Newman Law Group

June 2017 Archives

Proper trust preparation now pays off in the long term

When it comes to estate planning in California, many individuals may mistakenly believe that once they have prepared a last will and testament, they are all set. However, there are actually a variety of estate planning tools that can provide benefits and options to meet each individual's specific needs, not the least of which is a revocable trust. With the help of a knowledgeable attorney to make trust preparation less complicated, trusts can prove extremely useful in estate planning.

What are the tax issues re the inheritance of a 401(k) plan?

In California as well as nationwide, it is not unusual for an heir to be the named beneficiary of a 401(k)-retirement plan. One positive factor of inheriting a retirement plan is that the beneficiary usually does not have to wait for the decedent's estate to be probated to receive the retirement funds. If one's inheritance includes a significant 401(k), complex rules and regulations may require a consultation with one's estate planning attorney and, in some cases, with a tax expert.

Estate planning may use health savings accounts in some cases

Health Savings Accounts, or HSAs, are increasingly used in California and nationwide. At the end of 2016, there were about 20 million of these accounts in operation, which was a 20 percent rise from the year before. There are big tax benefits that may motivate some people to open an HSA as part of an estate planning program, but these are usually persons who are relatively healthy and wealthier than most.

Asset protection in long-term care planning requires foresight

Many people residing in California will prepare for the possibility of future long-term care assistance by directing that the expenses of that assistance be paid by federal Medicaid. However, the desire for that method of asset protection is easier said than done. That is because Medicaid has a myriad of qualifying rules that must be met to be qualified for coverage.