estate planning degree
Estate Planning for the Middle Class
The Do’s and Don’ts for the Middle Class in Estate Planning:
Families should always consult with trusted legal advisors. It’s no secret that many unscrupulous people are out there, waiting to prey on concerned Baby Boomers and seniors. Use your best judgment and NEVER allow someone to pressure you into buying anything (be it insurance, legal assistance or management services). You are well-advised to get a second opinion when making your estate plan. A few hours with another lawyer (helping you understand some documents or legal issues) may cost a few hundred dollars, but when you are dealing with tens or hundreds of thousands of dollars, that will be money well spent. Trusts A trust is a legal device that gives a person (or group of people) the right to hold and manage specific financial assets. This is a very simple definition that avoids a lot of legal language. Be aware that trusts are usually quite complicated. Some trusts can be thought of as a new legal entity (much like a corporation or another person) that is required to spend its assets for specific purposes that the creator spells out ahead of time. People often establish trusts to avoid the costs and delays that can be associated with probate, to minimize or avoid taxation, to provide resources for individuals determined to be incompetent, to control how and when assets are distributed, as well as many other uses. There are several different types of trusts that people use for estate planning. While most fall into specific categories, it is important to understand that trusts are highly individual creations – one size does not fit all. Be wary of firms who offer a cookie cutter approach or a “kit” to create your own. Any trust (indeed all estate planning activities) should be designed with careful consideration and thoughtful legal consultation. Be aware that when establishing some trusts, you may limit your options in the future. A “revocable trust” may be established to set aside certain assets in the event that the individual becomes incapacitated. These assets never technically leave the person’s ownership, so the assets are still considered part of one’s estate when one applies to Medicaid for benefits. The value of a revocable trust is that you can designate a professional to manage your finances, receive income from the trust, and potentially reduce expenses associated with settling your estate at death. With a revocable trust the individual can change the terms of the trust at any time. An “irrevocable trust” is also referred to as a “Medicaid Trust.” Assets are transferred into a new legal entity that then owns those assets. These assets are then no longer considered part of your taxable estate. By shifting assets into the trust, you may now be eligible for Medicaid benefits, but subject to the specific “look-back” rules of your county (see below). When setting up the trust, you determine who will receive the assets, regular payments, and income from the assets. Irrevocable trusts may also be used as an entity to own one’s life insurance policy. This is a simplification of the process, so keep in mind that estate planning involves a lot of “moving parts” that should all be considered. Some types of transfers may result in tax liabilities and future financial limitations. Irrevocable trusts require that the individual give up some degree of flexibility with the assets and may be expensive to prepare. Once the trust is established, the individual gives up all rights to the assets that are included in the trust. You can not change the terms once it is finalized. A “credit shelter trust” is used to help an individual and her spouse maximize the federal tax credits they have when they die. This type of trust is also called a “bypass trust,” “A-B trust,” or “credit shelter trust plan.” Each individual is permitted to transfer a large (but limited) amount of assets to his/her heirs free of taxation. For a married couple, the tax credit is essentially doubled (since it is the credits of two people). When the first spouse dies, the estate passes to the other, but when the second spouse dies, only one credit is remaining. This trust allows the two tax credits to be used instead of just one. Be aware that the U.S. Congress may make changes to the estate tax laws, raising the credit, or eliminating it all together. You should consult with legal and financial advisors who have up-to-date knowledge of federal and state tax laws.
About the Author
I’ve been in the insurance and financial services field for 17 yreas and worked for some of the biggest and best like Metlife, Prudential and Allstate. My wealth of experience working with families and helping solve problems like retirement planning and college funding I believe should be shared with all. thats why i believe my input to this site will be invaulable
Professional job ideas with flexible schedule? Have degree. Something flexible, maybe part-time or summer off?
I have a year-round professional job now and a college degree. I have some time off and great benefits. I make a decent salary, slightly more than the average teacher. The job is okay, and there is room for advancement. Planning for a family in the near future… I would like to consider something more flexible or with more time off. I have considered real estate. I have also considered teaching to get holidays and summers off. My husband has a great job. What are some other legitimate ideas that would be stable? Thank you so much!
If your husband has a great job you might consider being a Full time mom
It is a very rewarding career
Ben Laves for Surrogate Somerset County Democrats Headquarters Grand Opening, Somerville, NJ 8-27-10
Bucks County Democrats announce endorsements
The Bucks County Democratic Committee held its annual endorsement meeting at Klinger Middle School in Southampton and endorsed its 2011 slate of county row officer candidates as well as county and state judicial candidates.