The components of Medicare are: 1) Part A, mainly hospital coverage; 2) Part B, outpatient coverage; and 3) Part D, drug coverage. Medigap coverage pays the uncovered portions of most Medicare bills. There is also Medicare Advantage coverage which provides most of the coverages in items 1), 2), 3) and…
Anne Kates Smith discusses in her article in Kiplinger’s magazine a law enacted at the end of last year which authorizes tax-advantaged savings accounts for individuals with disabilities knows as ABLE (Achieving Better Life Experience) accounts. Anyone can open an ABLE account for an eligible beneficiary. This is someone who…
In the November 2015 issue of Kipplinger’s magazine, an article points out that it is common for families to distribute assets through the use of trusts, which come in more flavors than Jelly Belly jelly beans. Trusts can minimize estate taxes, protect assets from mistakes of heirs or avoid probate…
A Home Equity Line of Credit allows you to get cash from the equity you have in your home. Most lenders look for a cushion of 30% equity already in the home before they will consider allowing the homeowner to borrow against the home’s equity. With house values only beginning…
Estate planning involving inherited Individual Retirement Accounts (IRAs) can be tricky. Inherited IRAs are different from other IRAs. Only an IRA inherited from a spouse can be rolled into your own IRA. Also, IRAs inherited from different people can not be consolidated into one account. If you take assets from…
Health Savings Accounts are available for individuals who have high-deductible health plans. In 2015, a plan for an unmarried person is considered high deductible if it has an annual deductible of at least $1,300 and the annual out-of-pocket expenses (deductibles, co-payments and other expenses) that the insured must pay for…
Roth IRAs (Individual Retirement Accounts) allow for tax free withdrawals of both contributions and earnings. The person who opens a Roth and makes periodic contributions can withdraw those original contributions at anytime without penalty and with no tax owed. The rules are spelled out in IRS Publication 590, “Individual Retirement…
In his recent article in the Wall Street Journal titled: Brokerage Accounts: What to Do When You Inherit One, Matthias Rieker outlines the best way for individuals who receive a brokerage account from a deceased relative or friend to access the account. Because brokerage firms must follow specific legal guidelines…
When children are young and parents have fewer assets, choosing a guardian for your children means finding a family where your values are shared and located where you want your children to live. With older children, consideration of their wishes comes into play when choosing a guardian. Choices about where…
The following are typical mistakes people make when planning their estates: • They have an outdated plan • They have no will or an outdated will • They rely on joint tenancy as a tool, especially children as joint tenants • They incorrectly title an asset so an unintended beneficiary…