Poder notarial – un documento importante que cada adulto debe firmar
¿Qué es? Un poder notarial es un documento que da a otra persona ( su agente ) la autoridad para tomar decisiones legales y transacciones en su nombre. ¿Por qué es necesario? Si una persona pierde la capacidad de actuar en su propio nombre, a continuación, el agente puede actuar en su nombre ....
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3 reasons why you might NOT want to plan for Medicaid
You probably see a lot of advertisements trying to convince you to plan for Medicaid in order to obtain long term care coverage. Long term care is home care (for people who live in their homes but need help with daily activities) and nursing home care. I, on the contrary, will show you that if you are...
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Common retirement assumptions people make that could result in an unexpected shortfall.
Making incorrect or overly optimistic assumptions about your retirement portfolio and plans can lead to disastrous results. Some of the most common retirement assumptions that may not turn out to be true are: Assuming that stock market returns will always be high. Investing in the market at...
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Difference between Social Security, Social Security Disability and Supplemental Security Income
There are many acronyms in government benefits. This article explains the difference between most common Social Security benefits. Social Security benefits are based on the individual’s earnings, averaged over the worker’s life. Eligibility: To be eligible, an individual must have a minimum of 40 quarters of reported earned income. To receive full...
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What gifts can you make without informing the IRS? Why would you want to give large gifts during your lifetime?
Every person has a lifetime gift and estate tax exemption of $5.43MM (this number rises with inflation). Generally, most gifts made during a lifetime are counted towards this lifetime exemption. If lifetime gifs exceed $5.43MM, a gift tax is due. If the sum of lifetime gifts and the money remaining in the estate exceeds...
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Social Security “Spousal Benefits” – the money you never knew you had!
Spousal benefits are available to spouses, divorced spouses and widows / widowers. Married individuals can choose which Social Security benefit they will receive – their own or a percentage of their spouse’s, whichever is greater. The benefit of receiving the ‘spousal benefit’ is to delay the collecting spouse’s retirement age, and as a result,...
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Trusts will be the only solution if the “Step Up” in basis is eliminated
Earlier I wrote a post about what is the step up that President Obama wants to eliminate. Currently, the step up in basis is the favorable tax treatment that heirs get if the assets were held until death by the parent. If the mother buys stock at $20 a share, holds on to...
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Differences between Medicare and Medicaid
The cost of nursing home care or 24 hour home care averages over $140,000 per year in New York City. At this rate, only the very wealthy can pay indefinitely for this care, without depleting their lifetime savings. Since most people do not have private long term care insurance to pay for this cost, seniors...
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Top Ten Reasons Why You Might Want a Trust
The federal estate tax threshold for an individual is currently $5.43MM (and double that for most married couples). The New York State estate tax threshold is currently $2.06MM (and set to rise to the federal level by 2019). That all means that for the vast majority of New York residents, estate taxes are no...
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Asset Protection: Self-Settled Trusts vs. New York Based Trusts
The goal of asset protection planning is to insulate assets from claims of creditors without concealment or tax evasion. Many people get sued. Some are in professions that almost seem to invite litigation (doctors, lawyers, business owners, home owners). Others simply get unlucky (i.e. car accident). If one is already getting sued, then it’s...
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