Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. This is the second in a two-part series on Roth IRAs. The first part reviewed the basics of Roth IRAs. (Click here for the first article in the series.) This second part looks at two advanced planning strategies. The first advanced planning strategy is to use a Roth IRA to maximize the deferral on an inherited IRA. Prior to the SECURE Act, beneficiaries could … [Read more...] about Roth IRAs Can Be a Great Planning Strategy: Advanced
Roth IRAs Can Be a Great Planning Strategy: Basics
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. This is the first in a two-part series on Roth IRAs. This first part will look at the basics of Roth IRAs. The second part will look at more advanced planning strategies. An Individual Retirement Account (IRA) is a savings vehicle in which a deduction may be taken upon contribution (with limitations). The maximum contribution in 2021 is $6,000, and those age 50 and … [Read more...] about Roth IRAs Can Be a Great Planning Strategy: Basics
Reasons an Estate Plan Could Be Challenged: Part 1 – Formal Requirements
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Estate Planning is essential for many reasons, which are set forth in prior articles. Links to these articles are set forth at the end of this article. This series will focus on how an Estate Plan could be challenged. This series will show the importance of doing Estate Planning in the right way. This article will focus on the formalities of an Estate … [Read more...] about Reasons an Estate Plan Could Be Challenged: Part 1 – Formal Requirements
Estate Tax Exemption Amounts to Increase
by Justin M. Kennedy Litherland, Kennedy & Associates, APC, Attorneys at Law The IRA has announced the new Estate Tax Exemption amount (hereinafter “Exemption amount”) for 2020. The new Exemption amount will be Eleven Million Five Hundred and Eighty Thousand Dollars ($11,580,000). This Exemption amount is per U.S. Citizen – meaning a married couple may pass over Twenty-Three Million dollars Estate Tax free ($23,160,000 in 2020). To provide historical context, in 2002 the Exemption … [Read more...] about Estate Tax Exemption Amounts to Increase
Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. TOD (Transfer on Death) designations, POD (Pay on Death) designations, and beneficiary designations can be useful in the right circumstances. Each of these tools allows for an automatic transfer to the named beneficiary at the death of the owner. But these tools can have a few shortfalls. First, if the named person predeceases the owner, typically it will not be … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
The Little Things May be the Most Important
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Often, the smallest things have the most sentimental value. Your grandmother’s silverware or your grandfather’s railroad watch could connect you to them in a special way. Your mother’s ring or your father’s Boyscout bugle could hold a special place in your heart. Your sports memorabilia could connect you to one of your children in a unique way. You may want those … [Read more...] about The Little Things May be the Most Important
Tax Tips after New Year
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. The ball has dropped in Times Square and we’ve bid farewell to 2018. But there are still a few things we can do to adjust our tax liability for 2018 before filing tax returns on April 15. First, you’ll need to organize all your tax records. That way, you’ll have some idea of what your tax liability might be. After you’ve organized your tax records, if you find you … [Read more...] about Tax Tips after New Year
Good News for those interested in Medi-Cal Eligibility who have 529 Education Accounts
by Justin M. Kennedy Litherland, Kennedy & Associates, APC, Attorneys at Law Effective January 1, 2019 the principal and interest of 529 education accounts (college savings plans) are exempt assets for Medi-Cal eligibility purposes (AB 1785). Let’s look at an example: Ten years ago, Margaret set up 529 education accounts for each of her four grandchildren and each year Margaret deposited $5,000 per grandchild into the 529 education accounts. Currently, these 529 education accounts … [Read more...] about Good News for those interested in Medi-Cal Eligibility who have 529 Education Accounts
Selecting an Agent
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. A Secret Agent may be very important to protecting the nation. Your Agent is just as important for your protection. An Agent is the person who makes financial decisions for you under a Financial Power of Attorney or makes medical decisions for you under a Health Care Power of Attorney. The Agent under your Financial Power of Attorney may act for you when you aren’t … [Read more...] about Selecting an Agent
SALT and Non-Grantor Trusts
by Justin M. Kennedy Litherland, Kennedy & Associates, APC, Attorneys at Law As we start a new tax year, it may be time to revisit some of the provisions of the Tax Cuts and Jobs Act, which increased the standard deduction to $12,000 per person or $24,000 per married couple. For those who do not itemize their deductions, this may be great news. However, for those who do itemize, there may be some significant tax consequences in the new law. The new law included a deduction cap of ten … [Read more...] about SALT and Non-Grantor Trusts
