![]() ![]() Recent changes in the treatment of inherited retirement accounts, as well as life events like deaths, births, or marriages in the family, necessitate a close look at your estate plan at least annually. ![]() Late old age brings with it several financial considerations that can significantly impact your estate and tax situation. Keeping Your Affairs in Order: How to Limit Your Potential Taxes A variety of trusts are created to preserve family wealth, from simple to complex trusts used to extend wealth across many generations. These include outright gifts, loans to family members and special trusts. There are any number of ways to take money out of an estate. The gift tax lifetime exemption remains at $11.7 million, but even if there is no legislative action, on January 1, 2026, this will return to $5 million. Women with substantial net worth should be making plans for gifting and trusts now. Statistically, women do outlive men, so there needs to be a plan for the unexpected. What Challenges in Estate and Tax Planning Do Women Face in Particular?Īs the estate values of accomplished and financially successful women increases, they must consider what assets they will need to continue their current lifestyles, and what assets would be at risk, in case of death or divorce if they are still married. If you haven't started working on your estate plan, there's still time, but it's essential to speak with a Lynchburg estate planning attorney like Robert W. Additionally, steps should be taken to minimize the tax liabilities that heirs might face upon the individual's passing. ![]() Generally, someone in late old age is often widowed and, if they are well-to-do, has more assets than they are likely to spend in their remaining years, considering reserves needed for potential long-term care.Īt this stage, it's crucial for individuals to have a comprehensive estate plan in place, including a last will and testament, trust, and named beneficiaries on retirement and investment accounts. What's Considered Late Old Age?īefore delving into specific strategies, let's first define "late old age." This phase of life varies from person to person rather than relating to one particular age and depends on factors such as health, mental status, family history, and even luck. In this article, we'll explore essential financial planning strategies for late old age, focusing on minimizing tax burdens and safeguarding the value of your estate. Defining “late old age” must consider factors like health, mental status, family history and plain old luck, says a recent article from Financial Advisor, “Tax-Smart Wealth Transfer Tips For Clients In Late Old Age.” It's a time when careful financial planning can make a significant difference in ensuring that your accumulated wealth goes to the people and organizations you choose, rather than to the taxman. At this stage, individuals are typically well into retirement, possibly widowed, and have accumulated substantial assets. This phase, often referred to as "late old age," presents a unique set of challenges and opportunities for estate planning. As we reach our later years, Lynchburg residents often find ourselves contemplating our legacy and what we will leave behind for our loved ones and cherished causes. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |