by Steve Hartnett Sometimes people use Joint Tenancy as a simple way to do Estate Planning. This can have drawbacks, sometimes serious and unexpected. First, why is Joint Tenancy a simple way to do Estate Planning? At the death of a joint tenant, the property automatically transfers by operation of law to the remaining joint tenant(s). This can be attractive because it bypasses the probate process and all it entails. Probate is the process that moves property titled in the name of … [Read more...] about Joint Tenancy Problems in Estate Planning
BLOG
Biden Administration Could Reduce Estate Tax Exclusion
Runoff Elections in Georgia resulted in a Senate controlled by Democrats. Could this impact your Estate Planning? It’s possible. by Steve Hartnett The estate tax exclusion is the amount you can give without facing an estate tax. Under current law, you may give this amount during life or at your death and after that amount is used, you face a federal tax of 40% on assets beyond that amount. The amount has fluctuated a great deal over the years. It was $675,000 as recently as 2001. … [Read more...] about Biden Administration Could Reduce Estate Tax Exclusion
Don’t Overlook These Inheritance Planning Details
There is more to estate planning than the creation of a simple will. In fact, a trust may be a better choice in most cases. We will examine the benefits of a trust versus a will in a different post. In this post, we will look at some of the finer planning details that people often overlook. Letter of Final Instructions If you have a will, the executor is the estate administrator. If you have a trust, the trustee is the administrator. For purposes of this discussion, we will focus on the … [Read more...] about Don’t Overlook These Inheritance Planning Details
It’s Better to Give, Especially This Year
Normally, you must itemize your deductions in order to benefit from them. In 2020, the standard deduction amount is $12,400 for individuals and $24,800 for married couples filing jointly. But this year, you can get a charitable deduction even if you don’t itemize. by Steve Hartnett Ordinarily, charitable deductions are only available as an itemized deduction. When you file your federal taxes, you have an option to take itemized deductions or the standard deduction. The standard … [Read more...] about It’s Better to Give, Especially This Year
New Year’s Resolution: Schedule an Estate Plan Review
When a new year rolls around, people often resolve to take care of certain responsibilities that they have been putting on the back burner. With this in mind, we urge you to schedule an estate plan review in 2021 if you have not looked at your plan in years. There are a number of different reasons why revisions can be necessary, and we will look at some of them in this post. Changes to Relevant Laws Your original estate plan is based on a snapshot of the circumstances that existed at the … [Read more...] about New Year’s Resolution: Schedule an Estate Plan Review
2021 Estate Tax Exclusion Update
The federal estate tax applies to asset transfers when someone passes away and leaves assets to beneficiaries. The tax rate starts at an attention-getting 40 percent. That’s the bad news. The good news is that an exclusion allows you to transfer an amount tax-free. The portion of an estate that exceeds the exclusion is what would be subject to taxation. There are annual estate tax adjustments to account for inflation, and we are going to share the 2021 number in this post. But before we … [Read more...] about 2021 Estate Tax Exclusion Update
Preparing for the Unexpected…and the Eventual
The world is an unusual place. Things you’d never expect to happen sometimes actually do happen. There are natural disasters and unusual phenomenon. It’s important to prepare, not just for the unexpected but the eventual. by Steve Hartnett All of us face difficulties and tragedies in our lives. Some of these difficulties are expected and some are unexpected. 2020 has been a year of many unexpected difficulties. While all of us get sick from time to time, nobody anticipated the … [Read more...] about Preparing for the Unexpected…and the Eventual
Medicaid Healthy Spouse Allowances Updated for 2021
Before we focus on the subject that serves as the title of this post, we will share some background information to provide context. Most senior citizens will require living assistance eventually, and the United States Department of Health and Human Services tells us that 35 percent of elders will live in nursing homes. The state of Oklahoma has determined that the average cost for a year in a nursing home statewide is about $65,000-$80,000. Here in Oklahoma City, the median charge for a … [Read more...] about Medicaid Healthy Spouse Allowances Updated for 2021
Wartime Veterans Pension Will Rise in 2021
People who have served in the military can take advantage of a retirement pension earned after 20 years of service. This benefit can provide a comfortable retirement, and there are two different approaches that can be taken. Since most people join the military when quite young, a service member could retire after 20 years of service and embark on a second career in the private sector, receiving his or her military pension during that time. A retired veteran could save the pension for the … [Read more...] about Wartime Veterans Pension Will Rise in 2021
Tax Planning for 2021
Planning is important for your income taxation during life as well as for any estate tax at death. Even though 2021 is just starting, it’s not too early to think about planning for whatever it may bring your way. by Steve Hartnett As 2020 draws to a close and a new year dawns, we need to think of…tax planning! Some years Congress tweaks the laws more than other years. While 2020 held plenty of surprises with coronavirus and an election, it was a relatively quiet year for legislative … [Read more...] about Tax Planning for 2021
