP®, highlighted in her Kiplinger article dated September 09, 2023, life insurance is more than just a safety net following one’s demise; it’s a versatile financial tool for living benefits and legacy planning. The Traditional Role of Life Insurance Financial Security for Dependents At its core, life insurance protects those who…

Leaving a legacy through charitable bequests is not just for the wealthy. Sharon Waters highlighted in her AARP article that anyone can make a lasting impact by including charities in their estate plan. This article explores various strategies to do so effectively. Understanding the Impact of Charitable Bequests Charitable bequests are instructions to allocate assets to charitable organizations within a will or estate plan. These bequests can create a lasting impact, supporting causes and organizations that matter to you long after you’re gone. Even modest bequests can significantly contribute to a charity’s mission. Assessing Your Options for Charitable Giving There…

Elder law attorneys see firsthand the financial strain that nursing home expenses can place on families. With the rising costs of long-term care and the complexities of becoming eligible for Medicaid benefits, it’s crucial to understand how to protect your nest egg. This article sheds light on the financial strain many Americans face regarding elder care costs. Using planning methods to preserve your hard-earned assets while ensuring quality care for yourself or your loved ones by working with an experienced elder law attorney is crucial. Start the discussion early with your spouse or family about ways to protect your assets…

Trusts are common. However, there are numerous variations, and there is still considerable confusion about what is legal and what is not.

The sweeping tax overhaul enacted in 2017, known as the Tax Cuts and Jobs Act (TCJA), provided a number of income and estate tax reductions and changes.

For taxpayers who stress over annual Required Minimum Distributions and are also inclined to charitable giving, Qualified Charitable Distributions or QCDs have been a useful tool to accommodate both relief over federal income tax angst and the desire to donate.

Understanding marital trusts is crucial for couples looking to secure their financial future and provide for the surviving spouse tax-efficiently. This article is a guide to marital trusts, how they work and their advantages and disadvantages. With the potential to safeguard assets and ensure that they reach the intended beneficiaries, marital trusts can be an effective part of a comprehensive estate plan, particularly for those in a second marriage or a blended family. What Is a Marital Trust? A marital trust is a type of irrevocable trust and is crafted to benefit…