A testamentary trust is one of many different kinds of trusts which is recognized under Connecticut trust law and which is created for the purposes of controlling and protecting assets. There are many benefits to a testamentary trust, as well as certain limitations. Because there are different types of trusts, each with their own pros [ ] The post What is a Testamentary Trust? appeared first on Nirenstein, Horowitz & Associates P.C..
A special needs trust can provide important protections for someone who is disabled and who needs to qualify for Medicaid benefits. Special needs trusts can be used to protect assets owned or acquired by someone with disabilities. However, there are specific rules that must be followed for trust creation. Nirenstein, Horowitz & Associates can provide [ ] The post What are the Differences in First Party vs. Third Party Special Needs Trusts? appeared first on Nirenstein, Horowitz & Associates P.C..
A last will is considered by many people to be the estate planning tool of choice for people who are not very wealthy. In fact, this is not necessarily the case. You have limitations when you use a will. Lump sum distributions would be distributed to the heirs, and this can be a source of [ ] The post Wills vs.Trusts: Understand the Distinctions appeared first on Nirenstein, Horowitz & Associates P.C..
When you think about asset protection trusts, the subject of lawsuits may come to mind. There are in fact trusts that can be used to protect assets from legal judgments, but in this blog post, we are going to look at a different form of asset protection. Preserving Your Resources Anyone can be the subject of a lawsuit, but there are some people who are more vulnerable than others. When you evaluate your life circumstances and your financial position, legal actions may not concern you very much. Even if this is the case, asset protection trusts should be on your radar. This is because of the fact that long-term care costs can potentially consume everything that you consider to be your legacy. Why should you be concerned about long-term care costs when you are going to qualify for Medicare when you reach the age of eligibility? It is true that most senior citizens will qualify for Medicare coverage at the age of 65, but this program does not pay for long-term care. Many people question
People who have been able to accumulate significant wealth are undoubtedly aware of the potential imposition of estate taxes. On the federal level, the estate tax carries a 40 percent top rate, and this is a very big slice. The existence of this tax is especially disturbing to many people, because they see it as an instance of double taxation. After all, your estate is comprised of assets that you have left after you paid taxes all of your life. Why should a legacy that you are leaving to your loved ones be hammered down by 40 percent after you already paid so many taxes? This question is a good one, and there have been legislative efforts to eliminate the estate tax. However, it is a fact of life at the present time. On the federal level, the exclusion is $5.45 million. The portion of your estate that exceeds this amount is subject to the estate tax. The gift tax prevents you from giving gifts while you are living to avoid the death tax. The $5.45 million exclusion encompasses gifts
A living trust can be a good estate planning choice for a wide range of people. However, there are some objectives that a living trust will not accomplish. Let s look at the details. The Positives When it comes to the positive side of the ledger, a living trust can provide freedom and versatility. The person who establishes a living trust is called the grantor. The trustee is the trust administrator, and the beneficiary is the person who can receive monetary distributions from the trust. The grantor of a living trust will typically act as the trustee and the beneficiary throughout his or her life, so there is no loss of control. Many elders become unable to handle their own financial affairs at some point in time. With a living trust, you can empower a disability trustee to administer the trust in the event of your incapacitation, and this is a benefit. You name a successor trustee to handle the estate administration tasks after you are gone, and you name successor beneficiaries. Afte
The process of estate planning involves careful decision-making. You should act in an intelligent and informed manner so that you do not make mistakes that cause unintended negative consequences. With this in mind, we will look at special needs trusts in this post. People With Disabilities There is no one-size-fits-all estate plan, because every family is different, and every person is unique. When you have someone with a disability in the family, you should certainly act in a measured fashion when you are putting your estate plan together. Individuals who have special needs are typically enrolled in the Medicaid program. Medicaid is a health insurance program that is jointly administered by the federal government along with each respective state government. The Medicaid program is designed for people who have significant financial need. As such, if you want to qualify, you must be able to meet the income and asset requirements. For an individual, the asset limit in most states is jus