Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the taxable estate. But there are two potential traps in this. The prior article examined the first trap, the three-year lookback of Section 2035. This article will examine how the Transfer for Value rule can make life insurance taxable. Read on to learn more about how to avoid the income taxation of life insurance. by Steve Hartnett This is the second in a … [Read more...] about Removing Life Insurance Without Triggering the Transfer for Value Rule
Removing Life Insurance from the Taxable Estate
Life insurance is included in the taxable estate typically. A trust is a great way to remove the value of life insurance from the estate. But, there are two potential traps in this. by Steve Hartnett This is the first in a two-part series of articles regarding life insurance and removing it from the taxable estate. This first article examines why life insurance is in the taxable estate and how to remove it. The second article will examine the application of the “Transfer for Value” … [Read more...] about Removing Life Insurance from the Taxable Estate
Leaving Assets Can Be Tricky – Part 3
Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. For example, if you have a beneficiary with special needs, you must take special care. July 28, 2020 by Steve Hartnett 0 Comments Maybe you grew up without much. You worked hard. You earned a good education. You succeeded in life even though the streets weren’t paved with gold where you grew up. In fact, maybe you grew up in a very impoverished, oppressed … [Read more...] about Leaving Assets Can Be Tricky – Part 3
Is DIY Estate Planning Effective?
We live in somewhat of a “microwave society” that is based on instant gratification. You can find out how to do just about anything on the Internet, and a lot of people like to look for shortcuts. This enters the picture when it comes to estate planning. Boilerplate Legal Documents There are websites that sell downloads and worksheets that you can use to create legal documents, including last wills and trusts. They try to float the idea that anyone can create an estate plan without any legal … [Read more...] about Is DIY Estate Planning Effective?
IRAs and Your Inheritance Plan
An individual retirement account can help you enjoy your golden years to the fullest. That said, if you experience a certain level of financial success, you may never need the money in the account. Under these circumstances, your IRA would become part of your estate plan. Let’s look at the details, including some changes that have been recently implemented. Traditional vs. Roth Individual Retirement Accounts The two types of individual retirement accounts that are most commonly utilized are … [Read more...] about IRAs and Your Inheritance Plan
Leaving Assets Can Be Tricky – Part 2
Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. July 21, 2020 by Steve Hartnett Maybe you grew up without much. You worked hard. You earned a good education. You succeeded in life even though the streets weren’t paved with gold where you grew up. In fact, maybe you grew up in a very impoverished, oppressed community. Now you (and your spouse if you’re married) have accumulated enough so you’re … [Read more...] about Leaving Assets Can Be Tricky – Part 2
Leaving Assets Can Be Tricky
Leaving assets to your adult children or other beneficiaries may seem simple. But in many situations, it can be quite tricky. July 14, 2020 by Steve Hartnett Maybe you grew up without much. You worked hard. You earned a good education. You succeeded in life even though the streets weren’t paved with gold where you grew up. Maybe you even grew up in a very impoverished, oppressed community. Now you (and your spouse if you’re married) have accumulated enough so you’re comfortable. … [Read more...] about Leaving Assets Can Be Tricky
What is an Assignment and Nominee Agreement?
What’s an “Assignment and Nominee” agreement and what does it do? Some attorneys use such an agreement as a belt and suspenders approach to funding. by Steve Hartnett Funding a trust is critical when you have a trust-based estate plan. A trust is a receptacle, like a box. Before you fund the trust, it’s like the box is empty. You fund a trust by retitling assets into the name of the trust. Let’s say you have several items that you want in the trust. Let’s say you have items … [Read more...] about What is an Assignment and Nominee Agreement?
The Basics: “HIPAA” Powers
by Steve Hartnett This is the second in a three-part series of articles on Powers of Attorney. The first article examined the Financial Power of Attorney. This second article examines the Healthcare Power of Attorney and Advance Directive. This is the third in a three-part series of articles on Powers of Attorney. The first article examined the Financial Power of Attorney. The second article examined the Healthcare Power of Attorney and Advance Directive. This third article in … [Read more...] about The Basics: “HIPAA” Powers
The Basics: Powers of Attorney for Healthcare
Powers of Attorney are part of even the simplest estate plan. A Power of Attorney allows your Agent to act for you. There are Powers of Attorney for financial matters and also those for health care. This article concerns the Healthcare Powers of Attorney and Advance Directives. by Steve Hartnett This is the second in a three-part series of articles on Powers of Attorney. The first article examined the Financial Power of Attorney. This second article examines the Healthcare Power of … [Read more...] about The Basics: Powers of Attorney for Healthcare
