At the very moment IRAs joined the retirement savings universe in 1974, so did Required Minimum Distributions (RMD). The government was more than happy to provide a tax-deferred way to save for the future, but it came with a future reckoning—paying taxes on all the contributions and on all future growth whenever an IRA owner began to take distributions. And [...]
“What in the world does that mean?” I can’t tell you how many times I’ve been asked that question during more than 30 years in the financial industry. Clients naming beneficiaries on IRAs, 401(k) accounts, annuities or insurance policies stop dead-in-their-tracks when asked to decide whether they want beneficiaries to receive proceeds from their account Per Capita or Per Stirpes. [...]
Why does everyone think estate planning is so hard? You just split it equally among your heirs and you’re done, right? That’s a simple way to do it, but often, not the best way. Everybody’s family is different and you need to think about the specifics of your family; What’s their situation?; How do you want them to benefit [...]
It wasn’t really a secret, but the IRS didn’t make a lot of noise about it either. In March 2023, the agency quietly changed the rules, issuing Revenue Ruling 2023-2 which has a substantial impact on estate planning and irrevocable trusts. In the last 10 years, irrevocable trusts have been used more frequently to protect family assets from being [...]
When Aretha Franklin, the Queen of Soul, died in August 2018 she left behind a legendary career and a massive music legacy that touched millions of people. She also left an estate worth $80 million and a legendary family controversy because no one could find a Will, a Trust, or any kind of estate plan that outlined her wishes. [...]
Officially it’s called the Tax Cuts and Jobs Act (TCJA). More commonly it’s known as the Trump tax cuts. No matter what you call it, the provisions of the Act created in 2017 are set to expire on December 31, 2025. The TCJA made massive changes for businesses and individuals. A tax cut on corporate profits A restructuring of [...]
When you hear the words “Estate Planning” there’s a certain picture that pops into your mind. Most people think of it as having a plan that distributes the assets you’ve accumulated during your lifetime to the people and organizations you want to benefit after you’re gone. And that picture would be exactly right. But there’s a part of estate planning [...]
The legal part of the divorce is behind you and you’re a single mom. Now, besides making a living and all the work that goes with that, you’re also responsible for the care of minor children—little people whose daily lives and long-term future depend on you. How will they be cared for if something happens to you? Will they be [...]
I’ve written about this before, but I recently had an experience that reminded me of all the financial things that have to be handled when a spouse dies. In this case, a long-time client of mine died on a Monday. On Tuesday his wife was on the phone. She said, “You always told me to call you if anything happened [...]
You’re creating your estate plan. Part of it outlines how you want your estate handled when you die. But there’s another part giving instructions about what happens if you become incapacitated and can’t make your own decisions. In that case, it’s imperative that you have a financial power of attorney document. In the financial power of attorney (FPOA), you name [...]
Stay In Touch