Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. This is the third article in a series. The first article focused on the use of UTMA / UGMA accounts. The second article focused on 529 plans. This third article focuses on ABLE accounts. ABLE accounts are like Section 529 plans. But, while 529 plans are for education expenses, ABLE accounts (under Section 529A) are for qualified disability expenses. While a 529 … [Read more...] about ABLE Accounts
When You Love Your New Spouse, But You Love Your Kids More
Whether You Should Disinherit Your New Spouse and How California Law Protects Your Omitted Surviving Spouse by Magdalena A. LaBranch-Gonzales Litherland, Kennedy & Associates, APC, Attorneys at Law What happens if you marry your spouse after you created your estate plan but they are not mentioned in your plan when you die? California considers that person an “omitted spouse.”[i] An “omitted spouse” is a spouse who married the decedent after the estate plan was already created but … [Read more...] about When You Love Your New Spouse, But You Love Your Kids More
What Are 529 Plans and What Are Their Advantages?
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. The prior article in this series examined the use of UTMA and UGMA accounts. This article will focus on 529 plans. The next article in the series will examine ABLE accounts. A 529 plan, otherwise known as a qualified tuition plan, is a tax-sheltered way of saving for education. 529 plans are sponsored by states, state agencies, or educational institutions. For a … [Read more...] about What Are 529 Plans and What Are Their Advantages?
What are UGMA and UTMA Accounts?
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. UGMA and UTMA accounts are accounts in which a custodian holds assets for a minor. An UGMA account is one under the Uniform Gift to Minors Act. An UTMA account is one under the Uniform Transfers to Minors Act. States which have such accounts have rules which can vary slightly. UGMA accounts must end when the minor reaches age 18 (or other age in the state statute), … [Read more...] about What are UGMA and UTMA Accounts?
New Tax Proposals
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Representative Alexandria Ocasio-Cortez (D-NY), one of the new class of legislators in the House of Representatives, has suggested the rate of income taxation for high-earners be raised. She is suggesting a top rate for those making over $10 million per year be increased to 60% or 70%. She’s suggesting the proceeds could be used for a “Green New Deal” or other … [Read more...] about New Tax Proposals
Medi-Cal and Crowdfunding – Why Crowdfunding May Cost You Medi-Cal Eligibility
by Magdalena A. LaBranch-Gonzales Litherland, Kennedy & Associates, APC, Attorneys at Law Crowdfunding or fundraising websites, such as Kickstarter, YouCaring, and GoFundMe[i], are quickly becoming a popular source for donations where ordinary people may raise money from others for anything from new inventions to helping a neighbor or family member in need. Over time, crowdfunding has morphed into a platform to request finances for anything. The most significant increase may be the … [Read more...] about Medi-Cal and Crowdfunding – Why Crowdfunding May Cost You Medi-Cal Eligibility
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
