In Part 1, we explained how Social Security benefits are calculated and why the age you choose to start benefits can make a meaningful difference. This is Part 2 of our four-part Social Security series. Marriage, divorce, and the loss of a spouse can all affect Social Security benefits, sometimes more than people expect. In estate planning, we often see…
Category: Estate Planning
Exceptions to the 10-Year Rule. Who Is Treated Differently?
In Part 1, we explained the SECURE Act’s 10-year rule, which took effect in 2020. Most adult children who inherit a retirement account must now withdraw the entire account within 10 years. However, not all beneficiaries are treated the same under the law. This is Part 2 of our two-part SECURE Act series, outlining the key exceptions to the 10-year…
The SECURE Act and the 10-Year Rule. What Changed for Inherited Retirement Accounts?
In 2020, the rules for inherited retirement accounts changed in a significant way. For many years, most beneficiaries could “stretch” withdrawals from an inherited IRA over their lifetime. This meant they could take small required withdrawals each year based on their life expectancy, allowing the remaining funds to continue growing tax-deferred for decades. That assumption shaped many estate plans. Beginning…
What are Death Taxes, and What Do They Mean For Me?
A key component of estate planning is minimizing and planning for the taxes that might be owed. Each state has its own rules, so this post concentrates on Maryland. In Maryland, there are typically three potential taxes that might be owed when someone dies: estate tax, inheritance tax, and income tax. Estate Taxes Estate taxes are taxes imposed on your…
Who Pays the Bills if You Can’t Manage the Task
Some ideas to help you pay your bills when you may be slightly or very forgetful. So, let’s assume you are still safely living at home but you are worried that you might stop being able to manage your financial affairs before you realize you have stopped being able to manage your financial affairs. There are a couple of things…
The Complete Estate Planning Documents Guide for Beginners
Are you concerned about what it takes to plan your estate for your family after you have passed? Here we’ve provided you a step-by-step guide to understanding what it takes to have everything in order. What documents do you need? The key documents that every person needs for an estate plan: Power of Attorney form Advance Medical Directive Last Will…
Did Mom or Dad Have Life Insurance?
How do you find out if someone had life insurance after they have died? And if they did have it, who are the beneficiaries? It’s tough to figure out on your own since most life insurance companies won’t take any action to notify beneficiaries until someone reports the insured’s death. So where do you start? The first thing you need…
Your great Uncle died and left you all of his IRA accounts
If you are the beneficiary of a Traditional IRA account there are a few rules you need to be aware of. If the person who owned the account at the time of their death was someone you did not marry and they were at least 10 years older or younger than you, here are a few rules to keep track…
Have you checked your beneficiaries in a while?
There are four ways to give what we have to those we love at death: joint ownership, trusts, wills, and named beneficiaries.
Social Security Benefits for Surviving Spouses
Here’s a brief overview of Social Security Benefits for Surviving Spouses (even if you were divorced from your ex-spouse when he or she died).