Search Results

Bloomberg BNA’s recent article, “Future of Popular Estate-Planning Tool May Hinge on Election,” discusses GRATs are sophisticated estate planning tools. Be sure to secure the help of an experienced estate planning attorney to determine if this is right for Reference: Bloomberg BNA (May 31, 2016) “Future of Popular Estate-Planning Tool May Hinge on Election ” #AssetProtection #EstateTax #GRAT #TaxPlanning #estateplanning

While an inheritance is a natural part of estate planning, there are a few different reasons that some This special type of Trust is created as part of your estate plan and can actually dictate that the money they need to survive without them, it is important to plan ahead for these types of issues with proper estate

protecting your assets and passing them on to the next generation, it is time to talk to an experienced estate

Talk with your estate planning attorney. How to assist your aging parents with their finances” #HealthCareDirective #HoustonAssetProtection #EstatePlanningLawyer

A properly drafted will can play a crucial part in minimizing your estate’s exposure to taxes. should die without a legally proper will, the probate court may wind up making decisions about your estate If you are married and own property you intend to gift, ask your estate planning attorney to check state laws to see how they may impact your estate. of your estate plan.

Print this and post it in a good spot, or add these dates to your online calendar with reminders. January 1 (or thereabouts): This is a great time to get your financial house in order. Review your assets and financial plan. Those who are nearly retired should examine their financial plan at least annually, and retirees should conduct quarterly reviews. For Social Security beneficiaries, a new budget law eliminated the “restricted application” strategy for those who are age 61 and younger after January 1. But many baby boomers got an exception, so if you are 62 or older on January 1, 2016, you can still use this, which lets you apply just for spousal benefits at full retirement age while letting your own benefit grow 8% a year until age 70. January 15: If you file estimated taxes, you must file the final payment for the 2015 tax year. However, the IRS gives you a grace period if you file your tax return by February 1. Pay the balance when you file by that date. If you want to purchase individual health insurance on the federal and state health exchanges, January 15 is the deadline to enroll in or change health plans for new coverage to start in February. January 31: This is the deadline to enroll in individual health insurance or change plans on the exchanges and have coverage start in March 2016. Remember, if you don’t have health insurance for 2016, you are subject to a penalty. March 15: If your company offered a grace period for your flexible spending account, spend your remaining FSA money by March 15 on eligible expenses. If you miss this deadline, the cash balance in your account goes to your employer. April 1: If you turned 70½ in 2015, April 1 is your deadline for taking your first required minimum distributions (RMD) from your retirement accounts, such as your 401(k) and your IRA. The penalty for missing an RMD is 50% (yes half!) of the amount that wasn’t withdrawn. If you miss a required distribution, take the money out as soon as you realize your error and ask the IRS to waive the penalty with Form 5329 and a letter of explanation. April 18: The federal tax filing deadline in 2016 is delayed to April 18 because of the celebration of Emancipation Day on the 15th in DC. April 18 is also the last day to make 2015 contributions to an IRA. You can file for a six-month extension on your 2015 return, but you need to pay your expected tax bill by April 18. And don’t forget about state taxes! April 18 is also the due date for the first federal estimated tax payment for the 2016 tax year. April 30: A new law ends the “file and suspend” Social Security strategy. If you want to use this and are at full retirement age of 66 or older as of May 1, you must file for your benefit and suspend it by April 30, 2016. Then your spouse can collect spousal benefits based on your earnings record while you postpone your benefit to earn 8% a year in delayed retirement credits. June 15: Your second estimated tax payment is due (if applicable). June 30: Retirees abroad who had more than $10,000 in foreign bank accounts in 2015 must file FinCEN Form 114 with the Treasury Department. The government imposes huge penalties for failing to file. September 15: If you’re paying estimated tax, you must send in 2016’s third payment. The final estimated tax payment is due in January 2017. September 30: Some beneficiaries who inherited individual and Roth IRAs in 2015 take note—if a non-individual (like a charity) has also been named as a beneficiary, cash out the non-individual’s portion by this date. Otherwise, the IRA may have to be totally withdrawn within five years after the original owner’s death. October 15: Open enrollment begins for private Medicare Part D prescription drug plans and Advantage plans. This ends on December 7. Take some time to study this, as plans can change their benefits and drug formularies from year to year. October 17: Your 2015 tax return is due today if you filed for a six-month extension. But breathe easy: because the usual deadline of October 15 falls on a Saturday, you get a few extra days to finish up your return. November 1: Watch for federal and state health care exchanges to open for enrollment for 2017 health coverage. December 31: Of course, end of the year means the deadline for several tax moves, such as the second required minimum distribution. Non-spouse beneficiaries of traditional and Roth IRAs must also take RMDs by year-end, starting the year after the original owner’s death. If multiple beneficiaries have been named to an inherited IRA, be sure to split the account by December 31 of the year after the owner’s death. That way each beneficiary can use his or her own life expectancy for required withdrawals. If not, then the withdrawals will be based on the oldest beneficiary’s life expectancy. Also, to receive a 2016 charitable tax deduction, contribute by the 31st. Last-minute donations can be made on a credit card or to a donor-advised fund. Reference: Kiplinger’s (January 2016) “15 Deadlines Retirees Can’t Afford to Miss in 2016” #HoustonAssetProtection #IRA #401k #HoustonEstatePlanning #SocialSecurity #CharitableDonation #RothIRA #TaxPlanning #Medicare #RequiredMinimumDistributionRMD #RetirementPlanning

Although combining a conversation about Alzheimer’s with a family visit over the holidays may not seem like a great idea, the timing could be right. Alzheimer’s impacts entire families because of the need for caregiving, the potential for its significant expense, as well as the risk that someone will take financial advantage of an Alzheimer’s sufferer. The likelihood of Alzheimer’s affecting a loved one grows greater as they get older. The time to talk is while everyone can share in a forthright but rational conversation resulting in an agreement on putting protections in place. A good first step is to speak with an elder law attorney to examine your loved one’s will and financial affairs. He or she will offer suggestions for protecting your loved one in the event he or she needs dementia care. Also, before disease strikes, it’s time to consider Medicaid planning. Smart Medicaid management can prevent families from having to spend all of the assets in order to keep a family member in a nursing home. Medicaid “look-back rules” on the transfer of financial assets can be complex, and understanding them in time to react can be particularly important for moderate-income families. It’s also a good idea to put an alert system in place so that your loved one’s long-term care policy doesn’t lapse. All of this may seem like a painful conversation to have over a holiday meal, but do it now while you can. Reference: Bankrate (November 24, 2015) “Talking turkey about Alzheimer’s” #PayingforaNursingHome #MedicaidPlanning #HoustonEstatePlanning #HoustonElderLaw #MedicaidPlanningLawyer #MedicaidNursingHomePlanning #RetirementPlanning #LongTermCarePlanning

A comprehensive estate plan will lay out what is to happen to significant assets, and these plans are

: $175,100 Dementia: $278,000 These potential medical expenses must be considered in retirement and estate Reference: MarketWatch (July 7, 2016) “What to know about Alzheimer’s and retirement planning” #EstatePlanningLawyer

Elder law attorneys who are also well-credentialed in estate planning can assist you plan for retirement

Estate Planning. These laws are different from one jurisdiction to the next. With an international move, your estate planning may no longer be valid, so talk with an experienced international estate-planning attorney.

In addition, your estate planning attorney may suggest that you one day use a 529 plan as an estate-planning tool. 529 plans offer a unique opportunity: the value is removed from your taxable estate, but you are