Category: Estate Planning

Madison Eubanks

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Jul 26, 2024

Traditional estate planning advice revolves around moving as many assets as possible out of the estate to minimize estate tax liability. However, most people’s estates will never approach taxability, meaning they need a different approach to estate planning.  At the most foundational level, planning for non-taxable estates—those valued at less than $13.61 million—means ensuring clients have appropriate documents like wills, trusts, and powers of attorney in place.  However, just because a client isn’t subject to federal estate tax doesn’t mean they can ignore tax planning. In this blog, we’ll look at tax planning strategies for non-taxable estates where the owner...

Madison Eubanks

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Jul 26, 2024

Whether or not you’re a financial planning professional, being on top of trends and facts about estate planning can help you make informed decisions with regards to finances.  In this article, we’ve rounded up 50 estate planning statistics from 2024 from Vanilla research and sources around the web that you’ll want to remember.  Why estate planning matters  Why is estate planning important, and why does it seem like more people are talking about it now?  Not having a plan can cause problems down the road Over a third (35%) of US adults say they or someone they know have experienced...

Madison Eubanks

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Jul 15, 2024

For families planning for individuals with disabilities or special needs, special considerations have to be made to ensure the person is cared for long-term. In some cases, specialized planning tools like qualified disability trusts can be used to achieve certain benefits like tax exemptions or federal aid eligibility.  At the most basic level, a qualified disability trust (also known as a QDisT or QDT) is a trust that qualifies for a federal tax exemption. It’s a financial planning tool that an individual with special needs or disabilities’ family or caregivers may use to provide for their needs.  Here, we’ll walk...

Simona Ondrejkova, CFP

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Jul 08, 2024

Clients who own a business often face an additional layer of complexity when it comes to estate planning. From determining the most effective strategy for passing on the business to minimizing taxes and maximizing wealth transfer for loved ones, navigating through countless estate planning strategies can be exhausting. The good news is that there are certain business structures, such as the family limited liability company (family LLC), that could make things easier for those who run a business that’s meant to stay in the family.  Here, we explain what a family limited liability company is, how it can help business...

Madison Eubanks

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Jun 05, 2024

For wealth management firms that want to offer their clients complete, holistic financial advice, estate planning services are an absolute must. The snag is that most firms have far more advisors than planners, and resources don’t allow central planning teams to work closely with every single client.  Because estate planning is an important part of the client experience, planners need to find ways to scale the practice to the advisor level. This doesn’t mean advisors need to become the final authority on all things related to estate planning, but rather that they need to know enough to open the door...

Simona Ondrejkova, CFP

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May 29, 2024

If you have clients who own a business, it’s important to be familiar with the buy-sell agreement. This type of contract can act as both a business succession tool and an estate planning tool.  Putting a buy-sell agreement in place can avoid potential threats to the continuation of the business that your clients have worked so hard to build or help avoid liquidity issues to ensure their loved ones are taken care of.  If a partner in a business dies or exits the business because of a disability or other reasons, a buy-sell agreement provides the method for transferring that...

Madison Eubanks

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May 22, 2024

Typically, we think of an estate plan as an arrangement to maximize wealth transfer and minimize taxes after a person passes away. However, there are some elements of estate planning that can take effect while a person is still living—like a Medicaid trust.  In this article, you’ll learn what trusts and Medicaid have to do with one another, the advantages and disadvantages of Medicaid trusts, as well as when it may be appropriate for your clients to set one up.  What is a Medicaid asset protection trust (MAPT)?  [embed]https://justvanilla.wistia.com/medias/prx1k9xyba[/embed] A Medicaid asset protection trust—also known as a Medicaid trust or...

Madison Eubanks

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May 14, 2024

There are many different types of trusts that can be used in estate planning to achieve a range of various purposes and goals. One common element among all trusts is the appointment of a trustee to manage its assets.  What exactly does a trustee do? This article will cover everything you need to know about trustee responsibilities, how a trustee should be chosen, and more. What is a trustee?  A trustee is a person or entity that holds and administers a trust’s assets or properties for the trust’s beneficiaries. In general, a trustee is tasked with managing a trust’s assets,...

Madison Eubanks

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May 08, 2024

As many people age, it’s common for their retirement plan to represent the largest portion of their assets. In estate planning, retirement accounts like 401(k)s and IRAs often require special attention because there are unique rules about how they can be transferred to beneficiaries.  In some cases, a retirement trust can be a helpful solution. Here, we’ll explore what a retirement trust is, the advantages and disadvantages of using one, how to set up a retirement trust account, and more.  What is a retirement trust?  A retirement trust is an estate planning strategy in which a trust is named as...