Below you'll find a list of all posts that have been categorized as “Estate Planning”
For couples living in a community property state, a brokerage account can offer unique tax benefits—especially when it comes to estate planning and investment flexibility. Two of the biggest advantages are the step-up in basis and the freedom to liquidate investments on your own terms. 1. Step-Up in Basis at the First Spouse’s PassingIn a community property state, when one spouse …
The Tax Cuts and Jobs Act (TCJA), passed in 2017, ushered in sweeping changes to the U.S. tax code—reducing tax rates, doubling the standard deduction, limiting certain itemized deductions, and increasing estate tax exemptions. But many of these provisions were temporary, and without congressional intervention, they are set to expire at the end of 2025. If Congress allows the TCJA …
It may be a wise financial choice. It may be a good idea for a woman to retire later rather than sooner. Leaving the workplace after 65 may help position a woman for slightly greater retirement income and reduce some of the pressure of funding her “second act.” Women tend to receive smaller Social Security payments than men. This doesn’t …
After you marry, to what degree should your financial lives be shared? Many couples who marry also wed their finances together. Whether they partly or fully merge their finances, many couples may see more advantages than disadvantages to taking this step. Some young married couples decide to create joint accounts early. Without a joint checking or savings account, the matter …
A self-created last will and testament may lead to problems. As an early step in estate planning, you may be tempted to write your own will. There are some good reasons why you shouldn’t. While do-it-yourself wills may be cost-effective and make the process of will creation relatively simple, they also have shortcomings. DIY wills tend toward the basic and …
Inattention and procrastination can hurt family wealth. Some estate planning is better than none, but sometimes people address wealth transfer issues inadequately or ineptly when they tackle the task. Here are some classic miscues. Waiting too long. A wealthy individual may postpone estate planning until too late in life, which may present obstacles due to diminished faculties or declining health. …
How much can you gift in a year, and a lifetime? Federal tax rules allow you to give away millions of dollars during your lifetime. You can make five-figure gifts of money or property to other individuals in any given year. These gifts may be made without tax consequences … as long as they fall within the IRS annual …
Whether nurturing the values of children, fulfilling charitable goals, or making investment decisions that affect their own as well as their beneficiaries’ financial security, women play a central role in establishing and preserving family wealth. Consider these statistics:1 Women now control more than half of the investment wealth in the United States. 48% of estates worth more than …
Discussing the transfer of wealth from parents to children can be uncomfortable for both parties. Yet by introducing your kids/grandkids to the wealth management process from a young age, affluent families may be able to diminish family tensions later in life and help ensure that the planning tradition passes intact to future generations. Closing the Communication Gap Opening the discussion …
Layoffs are a fact of corporate life as companies cope with economic cycles and global competition. If you get caught in a corporate downsizing and you are not immediately moving to a new employer, you commonly have three options for your retirement plan assets: Leave your money in the current plan. Take a cash or “lump sum” distribution. Transfer …
Marriage affects your finances in many ways, including your ability to build wealth, plan for retirement, plan your estate, and capitalize on tax and insurance-related benefits. There are, however, two important caveats. First, same-sex marriages are recognized for federal income and estate tax reporting purposes. However, each state determines its own rules for state taxes, inheritance rights, and probate, so …
