There are two broad categories of assets which are includable in your gross estate which is subject to tax: property you own at the time of your death and certain property transfers you make during your life. See Internal Revenue Code Sections 2033-2044. The effect of these Sections is that…
Elder care managers evaluate the needs of an older individual. Often care issues have been over looked. For example, 12 million Americans live with chronic pulmonary disease, 1.5 million have Parkinson’s disease and researchers estimate that by 2050, 13.2 million Americans will have Alzheimer’s disease. Care managers meet with individuals…
In his article in the Wall Street Journal Online, Charles Passy points out that the current federal tax exemption on estates and gifts is set to change on January 1, 2013. The exemption is currently $5.12 million and will change to $1 million. Individuals should consider making large gifts under…
Avoiding probate is usually the most significant benefit of holding property in joint tenancy. Gift tax consequences are also important. When a parent adds a child to the title of property as a joint tenant, the parent has made a gift to the child of one-half of the value of…
Prices for long-term care insurance policies jumped between 6 and 17 percent in the past year. A 55-year-old couple purchasing long-term care insurance protection can expect to pay $2700 per year (combined) for about $340,000 of current benefits, according to the 2012 Long-Term Care Insurance Price Index, an annual report…
When a Seller assures a Buyer that he will stand behind the title to the property he is conveying, the Seller executes a Warranty Deed. With a Warranty Deed, the Seller discloses to the Buyer all of the encumbrances on the property and certifies to the Buyer that no other…
In a recent article, Laura Saunders points out the advantages to a Grantor Retained Annuity Trust (GRAT). GRATs transfer asset appreciation from one taxpayer to others, virtually tax free, and the benefit can be huge. A taxpayer can set up a GRAT with a set term of two years or…
As Kelly Greene points out in her recent article in the Wall Street Journal, families are looking to take advantage of the $5 million gift tax exemption which will expire at the end of the year, but at the same time they are worried that they will change their minds…
When an individual dies with a Will, once it is located, it should be given to the estate’s attorney. The attorney will send copies of the Will to anyone who may have an interest in it. The executor is entitled to a copy. He is in charge of opening probate,…
A federal appeals court has ruled that those over age 65 and eligible for Social Security cannot escape their automatic entitlement to Medicare Part A benefits unless they repay all the Social Security funds paid to them. Three retired federal workers who have reached age 65 and are receiving Social…