When you prepare your estate plan, typically there are formalities required. In most states, a Will must be signed by the testator (the person whose property is governed by the Will) and that signature must be witnessed by two people. The rules vary a little from state to state. For example, in some states, three witnesses are required. In other states, a Will need not be witnessed by others, as long as it is entirely in the handwriting of the testator and signed by the testator at the end of … [Read more...] about Building Flexibility into Your Plan
Leaving Assets Can Be Tricky
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. Maybe you’re not a billionaire, but you feel like you’ve achieved a reasonable level of material success. After your death, you’d like to provide for your loved ones so they … [Read more...] about Leaving Assets Can Be Tricky
Leaving Assets Can Be Tricky – Part 3
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 comfortable. Maybe you’re not a billionaire, but you feel like you’ve achieved a reasonable level of material success. After your death, you’d like to provide for your loved ones so … [Read more...] about Leaving Assets Can Be Tricky – Part 3
The Basics: “HIPAA” Powers
A Power of Attorney is a document by which you appoint someone as your “Agent” to act on your behalf. If that Agent is unwilling or unable to act, the document can appoint one or more successor Agents. But what is a “HIPAA” Power? First, “HIPAA” is the Health Insurance Portability and Authorization Act of 1996. That Act brought about many things, including enhanced privacy in your health records. While HIPAA protections are a great addition to the law, they can thwart people who have a … [Read more...] about The Basics: “HIPAA” Powers
Leaving Assets Can Be Tricky – Part 2
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 comfortable. Maybe you’re not a billionaire, but you feel like you’ve achieved a reasonable level of material success. After your death, you’d like to provide for your loved ones so … [Read more...] about Leaving Assets Can Be Tricky – Part 2
The Basics: Financial Power of Attorney
First, what’s a Power of Attorney? It’s a document by which you appoint someone as your “Agent” to act on your behalf. If that Agent is unwilling or unable to act, the document can appoint one or more successor Agents. In other words, you give someone else (the Agent) powers you inherently already have yourself. With a Financial Power of Attorney, otherwise known as a General Durable Power of Attorney, you appoint your Agent to make financial decisions for you. The Power could be drafted to be … [Read more...] about The Basics: Financial Power of Attorney
The Basics: Powers of Attorney for Healthcare
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. The third article in the series will focus on a “HIPAA” Power of Attorney. These three documents are the keystone in even the most basic estate plan. As outlined in the first article in the series, a Power of Attorney is a document by which you appoint someone as your … [Read more...] about The Basics: Powers of Attorney for Healthcare
Shrunken Asset Values Open Estate Planning Opportunities
The spread of the coronavirus has wreaked havoc on financial markets around the world. While nobody would seek out such a decline, it could provide opportunities for some people. This is the second of a two-part series on strategies to consider under these circumstances. This first article looked at gifting and electing alternate valuation. This second article looks at the Grantor Retained Annuity Trust, or “GRAT,” and how that strategy might be used in these troubling times. Let’s look at a … [Read more...] about Shrunken Asset Values Open Estate Planning Opportunities
Removing Life Insurance Without Triggering the Transfer for Value Rule
This is the second in a two-part series of articles regarding life insurance and removing it from the taxable estate. The first article examined why life insurance is in the taxable estate and how to remove it, including the trap of the three-year lookback. This second article examines the application of the “Transfer for Value” rule and how to navigate around that rule while keeping the life insurance out of the taxable estate. In the first article in the series, we saw that life insurance is … [Read more...] about Removing Life Insurance Without Triggering the Transfer for Value Rule
Removing Life Insurance from the Taxable Estate
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” rule and how to navigate around that rule while keeping the life insurance out of the taxable estate. First, why is life insurance in the taxable estate? Section 2042 causes inclusion in your estate if the life … [Read more...] about Removing Life Insurance from the Taxable Estate
