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Taxes Taxes Taxes: What You Need to Know

Taxes Taxes Taxes: What You Need to Know

by | Jan 7, 2025 | Podcast

Taxes

Key Takeaways | Taxes Taxes Taxes: What You Need to Know

Most people don’t have issues with taxes when it comes to estate plans.

Gift and estate taxes are paid by the giver, not the receiver.

In 2024, the annual gift tax exclusion is $18,000 per person.

You can give away almost as much as you want without tax implications.

Medicaid has different rules regarding gifts compared to tax rules.

Capital gains tax rates are typically less than income tax rates.

You can get a capital gains exemption on your home if lived in for 2 out of 5 years.

Inherited assets receive a stepped-up tax basis, reducing capital gains tax.

IRAs must be owned by individuals, not trusts, unless inherited.

Most of the time, gift taxes rarely apply to the average person.

Episode Notes:

In this episode of the Miller Estate and Elder Law Podcast, attorney Bill Miller discusses the intricacies of taxes related to estate planning. He covers three main types of taxes: income taxes, gift and estate taxes, and capital gains taxes. Bill emphasizes the importance of understanding how these taxes work, particularly in relation to trusts and Medicaid. He clarifies common misconceptions about who pays these taxes and provides insights into tax exemptions and implications for IRAs. The episode concludes with a reminder to consult with a CPA for specific tax advice.

Notable Moments:

(00:00) Introduction to Estate Planning and Taxes

(06:05) Gift and Estate Taxes Explained

(12:01) Navigating Capital Gains Tax

(20:50) IRAs and Tax Implications

(26:07) Conclusion and Key Takeaways

 

 

 

 

 

 

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bill@millerestateandelderlaw.com

2024 Estate Planning Goals: A Year in Review

2024 Estate Planning Goals: A Year in Review

by | Jan 2, 2025 | Podcast

2024 Estate Planning Goals

Key Takeaways | 2024 Estate Planning Goals: A Year in Review

Planning ahead can prevent family difficulties during crises.

There are three essential documents: power of attorney, advanced directive, will.

Trusts can protect assets and provide for children.

Dementia care requires a roadmap for families.

Long-term care insurance can leverage assets effectively.

Beneficiary designations alone are insufficient for estate planning.

Proper planning can protect assets from nursing home costs.

HIPAA authorizations are crucial for medical decision-making.

Self-help estate planning often leads to inadequate documents.

Consulting professionals is vital for effective estate planning.

Episode Notes:

In this episode of the Miller Estate and Elder Law Podcast, attorney Bill Miller discusses the critical importance of estate planning and elder law, emphasizing the need for proper legal documents to protect families from the challenges of long-term care. He shares real-life stories illustrating the consequences of inadequate planning and outlines essential documents such as powers of attorney, advanced directives, and wills.

The conversation also covers the benefits of trusts, the complexities of navigating dementia care, and the significance of long-term care insurance. Bill provides insights into strategies for paying for long-term care and protecting assets, urging listeners to take proactive steps in their planning.

Notable Moments:

(00:00) Introduction to Estate Planning and Elder Law

(08:48) Understanding Trusts and Their Benefits

(17:54) Long-Term Care Insurance: A Smart Investment

(25:00) Protecting Assets and Planning for the Future

 

 

 

 

 

 

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10 Things You Should Do to Get Your Estate in Order

10 Things You Should Do to Get Your Estate in Order

by | Dec 2, 2024 | Podcast

Get Your Estate In Order

Key Takeaways | 10 Things You Should Do to Get Your Estate in Order

Create or update your advanced directive for healthcare.

A durable financial power of attorney is crucial for decision-making.

Wills govern probate assets and should be updated regularly.

Trusts can provide asset protection and avoid probate.

Prepaid funeral plans can relieve family stress during difficult times.

Organizing financial accounts helps loved ones manage your estate.

Access to safe deposit boxes should be arranged in advance.

Verify account ownership and beneficiary designations to prevent issues.

Compile personal data, including passwords, for your family.

Designate personal property to avoid family disputes after your passing.

Episode Notes:

In this episode of the Miller Estate and Elder Law Podcast, attorney Bill Miller discusses the essential steps to get your estate plan in order. He emphasizes the importance of having advanced directives, a durable financial power of attorney, a will, and a trust.

The conversation also covers practical aspects such as prepaid funeral plans, organizing financial accounts, and ensuring access to safe deposit boxes. Bill highlights the significance of verifying account ownership and beneficiary designations, compiling personal data for loved ones, and designating personal property to avoid family disputes. This comprehensive overview serves as a guide to navigate the complexities of estate planning effectively.

Notable Moments:

(00:00) Introduction to Estate Planning Essentials

(06:31) Durable Financial Power of Attorney Explained

(12:35) Prepaid Funeral Plans: A Thoughtful Choice

(19:00) Compiling Personal Data for Your Loved Ones

 

 

 

 

 

 

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The Problems with Relying on Beneficiary Designations and POD Designations

The Problems with Relying on Beneficiary Designations and POD Designations

by | Nov 19, 2024 | Podcast

Beneficiary Designations and POD Designations

Key Takeaways | The Problems with Relying on Beneficiary Designations and POD Designations
 

Beneficiary designations can lead to unintended consequences.

Trusts offer more control over asset distribution.

Underage beneficiaries require special considerations in estate planning.

Conservatorship can be a costly and time-consuming process.

Planning for disabled beneficiaries is crucial to protect their benefits.

A revocable trust can help manage assets for minors effectively.

Estate planning should consider the order of death among family members.

Trusts can provide specific terms for asset management after death.

Beneficiary designations may avoid probate but can complicate matters.

Effective estate planning requires a comprehensive understanding of laws. Special needs trusts protect disabled beneficiaries’ assets.

Trusts can be beneficial for spouses on Medicaid.

Leaving assets to a non-disabled child can be risky.

Trusts provide better management of assets during incapacity.

Beneficiary designations may not cover all contingencies.

Trusts can help with tax issues and protect inheritances.

Continuity of asset management is essential for families.

Trusts allow for staggered payouts to prevent misuse of funds.

Trusts can address potential addiction issues in beneficiaries.

Not everyone needs a trust, but they can be very useful.

Episode Notes:

In this episode of the Miller Estate and Elder Law Podcast, attorney Bill Miller discusses the complexities of estate planning, particularly focusing on the implications of beneficiary designations and the advantages of using revocable living trusts. Through the story of Mr. Baker, learn about potential pitfalls, such as the impact on disabled beneficiaries and the challenges faced by underage heirs. The conversation emphasizes the importance of careful planning to avoid costly legal issues and ensure that assets are managed according to the deceased’s wishes.

In this conversation, Bill Miller discusses the importance of trusts—particularly special needs trusts—in estate planning. He emphasizes how these trusts can protect the assets of disabled beneficiaries, address potential tax issues, and ensure continuity of asset management and distribution. The discussion also highlights the limitations of relying solely on beneficiary designations and the advantages of having a revocable living trust.

Notable Moments:

(00:00) Introduction to Estate Planning and Elder Law

(06:48) Challenges with Underage Beneficiaries

(11:51) Protecting Disabled Beneficiaries

(19:00) Addressing Tax and Legal Issues with Trusts

(24:50) Comparing Trusts and Beneficiary Designations

 

 

 

 

 

 

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bill@millerestateandelderlaw.com

3 Types of Long-Term Care

3 Types of Long-Term Care

by | Nov 11, 2024 | Aging Parents, Blog, Elder Care Planning, Estate Planning, Long-Term Care

2024 Presidential Election

As we get older, we might find it harder to tackle everyday tasks, and that’s where long-term care comes in to provide support and manage quality of life. It’s not just about physical health; it’s also about feeling good emotionally and staying as independent as possible. Long-term care can help with tasks such as eating, bathing, mobility, and running errands, while still giving you or your loved one flexibility and independence to live their lives.

About 70% of people 65 years and older will need some form of long-term care in their lives, and it can be confusing to know what kinds of care should be considered. So whether it’s for you or a loved one, here are three of the more common forms of long-term care you may one day find yourself considering.

Three Types of Long-Term Care to Consider

Assisted Living

Assisted living facilities provide care for older adults who need help with daily activities but don’t require constant health assistance. These communities typically offer a variety of assistance levels, making them a flexible option depending on what individuals may need at different stages of aging. It can vary from 24/7 supervision to more independent setups where help is available when needed. This flexibility allows one to choose between living alone or in a group, depending on the care required. Many 55+ communities also fall into this category, where residents can enjoy independent living while having assistance with tasks like meal preparation, housekeeping, and personal care as their needs change.

Skilled Nursing Facilities

Also known as nursing homes, these establishments are ideal for those who require constant medical care and supervision. These facilities staff trained nurses who provide various services, like rehabilitation therapy, personal care, dietary services, and social activities. Skilled nursing facilities are ideal for those who are managing more serious health issues or injuries that require ongoing care and support.

Home & Community-Based Services

For many people, receiving long-term care in the comfort of their own home is their first preference. Home and community-based services allow individuals to remain independent while receiving the essential support needed. These services can include personal care assistants who help with daily tasks, meal delivery programs, transportation services, and adult day care centers. This option can often be more cost-effective than moving into a care facility, as it allows one to live in their own home.

Planning for the future and evaluating the options available for long-term care is a necessary step of aging. While the future is uncertain, and aging might bring up some unexpected challenges, it’s essential to have a strategy in place to protect your hard-earned assets and your health. By exploring your options now, you can ensure that you or your loved ones receive the proper care.

Contact Miller Estate and Elder Law

If you are looking into long-term care options, the experienced attorneys at Miller Estate and Elder Law are here to help guide you through the process. Contact us today at (256) 251-2137 or by filling out the form below.

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256-472-1900

bill@millerestateandelderlaw.com