Special needs families are accustomed to things being more complicated, and retirement planning is no exception. Parents must plan for their own retirement as well as ensure a plan is in place for the time when they are no longer able to care for their special needs child. That includes everything from making sure beneficiary designations are up-to-date, to ensuring a child’s inheritance does not make them ineligible for means-tested government benefits. [Read more…]
Special Needs Presumption Corrected at Federal Level
The U.S. House just last year passed the Special Needs Trust Fairness and Medicaid Improvement Act (H.R. 670). According to PR Web’s article “NAELA Praises House Passage of Special Needs Trust Fairness and Medicaid Improvement Act”, this “common sense fix” corrected the original law, which assumed disabled people would be incapable of handling their own affairs and need a guardian. The act passed in the House with an overwhelming 382 to 22 vote. [Read more…]
A Focus on Special Needs Planning
For the month of March and in honor of Special Needs Awareness Month, we’re focusing this month on estate planning when it comes to planning for special needs beneficiaries. In December 2016, President Obama signed into law the 21st Century Cures Act, which expanded protections for people with special needs. In addition, many states continue to enact laws allowing for ABLE accounts. [Read more…]
Planning for Massachusetts Estate Taxes, Too!
With the federal estate tax exemption up to $5.49 million for 2017, many need no longer worry about their estate incurring federal estate taxes. However, many states have a state estate tax and for Massachusetts residents, the state estate tax exemption is only $1 million. Any Massachusetts estate over that threshold will potentially have to pay state estate taxes and file an estate tax return. We’ll take a look at a Massachusetts Standby Gifting Trust and how you could potentially make gifts a day before death to avoid significant state estate taxes. [Read more…]
Looking at the Benefits of Charitable Lead Trusts
With a federal estate tax exemption at $5.49 million for 2017 and interest rates remaining near all-time lows, a charitable lead trust (or CLT) may be a particularly effective estate planning tool for some families. A helpful article from WealthManagement.com, “Planning for Qualified and Nonqualified Charitable Lead Trusts,”looks at some of the things that make planning with a CLT helpful. Especially given stock markets closing at or near record highs, there are some distinct benefits to using a charitable lead trust in your estate planning. [Read more…]
The Benefits of Intentionally Defective Grantor Trusts
It feels like the last few decades have been an investing roller coaster. However, with markets hitting all-time highs in recent weeks, some investors may be rethinking their trusts. Planning for income taxes in addition to estate taxes can add an extra layer of complexity to estate planning and a Wall Street Journal article, “Rethinking Some Grantor Trusts,” [no longer available from source] highlights some of the benefits of an Intentionally Defective Grantor Trust, or IDGT. [Read more…]
Some Ideas on Efficiently Passing IRA Accounts to Heirs
Most of us have qualified retirement accounts. Whether they’re an IRA, 401(k) or other qualified retirement account, we’re all generally familiar with their existence. However, did you know that you need to be careful when planning to give an IRA to an heir? An article from NerdWallet highlights some of the important planning aspects of these retirement assets. [Read more…]
The Benefits of ILIT Planning
Most of us understand the importance of providing for loved ones using life insurance. However, did you know that if you’re not careful, leaving life insurance money to heirs can result in a significant tax hit? A recent article from The Motley Fool, “What’s an Irrevocable Life Insurance Trust and Why Do I Need One?” looks at some of the benefits of using this more advanced estate planning technique. [Read more…]
Protecting the Value of Your Business
Many family business owners have a hard time imagining their businesses running without them at the helm, but others are look forward to transferring ownership when retirement or a new venture beckons. An aspect that must be addressed is safeguarding the value of the business.
One article, “How to Create a Transferable Family Business,” highlights seven concepts to position your business for sale or transfer by planning now. [Read more…]
What is a Grantor Retained Annuity Trust?
One advanced estate planning option, especially for those looking for a regular income, is a GRAT or “Grantor Retained Annuity Trust.” Depending on your goals, these trusts can be an excellent planning tool, even for those without a federally taxable estate. [Read more…]