Estate planning is a dynamic process that evolves with changes in your life, the law, and industry knowledge. If you’re considering amending your estate plan, it’s essential to understand the right steps to take. Why amend your estate plan? There are typically three main reasons, often referred to as the three Ls: Changes in law: Tax codes and estate laws can change, affecting your estate plan. Changes in life: This includes changes in health, finances, and relationships with family members. Changes in learning: New best practices or strategies might benefit your estate plan as the elder law ..read more

Estate administration, whether through probate after a loved one’s passing or trust administration, can be complex. You might wonder about the steps involved if you’re a trustee, fiduciary, or beneficiary.  Let’s break down the essential stages using the acronym E.A.T.T.T. E – Estate Open the Estate: Depending on the nature of the estate, you might need to: File your loved one’s will at the local probate court and have someone appointed as the executor or personal representative. If there’s no will or trust, petition the probate court to appoint an administrator or executor. If your lov ..read more

Navigating the complexities of taxes can be daunting, especially when it comes to understanding the nuances of deductions. One common question that arises is whether you can claim an elderly parent as a deduction on your tax return. Let’s delve into this topic to provide some clarity. The Criteria for Claiming an Elderly Parent Before you consider claiming your parent as a deduction, it’s essential to understand the specific criteria set by tax authorities: Duration of Care: Is your parent living with you, or are you taking care of them for more than half of the year? Financial Support: Are ..read more

Estate planning is a complex area of law, and sometimes, individuals may feel that they have been treated unfairly or overlooked in a loved one’s will. If you find yourself in such a situation, it’s essential to understand the legal avenues available to you. Grounds for Contesting a Will There are typically three primary grounds on which you can contest a will: Lack of Capacity: If you believe that the deceased lacked the testamentary capacity when they signed their will or trust, this could be a valid ground. For instance, if they were diagnosed with dementia or showed signs of cognitive dec ..read more

Today, we’re diving deep into the world of estate planning to discuss a topic that often raises eyebrows: the Irrevocable Life Insurance Trust, commonly known as an ILIT. What is an ILIT? An ILIT is an irrevocable trust specifically designed to hold and own life insurance policies. Once a policy is inside the trust, it’s out of the insured’s taxable estate, ensuring that the death benefit isn’t subject to estate tax upon the insured’s death. Why is this important? Many people mistakenly believe that life insurance proceeds are not taxable. While it’s true that the beneficiary typically doesn ..read more

Let’s begin with a better question. What if my beneficiary dies before I do, but my will is not updated to reflect this? This is when an anti-lapse statute can step in. This law has been recognized by the Uniform Probate Code. It is followed by any state that has adopted the Uniform Probate Code, such as Massachusetts. Here is an example of how it works. Bill and Mary created their will or their trust, and they state in the will/trust that their three children get everything equally. Their children, Mo, Larry, and Curly, will inherit when they pass away. However, Mo predeceases his parents ..read more

Under the Tax Cuts and Jobs Act, portability became a potential option for people with larger estates when dealing with the second-headed monster of estate planning. As I have previously explained in my videos and articles, the second-headed monster of estate planning is the estate death tax. The concept of portability deals more with federal estate death tax than state estate death tax. Portability is a benefit that can double the estate tax exemption for the surviving spouse of a married couple. Currently, the estate tax exemption is 11.7 million dollars. This means if you die tomorrow an ..read more

When making planning decisions for the future, there are several options to choose from. Two possibilities to protect your property are drafting a life estate deed or a Medicaid asset protection trust. A life estate deed may work on certain occasions, like helping avoid probate or getting a stepped-up basis for the remainder men or remainder persons, usually the children, that receive the home once the holder of the life estate interest has passed away. However, there are three significant disadvantages to using a life estate deed. The first major disadvantage is that Medicaid is still enti ..read more

It is sad to say elder abuse is a fairly common concept in our society. Even more tragic is that elder abuse is often at the hands of their own family members.   The stereotypical case might be an adult son or daughter that lives with an aging parent, and they are taken advantage of the situation. They may be a fiduciary or have a financial power of attorney and access to their parents’ checkbook. With this power, they can write checks or buy themselves gifts. They are living their lifestyle off their parents. This is considered financial exploitation.   You may also not ..read more

There are many differences between a will and a trust. In fact, it’s day and night and apples and oranges. One of the main differences is how much protection you have from the four-headed monster I have explained in previous videos and articles. This consists of probate court, estate taxes, financial creditors and predators, and long-term care costs.    A will is your admission ticket to probate court, which is the dreaded first-headed monster. Generally, a will is more simplistic in what it provides. For example, all it may say is who’s in charge and who gets your stuff after you ..read more