Retirement Watch Weekly
Annuities – How Not to Run Out of Income in Retirement
Running out of income is the biggest fear of most retirees. Annuities often are the best way to avoiding running out of income. Yet, few people take advantage of this opportunity, and many who do buy annuities make the wrong decisions. That is because annuities are complicated, and commissions can give sales people the wrong […]
Survival Guide for Family Limited Partnerships
The family limited partnership has been widely-used in estate planning for years. The benefits are so significant that for almost as long the IRS has been trying to curtail the tax advantages of FLPs. While some of the IRS efforts have been successful, taxpayers also logged some victories. In addition, the IRS successes were in […]
Medicaid Nursing Home Rules Toughen
People who plan to have Medicaid pay for their nursing home care are in for some big surprises. A new law that has not received much publicity changes the rules. Medicaid is the program that pays the medical expenses of the nation’s poor. Medicare is the program that pays some medical expenses of older Americans. […]
Important Medicaid Update for Heirs
The new uncertainty over Medicaid eligibility is not the only reason Medicaid should not be the centerpiece of your long-term care plan. Another concern is that your heirs might receive an unpleasant surprise from the state. When Medicaid decides someone is eligible for it to pay for nursing home care, the individual is told that […]
Boomers Retirement Housing Surprises
The Baby Boomers surprised forecasters as they went through life, and they changed many aspects of the economy. It looks like they have another series of surprises in store. The Boomers’ choices of retirement homes might be very different from what many people are expecting. These choices are important not only to those who build […]
529 Plans Equalized, Estate Planning Should Adjust Accordingly
The recent deficit reduction law gave a boost to 529 prepaid college plans. There are two types of 529 plans: prepaid plans and savings plans. Under prepaid plans, the state guarantees that tuition and fees are covered by an amount determined today, even if inflation or investment returns are different from what was anticipated. The […]
Should you put your IRA in a Trust?
Many owners of substantial IRAs hope their IRAs become nest eggs for their children or grandchildren. Their estate plans include strategies that let the IRAs, when inherited, compound for as long as possible – perhaps decades. That means selecting the right beneficiaries, and being sure the beneficiaries are well-advised about their options. Unfortunately, beneficiaries often […]
IRA Estate Tax Discounts – An Update
Your heirs will enjoy only the after-tax value of your IRAs and other retirement accounts. Can this difference be reflected in the estate tax value of the accounts? An IRA is included in the owner’s estate. If the estate is valuable enough, it is subject to the estate tax. After heirs inherit an IRA, the […]
