When we plan our lives and our estates, it’s not all about the estate taxes. Of course, estate taxes should be taken into consideration, but there are many more important factors. That’s why the temporary doubling (until the end of 2025) of the amount which can be passed free of estate tax (to $11.18 million in 2018) does not remove the need for estate planning. Whether the exclusion amount is $5.59 million or $11.18 million is irrelevant to the vast majority of people.Here are some … [Read more...]

Charlotte Fox was an adventurous woman. She was a serious mountain climber and reached the summit of some of the world’s tallest mountains. She became the first American woman to climb three peaks above 8,000 meters, including the world’s tallest peak. She was a member of a climbing party on Mount Everest in 1996 which encountered disaster on their descent. Several members of the party died. It’s the basis of Jon Krakauer’s “Into Thin Air.”Everyone understands there are risks climbing the … [Read more...]

Most of us recognize that estate planning is the loving and responsible thing to do. Yet, only 44% of adult Americans even have so much as a simple Will, according to a Gallup poll.Our world is increasingly complex. It seems our lives are busier than ever. Interestingly, this may not be what leads us to procrastinate. According to Psychology Today, there are three reasons we might procrastinate:Things Get Done. We procrastinate until we are faced with a deadline and the deadline … [Read more...]

People work much of their lives to accumulate assets, often in tax-favored vehicles such as IRAs, Roth IRAs, 401(k)s, and other retirement plans. It’s often desirable to stretch-out withdrawals from these assets, not just during the “Participant’s” life, but long after their death. (The Participant is the person who contributed to it during their lifetime.) These types of assets may be the bulk of the assets in the estate, other than the home. So, handling these assets properly is … [Read more...]

Beneficiary designations are a powerful tool in estate planning. They are a simple way to direct that specific assets go where desired. However, they must be used with care and coordinated with the overall estate plan to meet the client’s objectives.Life insurance and retirement accounts, such as IRAs, have beneficiary designations which determine to whom the assets go at death. Bank, brokerage, and other financial accounts may also have such beneficiary designations. Additionally, in many … [Read more...]

Often, when people think of “estate planning” they think it’s only about deciding who gets the assets. However, how they get the assets may be even more important.The default under state law, in other words the cookie-cutter estate plan you didn’t know you already had, is to give assets outright to the children (and maybe other blood relatives, depending upon the state) upon the death of the surviving spouse. There are many reasons this one-size-fits-all plan isn’t ideal in the vast majority … [Read more...]