Is it a Gift?
By Tammy Zilske, Long-Term Care Planner, Certified Medicaid Planner™
Many years ago, my husband and I took our four-year-old son to a park, where another child was having a birthday party. Our son was a bit upset that he wasn't invited to join in the festivities. We had a rare creative moment: we bought a reduced priced cake, wrapped up toys from the back of his closet, and threw our son a fake birthday party.
Just as our son may not have fully understood and valued a “gift”, understanding how The Department of Human Services classifies a gift can also be confusing.
Here are common questions we get at the law firm about gifting:
Six Things to Consider When Writing Your Will
By H. Amos Goodall, Jr., CELA
Procrastination is always a problem. Thinking about dying often makes us anxious. Still, there are six things to consider so that your estate is properly handled.
Nonprobate property:
Your will controls only property in your estate. Certain property transfers automatically: most jointly owned property (called joint tenants with right of survivorship or tenants by the entirety), “payable on death” accounts, insurance proceeds, annuities and IRAs all usually go directly to the named beneficiary rather than passing through probate. These forms of ownership are generally less flexible than a will, and most are still taxable. More important, they are often outdated and inconsistent with your estate plan, and often less property gets held back to carry out your plan.
Major Changes to the Tax Code for Retirement Accounts
By Landon Hodges, Esq.
As part of the spending bill passed by Congress and signed by the President in December 2019, the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”) is now law and is effective beginning January 1, 2020. This law makes major changes in the way required minimum distributions in IRAs and Roth IRAs are treated as you age and when they are inherited by your beneficiaries. Prior to the SECURE Act, all owners of an IRA were required to begin taking required minimum distributions (RMDs) from their IRAs once they attain age 70½. Once the account holder passed away, the RMDs a non-spouse beneficiary must take were determined based on the life expectance of the beneficiary. For example, if you designated a 40-year old child as a beneficiary of your IRA, he or she may stretch those RMDs across his or her life expectancy, which allowed beneficiaries to stagger the income taxes across a larger period of time while taking advantage of tax-free growth on the funds remaining in the IRA.
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