More Changes On The Estate Planning Front

A jar of coins with the word retirement written on it.


The I.R.S. is giving widows and widowers more time to deal with complicated estates after one spouse dies.  Typically, when one spouse dies, the other one gets all or part of the estate tax-free.  The surviving spouse can also carry over the deceased’s unused estate tax exclusion if they file an estate tax return and choose what the IRS terms “portability.â€Â  Previously, a surviving spouse had only 15 months to file the return.  Under new rules, however, the window for filing was extended to two years in 2017 and then last week it was raised again to five years.  Talk to your tax accountant if you have any questions about the new rule.

Give The Gift Of A College Education To Your Grandchildren, And Do It Tax Free


When doing your estate planning, if you plan to include your grandchildren in your estate, consider giving them some of the money sooner rather than later so that they can get a good college education.  In 2021, you can give up to $15K ($30K with a spouse) to anyone, with no limit on the number of recipients or tax consequences, for either you or the person receiving the gift.  You can consolidate five years of giving into a $75K gift payable over five years, according to the IRS.  If the tuition is paid directly to the school, you can give an unlimited amount tax-free without having to file a gift tax return.  The funds can be used for tuition only, not books, supplies or room and board (Kiplinger’s Retirement Report, August 2021, P11).

Monterey, CA End Of Life Planning Must Be Addressed In This Pandemic : By Derek Baine


At Family inHome Caregiving, we always encourage our clients to have a nutritional diet, get enough exercise and do estate planning like setting up a living trust, signing a POLST and power of attorneys for both medical and financial.  However, getting exercise in this coronavirus environment is difficult and you would be surprised how many people have not set up end-of-life paperwork.  Kate De Bartolo, director of the Conversation Project, believes that end-of-life-care planning is something that more and more Americans will embrace dearly in light of the pandemic, even younger people.  Traffic and downloads of end-of-life planning material have surged this year, she noted.  One thing that has been highlighted in the pandemic has been that many people may change their mind about asking for all available life saving methods in their POLST and medical power of attorney.  Given that COVID-19 victims are isolated and can’t see their family and friends before they pass away may make living pointless under those lockdown conditions.

https://www.facebook.com/TheConversationProject/posts/end-of-life-care-planning-is-something-many-put-off-says-kate-debartolo-director/3651234638270719/

Click on the link below to find more a bout end-of-life planning from Community Hospital of the Monterey Peninsula (CHOMP) and Aspire Health Care.

https://www.aspirehealthplan.org/2020/07/29/getting-started-advance-care-planning/

Carmel, CA Estate Planning In A Coronavirus World : By Derek Baine

A jar of coins with the word retirement written on it.


AARP Bulletin in their November 2020 issue (page 22) had an interesting article about more and more couples looking at estate planning now that the coronavirus is making the future outlook uncertain.  Keep in mind that you can write a will at any time, even if you are sick in the hospital.  Most estate planners recommend setting up a living trust, which gives you a lot of flexibility on how your assets are distributed following your death.  Experts warn that doing a joint will for a couple is a terrible idea—they aren’t even legal in some states.  Leaving more to one child than another almost guarantees that the will could be challenged.  Stepchildren aren’t automatically treated as children for legal purposes.  There are a lot of moving pieces in an estate plan so consult with your attorney.

Pebble Beach, CA Estate Planning In A Coronavirus World : By Derek Baine


AARP Bulletin in their November 2020 issue (page 22) had an interesting article about more and more couples looking at estate planning now that the coronavirus is making the future outlook bleak.  Keep in mind that you can write a will at any time, even if you are sick in the hospital.  Most estate planners recommend setting up a living trust, which gives you a lot of flexibility on how your assets are distributed following your death.  Experts warn that doing a joint will for a couple is a terrible idea—they aren’t even legal in some states.  Leaving more to one child than another almost guarantees that the will could be challenged.  Stepchildren aren’t automatically treated as children for legal purposes.  There are a lot of moving pieces in an estate plan so consult with your attorney.