Estate Planning is often misunderstood. People often think it’s only for the really rich, the really old, or both. But the truth is Estate Planning is appropriate for all of us. Any of us could have a tragedy strike, even early in life. And it’s not just our death that Estate Planning considers, it’s also for our incapacity. https://www.aaepa.com/2019/10/the-questions-of-estate-planning-part-3-when/ … [Read more...]
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The Questions of Estate Planning, Part 2: What
Estate Planning is often misunderstood. Some people think it only involves preparing a simple Will. Some think it only involves preparing a Will or a trust. How hard could that be? But it entails so much more than that. It involves coordinating all the various aspects of a person’s assets so they achieve the goals of the person. Typically, this involves a Will and / or a trust. But it also involves coordinating beneficiary designations on life insurance, IRAs, retirement plans, … [Read more...]
The Questions of Estate Planning, Part I: Who
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 Plan. https://www.aaepa.com/2019/11/reasons-an-estate-plan-could-be-challenged-part-1-formal-requirements/ … [Read more...]
Reasons an Estate Plan Could Be Challenged: Part 1 – Formal Requirements
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. https://www.aaepa.com/2019/11/reasons-an-estate-plan-could-be-challenged-part-1-formal-requirements/ … [Read more...]
Income Tax Basis in Estate Planning
Income Tax planning is an integral part of Estate Planning. The first article in this series examined the concept of income tax basis, how it is acquired, and how it is adjusted. This article examines what happens to the income tax basis of an asset when it is gifted or bequeathed. There are different rules for the basis of an asset that is gifted than one you own at death. That seems odd, but it’s true. Let’s look at an example. John owned 1,000 shares of a stock he purchased for $50 per … [Read more...]
