Entrepreneurs often want to know what type of business entity they should set up for their companies. Limited liability companies (LLC) offer several surprising advantages, whether you’re expanding a brick and mortar retail operation or scaling an online business. Traditional corporations, also called C corporations, pay taxes on profits, while shareholders pay taxes on dividends,…
The latest news released by the Social Security Administration has not been well-received by the 65 million retirees, disabled workers and their families who rely on Social Security benefits for their day-to-day living expenses: For the third time in seven years, Social Security recipients will not see a cost of living increase to their…
When you hear the term “estate planning,” you might envision an older couple arguing over how to divide their copious assets, properties and business holdings among numerous relatives – not someone closer to your age waylaid by student debt and uncertain job prospects. All that said, now is the time to start thinking about the…
Now is the ideal time to start year-end tax planning. Below you will find a variety of tax-saving strategies you should consider using immediately so that you can get your 2015 tax house in order well in advance of the fast-approaching holiday season. Plan Now for a Bountiful Fall Harvest The last thing…
More than 10,000 people turn 65 in the U.S. every day according to Aging.gov (http://www.hhs.gov/aging/), a new website recently launched by the Obama administration. The goal of this website is to act as gateway for older Americans and their families, friends and caregivers to locate information about leading a healthy lifestyle, options for health care,…
In a previous post, we explored three key ideas about living trusts. Here are four more fascinating insights into how to make the most of these instruments to plan for your future. What a Living Trust Can and Can’t Do for You A living trust can prevent your estate from going through probate court, delaying…
The Veteran’s Administration (VA) offers a pension benefit to low-income veterans (or their spouses) who are in nursing homes or who need help at home with everyday tasks like dressing or bathing. The pension, called Aid and Attendance, is currently underused, but impending regulations will soon make it available to even fewer veterans. The new regulations will for the first time specify asset limits for qualification and impose a look-back period and transfer penalties similar to Medicaid’s. The looming changes mean that those considering applying for Aid and Attendance should act quickly.
To celebrate my birthday each year, I’ve started going to Key West, FL, on Columbus Day weekend to run(and by run, I mean jog-walk-shuffle-cry-hobble) in the Southernmost Marathon*. Now, most people think I’m crazy-bananas for wanting to spend my vacation pounding the pavement in the sweltering humidity of the Keys…and to those people, I say “You…
As of July 1, 2015, Connecticut probate courts earned the dubious distinction of charging the highest probate fees in the U.S. Amazingly, the Connecticut legislature voted to completely cut general fund support for the state’s probate courts for the next two fiscal years, thereby creating a $32 million deficit. In order to cover the shortfall,…
Perhaps you first obtained life insurance 10 or more years ago, but you haven’t updated your insurance plan (or thought about it much) since. You should consider reviewing your policies. A re-assessment has the potential to pay off significantly. The insurance industry has come to understand that we are all living longer than they originally…
One common way to avoid probate of real estate after the owner dies is to hold the title to the property in joint names with rights of survivorship with children or other beneficiaries. This is accomplished by adding the names of the children and certain legal terms to a new deed for the property and…
What is a Lifetime QTIP Trust? One traditional estate planning model for married couples makes use of the “AB Trust” strategy. After the first spouse dies, the “B Trust” holds an amount equal to the federal estate tax exemption (currently $5.34 million in 2014), and the “A Trust” holds the excess. The “A Trust” is…
How to Minimize Legal Fees After Death Death is a costly business. Aside from funeral expenses, legal fees can take a big chunk out of how much is left for your loved ones after you’re gone. But it doesn’t have to be this way. Careful planning can minimize the legal fees your loved ones will…
If You Die Without a Will, Does Your Spouse Inherit Your Entire Estate? If you are married and you die without a Last Will and Testament, you may mistakenly believe that your spouse will still inherit your entire estate. Not so fast. Who will inherit your estate depends on several different factors: 1. How is…
(Note: Originally published on October 7, 2014) Does Your Revocable Living Trust Reduce Your Estate Tax Bill? Many people believe that once they set up and fund a revocable living trust, property held in the trust will avoid estate taxes after they die. In reality, this may or may not be true depending on your…
(Note: Originally published on October 6, 2014) The Trust Protection Myth: Your Revocable Trust Protects Against Lawsuits WARNING: Many people believe once they set up a Revocable Living Trust and transfer assets into the Trust, those assets are protected from lawsuits. This is absolutely nottrue. While Trusts commonly provide asset protection for beneficiaries, few Trusts…
The Wealth Counselor Protecting assets against loss has become a common goal of estate planning. Asset protection trusts come in many different forms and can be used to protect property for the use and benefit of clients as well as their families and other beneficiaries. In this issue you will learn how clients can easily…
The Wealth Counselor Estate planning is not only about having a plan in place to deal with what happens after a client’s death, it is also about having a plan in place to deal with what happens if a client becomes mentally incapacitated. In this issue you will learn: What happens without an incapacity plan.…
The Wealth Counselor Trusts that continue for the benefit of a surviving spouse’s lifetime and then for the benefit of several generations have become the norm. Drafting trust agreements that will cover the administration, investment, and distribution of trust property over the span of multiple decades is challenging. In this issue you will learn how…
The Wealth Counselor A will or trust contest can derail a client’s final wishes, rapidly deplete their estate, and tear their loved ones apart. But it doesn’t have to end like this. In this issue you will learn: What a will or trust contest is Who can contest a will or trust When a will…
The Wealth Counselor Studies have shown that more than 90% of family wealth is lost by the end of the third generation. To help clients avoid this, advisors must become adept at bridging the disconnect among generations when it comes to the transfer of family wealth. In this issue you will learn: The main factors…
The Wealth Counselor Knowing the ins and outs of reducing income in view of the new tax laws will add value to your client relationships. In this issue you will learn how: Charitable trust-based planning can be used by individual clients to reduce their taxable income. Distributions, trust reformation or decanting, and investment shifting can…
The Wealth Counselor Asset protection planning is a powerful way to provide additional value to your clients. In this newsletter you will learn about seven trust-based asset protection strategies and how they can:- Protect your client’s assets from creditors, lawsuits, and divorcing spouses. – Protect client’s assets gifted to, or inherited by,…
The Wealth Counselor Only the very wealthy and those in high-risk professions need asset protection planning, right? That’s a myth. In reality, we all need asset protection. Why? Because we all can be sued and lose everything we have. A car accident, business failure, foreclosure, medical crisis, or injured tenant can result in a monetary…
The Wealth Counselor In a landmark, unanimous 9-0 decision handed down on June 12, 2014, the United States Supreme Court held that inherited IRAs are not “retirement funds” within the meaning of federal bankruptcy law. This means they are therefore available to satisfy creditors’ claims. (See Clark, et ux v. Rameker, 573 U.S. ______ (2014))…
