November is National Alzheimer’s Awareness Month. This was established by Ronald Reagan in 1983. Currently, more than 6 million Americans of all ages have Alzheimer’s. With numbers continuously on the rise, it is important to discuss the steps you can take if a loved one is showing signs of early-onset Alzheimer’s.
Military Family Estate Planning
Thank you to our Veterans for your bravery and sacrifice for this country. We appreciate your efforts to maintain America’s freedom. Happy Veteran’s Day!
In honor of Veterans Day, we would like to dedicate this post to spreading awareness about the resources and special circumstances that go with Estate Planning for military members.
Why Have a Family Care Meeting™?
by Kristin Carroll
Communication is key, and this is your chance!
We get asked about our Family Care MeetingTM a lot these days. Everything from when can I schedule mine to what’s the point? The first question is easy, if you’re a client and you’ve signed your estate plan, give us a call, we’d love to schedule a Family Care MeetingTM for you and your trusted advisors or loved ones! The second question might take a little more explaining.
We often ask our clients, when do you need an estate plan to help care for your family? The somewhat morbid answer is, of course, when you’re no longer around to care for them yourself. Someone else is going to have to administer the plan you created; you won’t be able to do that. Doesn’t it make sense that they have some idea what it’s going to look like before they need to be involved?
Potential Tax Law Changes – Imminent
Throughout the year we have been monitoring and communicating about the various discussions regarding potential tax law changes. Although there have been a lot of proposals put forth, we have a little more clarity as the House Ways and Means Committee has forwarded a “bill” (not law) to be considered by the full house that gives us some indication as to what the final law may be. It is important to understand that this is not the law and is subject to change.
New Proposed Tax Law May Dramatically Affect Massachusetts Estate Tax Planning – Part 2: Eliminating the Step-Up in Basis at Time of Death
Last week we addressed how new proposed tax law may lower the federal gift and estate tax threshold and prohibit current gifting strategies to lower Massachusetts estate taxes, as well as the window right now to take advantage of those current strategies. If you did not get a chance to read that blog, go check it out here.
In Case You Ever Wondered When You Should Call Us
For years we have been telling our clients, if you have questions or anything changes, call us; however, we are finding we get the question somewhat frequently, “but specifically when should I call you?” Or we find out about a major life change several months or a year after the fact because clients or their family members did not realize that they could or should call us. We thought we would try to clear some of that up and give you some guidelines on when you might want to think about picking up the phone or shooting us an email. We’re here to be a resource for our clients, and we never want you to feel like you just have to figure it out on your own. Here are some reasons you might want to reach out:
After the Holidays
Families tend to be at the center of holidays.
The holiday season is a great time to gather to celebrate and carry on our family traditions. This year, some of our traditions needed to be modified or changed, but I find that most families have adapted and found ways to stay connected. In estate planning, we’ve found that communicating with our families about their estate plan is necessary to ensure their estate plans will actually work, and that their family is taken care of. That’s why we’ve included a family care meeting in our estate planning process, whereby you, your trusted advisers, and your family members meet to discuss your estate plan and how best to take care of you and your family in the event of incapacity and death. Remember, we do not have to disclose the value of assets in these meetings (because we don’t know the value of the assets when you die), but it is important that your family meets your trusted advisors, understands what your intent is regarding your estate plan, and knows that you’ve taken the steps necessary to make things easier for them when you die.
New Administration, New Congress, and Potential New Laws
Every 4 years, a change in our Presidential elections results in a flurry of literature, workshops, and newsletters regarding potential changes in income and estate tax laws. This year was no exception, as the significant increase in the federal deficit resulting from costs associated with COVID-19 has placed more pressure on tax increases, including potential tax increases in the estate planning realm. The federal exemption amount, which is $11.7 million as of January 1, 2021, will, under the current law, decrease to about $6.7 million in 2026. Many believe that this decrease in the coupon will occur earlier or may even go down below the $6.7M returning to the former $3.5M. All of this is speculation at this point, but we must be prepared to act quickly, as some of these tax law changes may act retroactively.
New Year’s Resolutions
Every year, at the start of the year, many of us make New Year’s resolutions. We think about the things we want to be different in our lives, and we resolve that we’re going to change them. For some of us, this actually results in life changes every year. For most of us, we have the best of intentions, but life gets busy, or challenges come up, and by February our resolutions are a thing of the past. Personally, I’m resolving to make more time for creativity in 2021—dust off my keyboard, do some more crafts and artwork with my kids. You can ask me in a few weeks what we’ve created, and we’ll see how it goes. I’m pretty sure my 1st grader and preschooler are resolving to find a way to get me to bake more cookies in 2021.
Keeping Up with the Changes in 2020
What a year it has been!
We all know that it’s been a crazy year navigating a global pandemic and keeping our family safe, but it’s also been an extraordinary year when it comes to estate tax, estate planning and changes in the law.