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Recent Blog Posts
Recent Changes for Estate Tax Returns Announced
A recent statute passed by Congress and signed by the President, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, contains a provision concerning estates which are required to file estate tax returns and imposes new reporting requirements. The law went into effect on July 1 and it only applies to estate tax returns due on or after July 31.
According to the new law, the estate tax return must report, separately, to the IRS, and to each individual beneficiary of the estate, the estate tax value of any property the beneficiary is to receive. These statements must be provided to the IRS and any estate beneficiaries within 30 days of the estate tax return due date. For example, if an estate has a return due on December 1, the reporting must be provided by December 31.
The responsibility for this reporting falls to the executor of the estate. Information which should be provided in the statement includes the value of each property which is being reported, as well as any other information the IRS may require because of the new law.
Granny Scammers Utilizing Social Media to Prey on Seniors
Scammers who prey on senior citizens have been around for a very long time. Estimates indicate that each year, almost $3 billion are handed over to these con artists by unsuspecting seniors.
Some of the more common scams include Medicare fraud, counterfeit drug scams, telemarketing scams, sweepstakes scams, and investment fraud. Additionally, what all of these schemes have in common is tricking the elderly into handing over money—often substantial amounts.
There is a new ploy that has seen an alarming increase lately, referred to as the "Granny scam." These scammers use an elderly person's social media accounts to obtain personal information and use it to con the person out of money.
The person committing the con pours over social media sites, with Facebook being the most common. Important personal information is discovered on these accounts, such as family members names, nicknames, travel plans, place of employment, etc. Once a con artist is armed with that information, he or she will contact the elderly victim and, pretending to be the family member, claim to be in some sort of financial trouble and need money right away.
Estate Planning for Victims of Alzheimer's Disease
According to the Alzheimer's Association, Alzheimer's disease is number six cause of death in this country. However, in the list of the top 10 causes of death, Alzheimer's disease is the only cause which shows no signs of being prevented or cured. The disease's progression cannot even be slowed.
In order to bring awareness to this disease, November has been designated as National Alzheimer's Disease Awareness Month. There are currently 5.3 million Americans who have been diagnosed with the disease, and those numbers continue to increase. Projections are that in 10 years, the number of people who are 65 years or older will spike by 40 percent—to 7.1 million.
For those who have been diagnosed with Alzheimer's Disease, what type of estate planning should be in place?
Study: Are Investors Really Aware of Signs of Fraud?
When it comes to investing your money, do you know what warnings to watch for that could be indicators of fraudulent activity? A recent study reveals that many seasoned investors may not be aware of the signs that could spell financial loss—possibly even disaster—for an unsuspecting investor.
The study, titled "Understanding Investor Perceptions of Financial Statement Fraud and Their Use of Red Flags: Evidence from the Field," was conducted by researchers from George Mason University, North Carolina State University, the University of Cincinnati, and the University of Virginia. A grant for the study was provided by Financial Industry Regulatory Authority (FINRA) Investor Education Foundation.
Surveys were given to 194 participants from 38 different states across the country. The gender of participants was split evenly between men and women, with the average age of between 40 and 49 years old. The average household income of study participants was between $60,000 and $90,000.
Will You Really be Financially Ready for Retirement?
Many people formulate plans for their senior years—they set up retirement and other investment accounts, and they draw up wills and other legal documents to help ensure that their senior years are indeed the golden years.
However, as people make these plans decades before the plans will actually be enacted, it is worthwhile to question whether or not they realize just how much they will need when those golden years arrive.
According to statistics from the Employee Benefit Research Institute, most people will see an approximately 20 percent decrease in household expenses between the ages of 65 and 75 years old, and an even larger decrease (35 percent) by the time a person hits 85 years of age. Still, there are major household expenses that remain no matter what the age a person is and those are the ones people have to plan for when they will no longer be earning a weekly pay.
More Seniors Opting to Rent Instead of Own
Owning a home is a goal that many individuals grow up with and consider as the "American dream." A home offers a place for families to raise their children. Later in life, a home provides a place for families to enjoy their golden years.
However, what is often not included in the description of the American dream is the cost and work that is required to maintain a home.
Over the past several years, more and more retirees are opting to sell their homes and are choosing to rent. In fact, statistics show that over the past 15 years, the number of retirees who own homes has dropped from approximately 85 percent to 75 percent. Additionally, projections show that over the next 10 years, more than 2 million seniors will make the decision to sell their home and rent.
One common reason for choosing to rent is the spikes and drops of the real estate market. Currently, the market is at a high, which means that it is a good time for sellers. Historically, when that high market reaches a certain point, it eventually comes crashing down and turns the real estate tables into a buyer's market. With that in mind, many seniors will make the decision to sell in order get the most money for their property. These funds can then be invested in such a way to boost a senior's monthly income.
Filing for Conservatorship in Illinois
In some situations, it is necessary for a conservator to be appointed to oversee a person's affairs. Many people refer to a conservator as an adult guardian. A conservator can be appointed to make decisions regarding a person's financial affairs (referred to as a conservator of the estate) or to make personal decisions for the incapacitated person (referred to as a conservator of the person). In many cases, one person can be appointed for both duties.
Sometimes, the person who needs the assistance of a conservator is able to make the decision as to who is appointed. However, it is often the case that the person is too incapacitated to do so. In these situations, there is a preferred legal order that the court considers when making the appointment. It is usually preferred that the spouse or domestic partner be appointed conservator. Other people who may be considered, in preferable order, include an adult child, a parent, and a sibling. If no one from the family is qualified, available, or willing, then there are professional conservators who are available for a fee, which is paid from the estate.
Wealth or Legacy: What Tops Boomers Inheritance List?
When most people think of leaving a legacy for their children, the legacy usually revolves around finances. Many of us want to make sure our loved ones are taken care of when we are no longer here to do so ourselves. Therefore, we need to take the appropriate estate planning steps to ensure that there is enough money, property, and other assets to accomplish these desires. However, a study, which was conducted by Allianz Life Insurance Company of North America, reveals that those in older generations appreciate the value of personal legacies as well.
The American Legacies Pulse Study surveyed both baby boomers (those who are between the ages of 47 through 66) and elders (those who are age 72 years or older). The company had conducted a similar survey seven years prior to this one.
An overwhelming 86 percent of boomers who were surveyed said that family stories— those passed down from generation to generation—were the most important legacy one can leave behind. For elders, 74 percent agreed that family stories were the most important legacy.
Estate Planning: Blended and Traditional Families and Same-Sex Couples
A recent survey compiled by UBS highlights the differences in the American family structure of today compared to past generations, and how those differences may affect a family's estate planning.
According to the survey, 34 percent of all high-net-worth investors live in modern families and 35 percent live in traditional families. However, nearly two-thirds of those who participated in the survey felt that financial advice is targeted to only traditional families.
The survey classified a modern family as one consisting of same-sex couples, one in which children were living in the home from prior relationships, or a home with parents and adult children living together.
There were 2,715 high-net-worth and affluent investors who participated in the survey. Of those who participated, 1,787 had a minimum of $1 million in investable assets, with slightly more than 400 members of that group having at least $5 million in investable assets.
Newlywed Estate Planning Checklist
One of the last factors that most newlyweds consider—yet perhaps one of the most important—is making estate planning arrangements. This is especially true for younger married couples.
There are steps a newly married couple should take to ensure that if one spouse is affected by a tragedy, the other spouse will be cared for.
Newlywed Estate Planning Tips
First, a couple should contact their employers' Human Resources departments. There are often benefits and/or retirement accounts which will need to be updated with new beneficiary information. For example, one spouse may have had one or both of his or her parents as the beneficiary of an employment life insurance policy. If the beneficiary information is not changed and something happens to that spouse, the surviving spouse would not receive any of that life insurance policy's payout—the funds would go to the parents of the spouse.
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