Tag Archives: applied

Is the Estate Tax Applied on Transfers to My Spouse?

There are many things to take into consideration when you are planning your estate, and there are those who make mistakes that yield negative consequences, because they do not know all the facts. This certainly comes into play when it comes to taxation, especially in the state of Connecticut. You pay taxes all of your life, on virtually everything: your property, your purchases, your income, your capital gains, hotel rooms, gasoline, etc., etc., etc. It would be logical to assume that you can pass away free of taxation, but in many instances, this is not the case. In this paper we will look at taxation as it applies to your surviving spouse. Federal Estate Tax and the Marital Deduction We have a federal estate tax that is applicable in all 50 states. This tax carries a 40 percent maximum rate, so it can take a heavy toll on the financial legacy that you are leaving behind to your family members. The existence of the tax is the bad news; the good news is that there is an unlimited mari


What Is Nursing Home Asset Protection?

The concept of asset protection is usually applied to potential lawsuits, but there is another type of asset protection that everyone should be concerned about. It can be hard to envision a time when you will not be able to take care of all of your own day-to-day needs, but the reality is that most senior citizens will eventually need living assistance. The figure is 70 percent according to the United States Department of Health and Human Services. Most seniors qualify for Medicare when they reach the age of 65, but Medicare does not pay for long-term care. There are those who can rely on family members and friends for assistance, but a significant percentage of elders ultimately reside in assisted living communities and nursing homes. These facilities are quite expensive, and long-term care costs are especially high here in Connecticut, where we practice law. It can easily cost you well in excess of $100,000 per year to reside in a nursing home, and people often require multiple year