If you haven’t updated your power of attorney documents in many years, it might be worth having them reviewed to see if you can take advantage of some recent changes in the tax laws. If you’re ever near death and unable to manage your affairs, your agent may be able to make some smart financial moves that will dramatically reduce taxes for your heirs. But your agent can do this only if your power of attorney
Many people have an instinctively negative reaction when they hear the term “prenuptial agreement.” That’s because, when prenups first became popular, they were often seen as weapons by which rich spouses took advantage of less wealthy, less sophisticated partners. A person who got engaged and said, “I want a prenup” was often seen as unromantic at best and scheming at worst. But the truth is, prenups often provide important advantages for both partners. They’re not always
Ken and Judy are a couple in their 30s. They recently bought a home, and they have a small child. But apart from some home equity, a retirement account at work and a life insurance policy, they don’t have a lot of assets or investments. Do they really need estate planning? Can’t they get by with a simple will from the Internet? The truth is, even a couple like Ken and Judy can benefit from a
It’s important to have access to the originals of your power of attorney documents, because a photocopy sometimes won’t be accepted. Sometimes an attorney keeps the originals, and sometimes the client keeps them. Both are good ideas. But either way, make sure you can access them when you need them. If you keep them yourself, put them in a safe place. And if your attorney keeps them, be sure you leave enough time to obtain them
When Marc MacGinnis was in the hospital awaiting surgery, he asked his friend Brent to prepare a will for him that would leave half of his estate to Brent and half to Marc’s sister, Susan. Brent downloaded some will forms from the Internet, but Susan then suggested that she contact a lawyer to set up a trust instead. She said this would be better because it would avoid probate. Susan never talked to a lawyer, and
What’s the legal status of a child who was conceived after a parent’s death? That question would have been ridiculous not many years ago, but with advances in fertility treatments and the ability to freeze embryos and store sperm for later use, a number of children are now being conceived after one biological parent has passed away. This has created a number of legal issues. For instance, the Supreme Court recently decided whether twins who were
A new 3.8% tax on investment income will take effect in 2013, and anyone who has significant investments or who manages a trust should be planning for it now. The tax was included in President Obama’s health care law. In the past, many people didn’t plan for the tax because they thought the law might be struck down by the Supreme Court. But now that the Supreme Court has upheld the law, the tax will take
An enormous opportunity for families to reduce their estate taxes – and in some cases, save millions of dollars – will end on December 31, 2012. If there’s a chance you can take advantage of these savings, it’s wise to act immediately, because unless Congress changes the law, the window of opportunity will close permanently when the ball drops on New Year’s Eve. Between now and the end of the year, the lifetime exemption from the
Amazingly, it appears that most people who have given away real estate to family members in recent years have not filed a gift tax return with the IRS. The IRS requires a gift tax return to be filed any time a person makes a gift to someone other than a spouse of more than the annual exemption amount (which is currently $13,000). So if a person gives a piece of real estate to a child, or
Leaving an IRA to your children or grandchildren can be a great idea. That’s because withdrawals from the IRA can be “stretched out” over many years, and the IRA can grow tax-free for decades, giving your heirs a huge tax benefit. However, if you’re planning to leave an IRA to your heirs, it’s important to talk with them now about this strategy – so they understand how to take advantage of it. A recent study by
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