10March
2020
Would a Revocable Trust Be Beneficial for You?

When developing an estate plan, a revocable trust can provide many benefits that, in most cases, significantly outweigh the cost of setting one up. Here are three of the benefits of setting up a revocable trust. Trust Basics A trust is an written arrangement under which one person, called a trustee, holds legal title to property for a beneficiary. You can be the trustee of your own living trust and keep total control over the assets in the trust. Trusts generally fall within two categories: 1. Living trusts created during the lifetime of individuals. Living trusts, also know as “inter…

10March
2020
How to Pay Retiree Health Costs Tax-Free

If you own a small business, you may have set up a defined benefit pension plan for you and your employees that will provide a specific amount of retirement income based on salary history and years of service. For 2020, the maximum annual benefit of a defined pension plan is $230,000 (up from $225,000 in 2019). In future years, it will be subject to cost-of-living adjustments. Main Requirements To qualify for tax-free treatment, a 401(h) plan: Cannot favor officers, shareholders, managers or highly compensated employees in coverage, contributions and benefits. Must specify the medical benefits that will be available and…

10March
2020
Test Your Estate Strategy Knowledge

Creating an estate strategy is all about helping ensure that your final wishes are carried out in the event of your death and your assets are transferred to your heirs with managing taxes in mind. How well do you know the fundamentals of estate management? Take our short quiz and see. 1. Probate is defined as: a.The legal document that must accompany any will b. A court-supervised estate administration process c.The assets that a lawyer manages d.The untaxed portion of an estate 2. The difference between the probate estate and the gross estate is: a.There is no difference b.The probate…