Estate taxes are separate from probate expenses and final income taxes. Probate costs may often be avoided through proper estate planning tools, such as a revocable living trust, while final income taxes apply to any income earned during the year of death. Estate taxes, however, are a separate matter that can significantly impact the value of an estate passed on to loved ones.

Federal estate taxes can be substantial. Currently, assets exceeding the federal estate tax exemption are taxed at a rate of 40%, and these taxes are generally due within nine months after death. Because estate taxes must typically be paid in cash, families may be forced to sell real estate, business interests, or other valuable assets to satisfy the tax obligation. With proactive planning, however, many families can reduce or even eliminate estate taxes altogether.

Choosing the right executor for your will is one of the most important decisions you’ll make in estate planning. The executor handles the practical, legal, and emotional tasks after you die: locating assets, paying debts and taxes, communicating with beneficiaries, managing the estate’s finances, and distributing property according to your wishes. Pick well and the process will be smoother for everyone; pick poorly and your heirs may face delays, added costs, or conflict. Here’s a clear guide to help you choose the best person or professional for the job.

As people get older, they often need to rely on others for various kinds of help and are more likely to suffer from Alzheimer's disease or other forms of dementia. Consequently, as people age, they are more vulnerable to being financially taken advantage of, sometimes even by people they trust. A recent study by AARP estimates that financial exploitation costs adults aged 60 and older $28.3 billion annually.[1] Fortunately, there are some proactive steps that can be taken to prevent financial abuse before it occurs. In addition, older people and the family members and friends acting on their behalf have protective and remedial actions available if they discover that financial abuse has occurred.

To properly assist clients, elder law attorneys must juggle knowledge of a number of different public benefits programs, many of which have unique eligibility requirements. Additionally, with multiple planning strategies and instruments available to assist clients with public benefits, attorneys must also stay apprised of their distinctions. This blog is intended to provide both a definitional foundation and an up-to-date reference for the current year’s figures. It is best used as a supplement to your own research; it is not intended to be, and should not be considered, legal advice. 

 Medicaid

A needs-based, means-tested government healthcare assistance program administered jointly by federal and state governments.