A common estate planning misconception harbored by many people is the idea that you lose direct personal control over assets you sign over to a trust. Since they want to use the resources if necessary, they instead create a simple will to satisfy their estate planning needs. In this post, we will dissect this assumption so that you can make informed decisions. Irrevocable Trusts Some trusts that cannot be revoked once they have been established. If you create an irrevocable trust, you … [Read more...] about Do You Lose Control of Assets in a Trust?
As with many things, you can approach estate planning in more than one way. Some people do the bare minimum, while others see a more comprehensive picture. The steps you take during the planning process will determine how quickly and efficiently your loved ones receive their inheritances. With this in mind, let’s take a look at the role of the estate administrator. Executor or Trustee If you decide to use a will as your asset transfer vehicle, you will name an executor or personal … [Read more...] about Leave Instructions for Your Estate Administrator
When it comes to the law, the idea of a common law marriage can be confusing. If you are like many people, you have probably heard of common law marriage and have some idea of what it is. For example, many people have heard that a couple living together outside of marriage becomes common law married after living together for seven years. Other people might have heard five years, nine years, or other variations on this concept, but it basically involves automatically becoming common law married … [Read more...] about Understanding Estate Planning – Common Law Marriage and Estate Planning in Kansas and Oklahoma
If you are in the process of creating, or adding to, your estate plan, you will need to decide what to do with your estate planning documents when the plan is complete. Like most people, you probably keep other valuables in your safety deposit box, making that an obvious choice. The Oklahoma City estate planning attorneys at Parman & Easterday explain why your safety deposit box is not the safest place for your estate planning documents. Your Estate Planning Documents In many … [Read more...] about Why Your Safety Deposit Box Is Not Safe
Before you sit down to create your initial estate plan, it is always a good idea to learn more about the process by talking to an experienced estate planning attorney. Your estate planning attorney can also help explain the process and make you feel less intimidated. Before you even get to your scheduled initial consultation, however, there are things you can think about that will ultimately help your first discussion with your estate planning attorney to be more productive. The Oklahoma City … [Read more...] about 5 Things to Consider When Creating Your Estate Plan
A well-constructed estate plan will not strictly focus on the facilitation of postmortem (death) asset transfers. It is also important to address the eventualities that you may face toward the end of your life. We call it life planning. If you take the right steps in advance, you can outline your choices in various different ways. Incapacity Among Elders This is not a very pleasant subject to consider, but it is a fact of life that everyone should accept. Once you reach the age of 67, your … [Read more...] about Don’t Overlook Incapacity Planning
People often have questions about the way that inheritances are taxed, and many of them assume that you would have to report a bequest when you file your income taxes. In fact, even though it may be a bit surprising, this is not the case at all. Inheritances are not considered to be taxable income by the Internal Revenue Service or state tax agencies. This includes direct inheritances and insurance policy death benefit payouts, at least for now. Another piece of good news pertains to the … [Read more...] about How Are Inheritances Taxed?
You will become eligible for Medicare when you reach the age of 65 if you have worked and paid taxes for at least 10 years. Medicaid on the other hand is a government health insurance program that is available to people with significant financial need. The United States Department of Health and Human Services tells us that seven out of every 10 seniors will eventually need living assistance. About 35 percent of them will eventually reside in nursing homes. Since Medicare was established to … [Read more...] about Key Medicaid Facts and Figures
Estate planning is often looked upon as a one-way street. The idea is that you determine how you want to distribute your assets, and that’s the long and short of it. You can take this approach, but if you do, loved ones may pay the price. There are various different ways to get assets into the hands of your heirs, and the best method will vary based on the circumstances. A transfer device that is perfectly acceptable for one individual may not be right for the next. This definitely … [Read more...] about Special Needs Planning Can Protect Benefits
A lot of people harbor misconceptions about certain aspects of the estate planning process. This is very common when it comes to the way that many folks think about trusts. Let’s look at some of the myths that circulate so you can go forward with a fresh perspective. Trusts Are Only For Very Wealthy People Individuals that have estates that are valued at more than $11.58 million are exposed to the federal estate tax. These folks do use trusts to gain tax efficiency. However, there are … [Read more...] about Debunking Myths About Trusts