As you age, you invariably find you do not have the same physical capabilities you once had. If you are like most people, you can take care of your day-to-day needs without assistance, even if you are in your 50s or 60s. No one wants to rely on someone else, but things can be very different when you reach an advanced age. Living into your 80s may seem like an iffy prospect, but the statistics say you may likely experience life as an octogenarian. Longevity Statistics If you visit the Social … [Read more...] about Life As an Octogenarian Could Be Your Future
A lot of people do not understand why they should be concerned about Medicaid eligibility because they are not aware of the long-term care implications. This program will pay for a stay in a nursing home, and there is a Medicaid waiver that will cover in-home custodial care. Why should you care about any of this if you are going to qualify for Medicare? Though a lot of people question the fairness of this fact of life, Medicare does not cover long-term care for seniors that need help with … [Read more...] about Will Medicaid Count My Life Insurance?
Irrevocable Trusts have long been an effective, albeit static, estate planning tool. These trusts didn’t always change with circumstance, but now they can. Sometimes circumstances change in ways you never anticipated when signing your irrevocable trust. While you cannot reverse time, there are a few ways that you might be able to modify an irrevocable trust. This first part of a three-part series explores changes to irrevocable trusts using judicial and nonjudicial modification. The … [Read more...] about Changing “Irrevocable” Trusts Through Judicial and Nonjudicial Modification
A handful of classic rock artists have captured the public's imagination before they passed away at young ages. Jim Morrison is one of them. As the lead singer of The Doors, he was the voice of many memorable hits that people are still enjoying to this day. The 50th anniversary of his passing was recognized on July 3, 2021, with a great deal of attention. From an estate planning perspective, Morrison did one thing right, but he made some major mistakes. You can learn from them as we … [Read more...] about Anniversary of Jim Morrison’s Death Serves as an Estate Planning Reminder
This is the second in a two-part series on Roth IRAs. The first part reviewed the basics of Roth IRAs. (Click here for the first article in the series.) This second part looks at two advanced planning strategies. The first advanced planning strategy is to use a Roth IRA to maximize the deferral on an inherited IRA. Prior to the SECURE Act, beneficiaries could take distributions over their life expectancy. For those dying after 2019 with IRAs, the SECURE Act applies. Under the Act, most … [Read more...] about Roth IRAs Can Be a Great Planning Strategy: Advanced
Some people try to oversimplify the estate planning process. They are under the impression that you can simply draw up your own will, and you will be adequately prepared. A simple will is better than nothing, but in many cases, a will is not the right choice. In fairness, you can potentially create a legally binding will on your own, and even write it out by hand with no witnesses. This is called a holographic will, and they are legal in Oklahoma and about half of the other states in the … [Read more...] about Can I Write Out My Will By Hand?
If you use a will as the foundation of your estate plan, you name an executor to administer the estate. After your death, the executor admits the will to probate, which is a court-supervised legal process. Oklahoma Probate Shortcuts There are a couple of available shortcuts for the administration of small estates. An affidavit is a statement that is signed under oath. If you are the rightful inheritor of property valued at $50,000 or less, you may present an affidavit along with the death … [Read more...] about Is a Small Estate Subject to Probate in Oklahoma?
Roth IRAs can be a great planning strategy. They can save taxes and help in many ways. This is the first in a two-part series on Roth IRAs. This first part will look at the basics of Roth IRAs. The second part will look at more advanced planning strategies. An Individual Retirement Account (IRA) is a savings vehicle in which a deduction may be taken upon contribution (with limitations). The maximum contribution in 2021 is $6,000, and those age 50 and over may contribute an additional … [Read more...] about Roth IRAs Can Be a Great Planning Strategy: Basics
Financial success carries great benefits, but it can present a challenge as well. The federal estate tax looms large for high net worth individuals because it carries a 40 percent top rate. A certain amount may be transferred tax-free upon your death through a credit or exclusion. Currently, the exclusion is $11.7 million, so it does not impact most Americans today. However, by law, the exclusion will drop to $5 million in 2026, and Congress could make additional changes at any … [Read more...] about How Do You Gain Estate Tax Efficiency?
When you are planning your estate, you should carefully consider the life situation of each of your beneficiaries. The method of transfer to one beneficiary may not be appropriate for another. When it comes to providing for a person with special needs, you must take benefit eligibility into consideration. A significant percentage of people with disabilities rely on Medicaid as a source of health insurance. This is a need-based benefit that is only available to individuals with very limited … [Read more...] about Special Needs Planning and Medicaid Estate Recovery