A health care agent is a person you appoint to make medical decisions on your behalf if you are incapacitated or unable to make any decisions. A Living Will (Advanced Directive) expresses your wishes about your health care including, but not limited to, resuscitation, life sustaining treatments (respirator, feeding tube, etc.) and withholding / withdrawing of life sustaining treatments. The Living Will is only effective when you are terminally ill or unconscious and unable to communicate your wishes. When it comes to making decisions regarding end of life issues, do you know your wishes or have you communicated those wishes…
A pooled trust is created by the person with special needs, a parent, grandparent, guardian, or a court. However, the trust is administered by a non-profit organization. The trust is funded by the disabled beneficiary’s assets. Each beneficiary has a separate account established, but for the purposes of investment and management of funds, the trust “pools” all these various accounts into one. However, upon the death of the disabled beneficiary, if there are funds remaining in the account, the trust pays to the State of Maryland, an amount up to the total amount of Medical Assistance provided to the beneficiary. The…
Retaining control and dignity as the end of life approaches is an often overlooked aspect of comprehensive estate planning. Regardless the size or value of your “estate,” proper planning should address these difficult issues. US News & World Report ran an article last week, How to Ensure Your Last Wishes Are Carried Out. As they outline, there are two primary ways to ensure your final wishes are followed: one is through legal documents, and the second is by communicating your wishes to those who may be involved in carrying them out should you become incapacitated. As regards legal documents, you’ll…
It is not uncommon for a large portion of your wealth to be concentrated in tax-deferred retirement accounts such as IRAs and 401(k)s. From an estate planning standpoint, planning for these qualified accounts brings its own sets of issues and concerns. Because of their tax-deferred nature, the tax consequences can be significant, and mistakes quite costly. The special nature of these funds also impacts charitable giving decisions. If you want to make sizable gifts during your lifetime, you may turn to your qualified retirement account(s) for these gifts. In so doing, however, you could meet head-on with negative tax consequences….
It certainly is understandable that no one enjoys a conversation about death – especially their own! And, with the estate tax exemption now set at $5 million for an individual and $10 million for a couple, many people may believe they have no reason to consult an attorney about their estate planning. But avoiding the topic of estate planning can mean unnecessary expense, confusion and conflict. SmartBusiness last week highlighted the fundamentals of a “well-thought-out estate plan,” with topics that everyone should consider – whether prince or pauper. Why do you need an estate plan? A comprehensive estate plan ensures…
A reader wrote recently to the business columnist at NWI with a common question: “My will says that my son’s share is held in trust until he is 25. What if he is married by 23 and has a baby? Does he still have to wait until he is 25 to get the money?” The reply was somewhat simplistic, I thought, explaining that perhaps it would be good to give the trustee wide discretion to distribute funds out of and terminate a trust established for your children. Certainly, a testamentary trust of this sort that distributes funds outright to the…
The 2010 Tax Relief Act brought significant changes to the estate and gift tax rules – and an excellent opportunity for you to review your estate planning goals, and the legal documents to achieve them. The new law is complex, and the rules are only in place for two years – this year and next. SmartBusiness recently ran an article highlighting some of the more important provisions: Estate Taxes. The estate tax exemption will be $5 million ($10 for a married couple), with a maximum tax rate of 35 percent. The new law also provides a “portability” feature of the…
SmartMoney recently ran a reminder to all possible victims of the estate tax. The fact is that you could have a taxable estate, and not even realize it. Most people assume that since they don’t “feel” wealthy, they don’t have to worry about estate taxes — but they don’t actually do the math. Your “taxable estate” includes (minus liabilities): proceeds from life insurance policies; your primary residence and any vacation and/or rental properties; retirement accounts, investment accounts; cars, furniture, collectibles, and the rest of your “stuff.” Plus any private business ownership interests (such as shares in a family business or…
As a recent Wall Street Journal Article points out, taking advantage of the low gift tax levels (while you still can) could save your family business a hefty amount in potential estate taxes. But transferring ownership can raise complicated succession and estate planning issues that you should consider carefully before giving away any stock. The recent tax law changes brought the gift tax threshold up to $5 million for an individual and to $10 million for couples in 2011 and 2012. Yes, that means you can give away that much now, without incurring a penny in gift tax. But, since…
Senior Life Care Planning helps seniors plan for their future and for what happens after they pass away. While it’s not a subject that people enjoy talking about, it’s a necessity for seniors. We help elderly people with all aspects of their current life and assets. One of the biggest areas we can help seniors with is Medicaid planning. Because Medicaid laws are constantly changing, it’s important to start the planning process as early as possible. We help seniors qualify for Medicaid and the benefits that come along with it. Estate planning is another area in which we can help…
Frederick, MD 
301-663-9230
