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Recent Blog Posts
Gender and Estate Planning: Are You Really Prepared?
For many, the idea of estate planning is difficult to even conceive. This is understandable, as the subject of death, in general, makes many uncomfortable. However, it is essential to consult an attorney to have a plan in place should the worst happen - especially if you are a woman in Illinois.
The World Health Organization's latest statistics show that even on a global level women generally outlive men by four years. In the state of Illinois, this figure is amplified to a higher degree - with women living six years longer than men. This makes having a cohesive plan in place for your estate all the more important.
Seniors Consider Medicaid Trust for Future
Senior citizens who own property and assets often have difficulties qualifying for certain government programs. Healthcare, especially long-term healthcare, for seniors is critical. However, many private insurance companies are too expensive.
In order for a person to be eligible for Medicaid nursing home benefits, he or she cannot have more than $14,400 in countable resources. There are some resources a senior may own that are exempt under certain circumstances, including retirement funds and his or her home.
Is a Revocable Living Trust Right for You?
When it comes to estate planning, an increasing number of people are having revocable living trusts prepared by their attorneys.
A revocable living trust goes into effect while the person is still alive, as opposed to a will, which does not go into effect until the person dies. It is referred to as revocable because a person can change or cancel the trust any time they want and for any reason they want, as long as they are mentally competent. The trust only becomes irrevocable when the person dies.
The individuals who are involved in a living trust include the person who created it, the person or people who the creator appointed as trustees, and the beneficiaries of the trust.
Public Policy Changes May Have Negative Impact on Retirement Plans
If you are approaching the age of retirement, or are currently planning your finances for your golden years, you probably have been following a set plan. However, a recent article indicates a few proposed changes in the current public policy that are on the table for the 2015 fiscal year budget. And these changes could have a serious impact on retirement plans.
IRA Distributions
Currently, there are no required minimum distributions rules for ROTH IRAs. The pending change would reverse that by implementing required distributions after the owner is 70 ½ years of age. This can cause people to take out more money than they actually need instead of investing it. This has a trickle-down effect that includes higher taxation as well as a higher amount of Social Security being taxed.
Estate Planning: Is it Different for Women?
Estate planning is important for both men and women. However, there may be different issues that women, specifically, need to address. Statistically, women have a longer life expectancy. And according to the U.S. Census Bureau, 36 percent of women 65 and older are widowed, while only 12 percent of men 65 and older have lost their spouse.
Data also shows that women are more often the custodial parent of children and are often the caretaker for elderly parents or relatives, more so than men. Due to these differences, women have a different psychological approach to estate planning. They are so busy taking care of everyone else they "forget" to take care of themselves.
Does Everyone Need Estate Planning?
Whether or not you choose to believe it, estate planning is not only for the incredibly wealthy in the world. This is a very important aspect of life for people of all income levels. And with that said, you will want to know what will happen to your money and property once you are gone. You will want to make sure that your family is taken care of and that they know exactly what to do with your estate. This is where estate planning comes into play.
Durable Power of Attorney
A durable power of attorney is something every person should have when putting together an estate plan. A durable power of attorney will protect your property and money when you are mentally or physically unable to do so on your own. This permits another person to act on your behalf when it comes to paying bills, filing taxes, and managing property.
It's Never too Early to Start Retirement Planning
Estate planning covers several other aspects besides deciding what will happen to your assets once you are gone. Planning correctly can help to build and maintain those assets for the future, such as retirement. And, it is never too early to start estate planning.
One of the aspects in which many people fail to plan for is exactly how much will they need to have saved in order to enjoy retirement. However, determining the age in which you want to retire is the first step. To begin, make an estimate calculation regarding how much you think you will need to live on and then factor in what your approximate Social Security benefit will be.
The Most Common Estate Planning Needs for Couples
The practice of estate planning is a prudent decision at any age or stage of life, but many people consider beginning that process when they start a family. There are several common goals that couples tend to have with regard to the estate planning process.
The first goal is to provide for their loved ones and family members. If both spouses pass away or become otherwise incapacitated, an estate plan can outline the plans for how loved ones are protected. Whether it is minor children, other relatives, or even pets, all of these individuals can be protected with the proper estate planning tools.
Options for Inherited IRAs
Individual Retirement Accounts (IRA) are savings accounts that allow people to save up for their retirement, either tax-free or tax-deferred. Even though funds are accessible at any time, early withdrawal results in penalties. However, there are some exceptions.
Spouses who inherit an IRA have choices to make regarding what to do with those funds. A spouse can either combine it with their own IRA or can move it into an inherited IRA. Financial planners advise the spouse to make that decision based on their age and the deceased spouse's age.
Back to Basics: Crucial Estate Plan Components
Most people recognize that a will is a cornerstone of estate planning, but they might fail to include three other important documents: a durable power of attorney for financial needs, a living will, and a durable power of attorney for healthcare.
The best way to ensure your plans for the future are aligned properly is to have all four of these documents drafted by an estate planning attorney. Individuals who attempt to cut corners by putting these documents together themselves might not realize the mistakes they are making which expose them and their heirs to risk or extended probate.
