Could Deficit Reduction Take Your Life Savings?
This article discusses how long-term care costs can be a major financial drain. It looks at how the changes in Medicaid law could make it much more difficult to plan. It stresses the need for pre-planning. It briefly looks at Income Only trusts as a potential planning option.
Medicaid Changes Make Pre-Planning Essential
This article discusses how long-term care costs can be a major financial drain. It examines Medicaid as a possible way to pay for long-term care. It looks at how the changes in Medicaid law could make it much more difficult to plan. It stresses the need for pre-planning.
Preparing for Health Needs
The article looks at the financial and legal ways to plan for illness. As part of the financial portion, the article examines the use of Health Savings Accounts. As part of the legal portion, it examines the use of health care powers of attorney and health care directives.
Saving for Retirement: But What If I Need It?
Tax-deferred Leveraging of Savings
We all know the importance of saving for retirement. Saving through a tax-deferred vehicle like an IRA or 401(k) can be a great way to leverage those retirement dollars. If you defer tax on $10,000 and invest it at 7% for 30 years and then pay tax on the entire amount, you would have approximately $53,000 after taxes (assuming a 30% tax rate at all times). On the other hand, if you paid the tax on the $10,000 and paid tax on the 7% earnings each year, you would have only $29,000 after 30 years. Tax-deferred retirement plans are extremely popular. According to the Investment Company Institute (2000), Americans have $11.5 trillion in retirement plan assets. Most people focus on how to maximize retirement plan contributions and minimize required distributions from retirement plans. From a tax perspective, that makes a great deal of sense.
The Many Faces of Life Insurance
Life insurance is a unique asset. Because of its tax-favored benefits, it can be used to solve some of life's perplexing financial problems. Most people regard life insurance as a "protective" asset, and it is indeed one of the very best assets to protect against potential losses. But life insurance is also a major planning asset to develop and implement your financial and estate plan.
Joint Tenancy: Friend or Foe?
If you're like many people who don't have an Estate Plan, you probably hold some of your assets as Joint Tenants with Rights of Survivorship. This is a form of ownership where two or more people have their names on the title of an asset, and upon one owner's death; his or her share of the asset passes to the remaining owner(s). While there are advantages to joint ownership, there are many pitfalls to keep in mind.
An Executor's Responsibilities
If you are appointed as executor (also termed Personal Representative in some states) of someone's Will, the person who chose you as his or her executor has a great deal of trust in you. That person views you as someone who has the knowledge, the capability, and the understanding to manage his or her affairs in a manner that would fulfill his or her expectations. You should consider it an honor, but one with a great deal of responsibility.
Probate: What Is It and Why Should You Try to Avoid It?
The term probate is often thrown around as freely as the daily paper. People know the word, but they don't know the implications. Maybe they knew someone who "went through" probate after the loss of a family member. Generally speaking however, most don't really know what probate is or how it works, much less how to avoid it. They only know that it is something that happens to a person's estate after they die, and many assume it happens to everyone. In reality, probate does not happen to every estate and can often be avoided.
