Dear Kiwi and Mango, My husband and I are ready to embark on our Estate Planning. This is the second marriage for both of us, and we aren’t sure whether to get a joint trust or separate trusts? I read somewhere that there is a benefit to separate trusts if one or both parties has […]
Why Set Up a Trust for Your Children or Grandchildren?
If you are considering transferring wealth to your children or grandchildren, a trust is usually the best method. It is almost always the best way to protect an inheritance from potential depletion due to lack of financial acumen, lawsuits, divorce, bankruptcy, medical bills, and even nursing home bills. A trust also provides you with more […]
The Top 10 Causes of Senior Driving Accidents
The population of seniors who are older than 65 has grown at a faster rate than any other age bracket, and they are continuing to drive longer than ever before. According to the Federal Highway Administration (FHA), there were 48 million licensed drivers ages 65 and older in 2020, which is nearly 70 percent more […]
New Federal Rule Sets Minimum Staffing Requirements for Nursing Homes — the Biggest Reform in Nursing Home Policy in Decades
A federal mandate that sets minimum staffing requirements for nursing homes was finalized by the Centers for Medicare and Medicaid Services (CMS) last week. Three final rules were issued to “fulfill President Biden’s commitment to support family caregivers, boost compensation and job quality for care workers, expand and improve care options, and improve the safety […]
How Estate Planning Helps You and Your Caregiver
Dear Angel, I have Parkinson’s and need lots of care, and I know things are just going to get tougher. My sister is my caregiver who helps me full-time. I heard that getting my estate planning and long-term care planning in order will not only help me but will help her, as my caregiver. If […]
Are Transfer on Death Deeds a Good Alternative to Estate Planning?
Q. I was recently discussing with my husband what would happen to our house in Annandale, Virginia when we are no longer around, especially since we don’t have our estate planning in place yet. One my friends’ parents recently passed away and the family was going through the nightmare of probate. I would never want […]
How Are Taxes Filed if One Spouse is on Medicaid and the Other Spouse Has an Irrevocable Trust? And Does Getting Social Security Change How Taxes Get Filed?
Q. Thank you again for working with our family last year to protect our parents’ assets, get our father approved for nursing home Medicaid, and set up an irrevocable Living Trust Plus for our mother. Now that it’s tax time, we have numerous questions. I’m helping my mother this year for the first time given […]
Does the Corporate Transparency Act Apply to Trusts?
Q. My wife and I recently acquired a rental property and are considering forming an LLC this year and exploring any other options, such as trusts. I heard that the Corporate Transparency Act went into effect on the first of the year and that there is required reporting of private beneficial ownership information. However, I’d […]
Retiree Confidence Is the Lowest in 15 Years! How You Can Plan Ahead for Retirement and Long-Term Care
About 10,000 Americans turn 65 every day, and though everyone’s financial situation is different, that means that millions of people are getting ready to retire each year. But according to a recent survey, many are not confident about how far their money will go! Results of the latest Retirement Confidence Survey by the Employee Benefit […]
Using LLCs and Asset Protection Trusts for Asset Protection of Rental Property
Q. I own a rental property in Springfield, Virginia, that’s just in my name. I heard the best way to protect my assets, should I be subject to a lawsuit, is by creating an LLC for my rental and deeding the house to the LLC. But I also know that your firm offers asset protection […]
Your House Is NOT Protected from Medicaid
Q. My mom and dad built our family home in Arlington 35 years ago. It’s been remodeled twice and expanded to enlarge the kitchen and add a master bedroom suite. Our family still hosts frequent gatherings in the home for holidays and birthdays. Mom and Dad had paid off the mortgage before Dad retired. So […]
Problems with Beneficiary Designations Part 2
Q. Last week, you wrote about why inheritance sometimes goes unclaimed, and how it’s a lot less likely when you have a trust in place. I read something about the downsides of beneficiary designations naming individuals and how they do not always solve the problem of probate and can actually cause many more problems than […]
The Ins and Outs of Reverse Gifting
Q. My daughter started her own business and made some good investments with her money, and became very successful. She recently told me that she wanted to transfer assets to my name to assist me with my living expenses, but she wants to give me a brokerage account with stocks worth much more than I […]
Farr Law Firm Now Filing Tax Returns for Our Clients
Q. My sister and her husband set up an irrevocable asset protection trust with your firm as part of their estate planning. She was trying to explain this type of trust to me, but I still don’t understand, so I signed up for one of your upcoming seminars. She is a very prepared person and […]
“Back Door” Roth Conversions: Should You Convert Your Traditional IRA into a Roth IRA?
Q. My husband and I are hoping to retire in five years, and we’re finally ready to do our retirement planning and estate planning. We both have significant amounts in traditional IRAs and are wondering if we should consider converting some or all of that money to a Roth IRA now, while the income tax […]
How Do You Handle Homeowners Insurance When Your House is in a Trust?
Q. We decided to get our estate planning documents done and our home is now in a revocable living trust. We feel good about taking this action because our loved ones will not be overburdened with the nightmare of probate when we die, among other things. A thought came to my mind recently. Are […]
How Do FDIC Insurance Coverage Limits Apply When It Comes to Trusts?
Q. I saw a sign about FDIC insurance at the bank yesterday and it got me to thinking about our family’s trust, and I was hoping you could provide some clarification. My understanding is that the FDIC insures up to $250,000 per depositor in eligible accounts at FDIC insured banks. That’s straightforward enough for regular […]
Now May Be a Good Time to withdraw $100K from Your Retirement Accounts, Penalty-Free!
Q. My wife, Patty, and I are in our late 50’s and have been hit hard by COVID-19. Luckily, neither of us got the virus, but financially, we have been struggling. I got furloughed from my job and Patty teaches yoga, and the yoga studio where she teaches, like so many others during this pandemic, […]
Are VA Nursing Homes Free for Veterans?
Q. My father is a Vietnam Veteran who will almost certainly need nursing home care in the future. Will the Department of Veterans Affairs (VA) nursing home system take care of him for free? Are VA nursing homes as good as private ones? Are there many VA nursing homes in the DC Metro area? And […]
How Can You Reduce Your Capital Gains Taxes?
Diane, at age 80, resides in the home she has lived in for nearly 40 years. When she initially purchased the home after her husband’s death, it cost only $25,000 (and she since put in $45,000 in improvements); today it’s worth at least $675,000. Diane’s only child, Michael, moved in with Diane several years ago […]