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Articles tagged with: Estate Planning

How to Handle Debts in an Estate

Your Guide to Understanding How Estate Assets are Used to Pay Valid Claims

23 November 2020

How to Handle Debts in an Estate

The passing of a family member is always a painful time. Sometimes, however, the pain can be compounded by financial stress. This is especially true if your loved one died with outstanding debts that must now be paid. A complex process exists for handling debts of a decedent in estates, and it requires careful planning that we’ll discuss below.

5 Money Moves Single Parents Should Make

Work toward these financial markers to build a strong foundation for you and your family.

11 November 2020

5 Money Moves Single Parents Should Make

In a two-parent household, raising children can be quite the task. Raising children as a single parent brings additional challenges, stressors, and responsibilities - many of which are financial.

Though financially stressful, it’s important to remember that it’s possible to raise a child on your own and have a stable financial life. It merely requires discipline and planning. So, if you’re a single parent and feeling a bit overwhelmed, use these steps as a guide to help you achieve financial security.

Five Things to Do If You Inherit a Roth IRA

These steps will help you make the most of the bittersweet situation you are in.

17 October 2020

Five Things to Do If You Inherit a Roth IRA

Once upon a time, if you inherited a Roth IRA, you would be able to stretch the inherited Roth IRA withdrawals out over your lifetime, letting the money grow over the years. Now though, the rules have changed. With the SECURE Act, which was signed into law in December of 2019, planning for an inherited IRA requires a little bit more effort and intention.

This is because the act imposes a new rule on inherited IRAs for any account whose owner died after December 31, 2019, requiring that beneficiaries must empty the account within 10 years of the owner’s death (unless they qualify for an exception).

While this new law definitely limits what you can do with an inherited IRA, there is still some flexibility in how you reap the benefits as long as you stay in the 10-year time limit. Here are five tips to guide you as you plan your strategy.

 

The Heirless Estate: What to Do and When to Do It

Estate Planning Guidance for Those Without Heirs

12 August 2020

The Heirless Estate: What to Do and When to Do It

Estate planning is all about the disposition of your assets and, for many people, this involves determining how to divide assets among heirs. What happens, though, when you don’t have a spouse or children, or other obvious heirs to your estate? Unfortunately, many people in this situation don’t feel it’s necessary to plan where their assets will go, which makes it more likely that their money will end up somewhere they wouldn’t choose – namely, the state. For this reason, it’s always prudent to have a strategy in place and to plan ahead for various outcomes.

The SECURE Act: How It Could Affect Your Retirement and Estate Plans

This legislative overhaul brought about numerous changes that are likely to impact your finances.

11 March 2020

The SECURE Act: How It Could Affect Your Retirement and Estate Plans

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law on December 20, 2019, and it took effect on January 1, 2020. Overall, the legislation is intended to strengthen retirement security nationwide, but it also contains multiple changes that impact retirement and estate planning. Let’s dig into a few of the most significant provisions.

No Age Cut-Off for IRA Contributions

In the past, you were prohibited from contributing to a traditional IRA in the year you reached age 70 ½, even if you were still employed. The SECURE Act eliminates this rule so that anyone, regardless of age, can make IRA contributions as long as they have earned income to contribute. With this change, traditional IRA rules now mirror the contribution rules for Roth IRAs and 401(k) plans.

This longer contribution period takes effect for the 2020 tax year. Although 2019 contributions can be made up until April 15, 2020, these contributions must still follow the past rules, meaning only individuals under the age of 70 ½ can contribute for tax year 2019.

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