The loss of a loved one is tough to begin with, but if the loved one left debts behind, it can be even tougher. Family members generally should not have to pay for a decedent’s debts, but it is important to know your rights because collection agencies may target the decedent’s relatives. Usually the loved [...]
When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While a 401(k) provides protections for a surviving spouse, an IRA does not. Because the 401(k) is an employee-based retirement system, [...]
As many of you know, the estate tax expired on January 1, 2010. It remains to be seen whether Congress will reinstate it before it returns in 2011, but the fact that there is currently no estate tax can have unintended consequences for spouses. Standard language found in many estate plans could leave spouses with nothing. [...]
Many people think that estate plans are for someone else, not them. They may rationalize that they are too young or don’t have enough money to reap the tax benefits of a plan. But as the following list makes clear, estate planning is for everyone, regardless of age or net worth. 1. Loss of capacity. [...]
One important reason to have a will is to be able to name your executor (also called a personal representative). An executor is the person responsible for managing the administration of your estate after you die. If you don’t choose an executor, the court will choose one for you. The first decision is whether to [...]
Although your life insurance policy may pass to your heirs income tax-free, it can affect your estate tax. If you are the owner of the insurance policy, it will become a part of your taxable estate when you die. While the federal estate tax is currently zero, the exemption will be $1 million and the [...]
Many of my clients think that once they put an estate plan together, they can put the documents in the safe and throw away the key. They feel reassured that their future is properly planned and they can stop worrying. Well, this is a big mistake. It’s a big mistake because as time goes by, [...]
Losing a loved one is often a very emotional and sometimes traumatic time for family members and friends. Unfortunately, during this period, a lot of issues must be dealt with in a short amount of time, such as notifying family and friends, communicating and coordinating with a Boston area funeral home as well as locating [...]
