Understanding the process of Medicaid eligibility and the look-back period is crucial, especially when planning your estate. One of the most essential aspects of Medicaid planning involves what's known as the "look-back" period. For the residents of Texas, this look-back period extends five years. What is the Five-Year Look-Back Period? The five-year look-back period is when Medicaid checks an applicant's financial transactions for any evidence of asset transfers below fair market value. … [Read more...] about Understanding the Medicaid Five-Year Look-Back Period
Your Ex-spouse May Get Most of Your Assets
Nowadays, divorce is a common occurrence. In 2020, the National Center for Health Statistics reported 2.1 divorces per 1,000 in Texas. If you have gone through a divorce and remarried, it is crucial to update your estate planning documents to reflect your changed circumstances. Failure to do so can lead to a nightmare scenario for your family in case of an unexpected accident or illness. For example, suppose you become incapacitated, and your ex-spouse is listed as your agent under … [Read more...] about Your Ex-spouse May Get Most of Your Assets
What You Need to Know About SECURE Act 2.0
IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly. Just when advisors began to get comfortable with the new 10-year rule, the United States Treasury Department promulgated proposed Treasury Regulations early in 2022 adding additional complexity to that rule by requiring annual distributions for a non-EDB of a participant who died after their Required Beginning Date. Once again, the SECURE Act includes additional provisions … [Read more...] about What You Need to Know About SECURE Act 2.0
How Do Millionaires Do It?
There are now 13.61 million American households with assets over $1 million, excluding their homes and retirement funds. Dr. Larry Samuel of the consulting group Culture Planning breaks them down into five basic groups: Thrillionaires. These millionaires live on the edge, consuming conspicuously. They’re more likely to be found rolling the dice in Las Vegas than taking a family vacation. While they’re not impulsive, they take calculated risks. Think: … [Read more...] about How Do Millionaires Do It?
Just When You Thought You Understood the 10-Year Rule, Think Again
IRAs have become ubiquitous components of estate plans. The SECURE Act of 2019 altered the landscape for IRAs significantly by eliminating the stretch benefit for most designated beneficiaries and forcing all designated beneficiaries other than Eligible Designated Beneficiaries to use the 10-year rule for distributions. The 10-year rule was thought to operate much like the 5-year rule that existed before the passage of the SECURE Act. Recently issued proposed Treasury Regulations dispute that … [Read more...] about Just When You Thought You Understood the 10-Year Rule, Think Again
Application of the Updated Life Expectancy Tables
Since the creation of Individual Retirement Accounts in 1971, they have become an increasingly important part of a well-balanced Estate Plan. Taxpayers contribute to the IRA. Upon attaining a certain age, the taxpayer begins taking distributions based upon tables promulgated by the Internal Revenue Service. The Internal Revenue Service recently updated those tables which will significantly impact certain taxpayers. Read on to learn more. … [Read more...] about Application of the Updated Life Expectancy Tables
A Trust Can Help Protect You from a Financial Crisis
Compliments of the McGee Law Firm, Attorney Brandon McGee Recently, there has been tremendous turmoil in financial markets and financial institutions. This leads many to ask whether their accounts are safe. Now, more than ever, it is important to protect yourself and your loved ones from the uncertainties in the world. You can start with your financial institution assets. There are several different systems of protection in place, depending on the type of asset and institution. Here is … [Read more...] about A Trust Can Help Protect You from a Financial Crisis
Your Team is on Your Side
Compliments of the McGee Law Firm, Attorney Brandon McGee Estate Planning is like a team sport. In these turbulent economic times, sometimes it may seem like you are going it all alone. However, you’ll find that bringing together a team of qualified professionals will bring you peace of mind as you work towards your goals. Before doing anything else, you must first select the members of your team to help you achieve your goals. This team consists of the following professionals, depending … [Read more...] about Your Team is on Your Side
Preserving Your Independence
Compliments of the McGee Law Firm, Attorney Brandon McGee As we get older, it often seems that time accelerates. It seems the children were in diapers just yesterday. But, now they’ve left home and they have kids of their own. Where does the time go? Aging is a normal part of life. The infant becomes a toddler. Later the teenager becomes an adult (thankfully). Unfortunately, as we age later in life, we are no longer as able-bodied as when we were teenagers. Gradually, we all get … [Read more...] about Preserving Your Independence
Retirement Planning Questions to Answer
Halfway through the year, it’s critical that you review your current financial situation and goals. A big part of this is a detailed review of your retirement planning to date. Even if you think everything is going as planned in regards to your retirement planning, you’ll never know for sure until you review your approach and determine if you need to make any adjustments. It’s critical to answer a variety of questions such as: Are you on track to save as much money as you need by your … [Read more...] about Retirement Planning Questions to Answer
