Author Archives: Site Administrator
What Do I Do With an Inherited IRA?
When a family member dies and you discover you’re the beneficiary of a retirement account, you’ll need to eventually make decisions about how to handle the money in the IRA that you will be inheriting. Forbes’ recent article, “What You Need To Know About Inheriting An IRA, ” says that being proactive and making… Read More »
If My Mom Wants to Give Me Her House, Is It Better to Inherit or Buy It?
Say that your mom owns a house without a mortgage, and she’d like to transfer the house to her adult son and daughter. The issue is whether it’s a better strategy to make the transfer via gift or a sale. Let’s throw in the fact that the son is a U.S. citizen, but the… Read More »
Do I Have to Pay Taxes on My Inheritance?
For all practical purposes, the U.S. government doesn’t have an inheritance tax. The inheritances of cash or property aren’t taxed as income. As of 2019, the estate tax is only imposed on estates above $11.4 million for singles, or twice that for couples. Investopedia’s recent article asks “Are Estate Distributions Taxable?” The article explains… Read More »
How to Manage the Cost of Long Term Care
A single woman has seen her annual premiums for long-term care rise by more than 60% over the last six years. Her cost in 2018 was $2, 721, up from $1, 626 in 2013. She’s keeping her policy, reports CNBC in the article “Long-term care insurance costs are way up. How advisors can help… Read More »
Have Your Will Done? That’s Not An Estate Plan
A last will and testament is an important part of an estate plan, and every adult should have one. However, there is only so much that a will can do, according to the article “Estate planning involves more than a will” from The News-Enterprise. First, let’s look at what a will does. During your… Read More »
How Joint Tenancy Creates Problem for Seniors
Parents putting children or other family members as joint owners of their assets. is another example of a simple solution for a complex problem. It doesn’t work, even though it seems as if it should. As explained in the article “Beware the joint tenancy trap” from Monterey Herald, putting another person on an account,… Read More »
Dark Side of Medicaid Means You Need Estate Planning
A woman in Massachusetts, age 62, is living in her family’s home on borrowed time. Her late father did all the right things: saving to buy a home and then buying a life-insurance policy to satisfy the mortgage on his passing, with the expectation that he had secured the family’s future. However, as reported… Read More »
What Happens When There’s No Will or the Will Is Invalid?
The Queen of Soul’s lack of a properly executed estate plan, isn’t the first time a celebrity died without a will, and it surely will not be the last says The Bulletin in the article “Aretha Franklin and other celebrities died without an estate plan. Will you?” The Rev. Dr. Martin Luther King Jr.,… Read More »
What are Some Estate Planning Tips for People Without Kids?
If you and your spouse don’t have children, the focus of your financial legacy may be quite different from what it would be if you were parents. Motley Fool’s article, “5 Estate-Planning Tips for Child-Free Couples, ” suggests that you may want to leave some of your money to friends, family members, charitable organizations,… Read More »
Your Spouse Just Died … Now What?
There are several steps to take while both spouses are alive and well, to help reduce the chance of the surviving spouse finding themselves in a “financial deadlock” situation, or worse. The preparations require the non-financially dominant partner to be involved as much as possible, says Barron’s in the article “How to Avoid Financial… Read More »