Instead of your spouse or partner being named as the beneficiary of your life insurance policy, you may choose to transfer the policy proceeds into a irrevocable life insurance trust account and name your partner as beneficiary of the trust. Why would you want to do that? When properly done, a life insurance trust allows you to designate what is done with the proceeds as well as what happens to the remainder of the trust funds when you pass away. Also, because the trust owns the policy, the …
Saving Money to Make Money
Many quote the adage that “you have to spend money to make money” but that’s not necessarily true. Unless you really need the items you’re thinking about purchasing, saving your money can be a great way to make money too - especially if you place extra cash in a savings account or long term investment. Avoid Credit Card Interest In today’s society, buying is easy. Goods are sold everywhere. Impulse buying has become a common phrase and is one of the major reasons for high credit card debt …
Is Your Estate Plan Valid?
Even though you have your estate plan in place, it could still face legal problems if any part is deemed invalid. What you thought was a perfectly sound estate plan could turn into a probate nightmare for your family. So, how you do make sure your estate plan will work? Hire an Estate Attorney Unless you are up-to-date on inheritance, tax and other laws that govern estate preparation, you will have to become an expert overnight to create your own plan. Writing a Last Will and Testament …
How LTC Insurance Can Help Protect Your Assets
Long term care insurance is a very important component of your financial strategy and the reasons to get an LTC policy are very compelling. The cost of assisted living or nursing home care alone should motivate you to pay the premiums. AARP notes that approximately 60% of people over age 65 will require some kind of long term care during their lifetimes.[1] Furthermore, in a 2008 annual Cost of Care Survey AARP and Genworth Financial found that: The national average annual cost of a private …
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Estate Tax 101: What is a Step-Up In Basis?
If you’re reading all the debates about the return of estate taxes, then you’ve probably run across the “step-up in basis” phrase. What is this mysterious step-up? And why do you care? Actually, the step-up is what will keep your loved ones from paying large capital gains on the increased value of your estate. Basically, the step-up rule says that assets get a new value when they pass to an heir and this new value is the one that’s used to determine if any capital gains taxes are owed when …
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