Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Monday, April 7, 2014

3 Nontax Items You Need to Review

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Tax time is also an effective time for an annual financial checkup.  Here are three essential nontax items retirees should be reviewing at tax time:

  1. Core Holdings.  These investments are your survival insurance, assets you never plan to sell unless it really hits the fan.  They should make up about 10% of your net worth and include precious metals, farmland, or other investments that historically hold their value against inflation.
  2. Long-term care coverage.  Whether it’s nursing home insurance, self-insurance, or something else, you need to have a way to pay for the likelihood of needing long-term care.  And if you think you will be able to rely on Medicaid as your backup plan, consult an elder-law attorney to be certain.
  3. Estate Plan.  Make your intentions clear in an up-to-date and properly executed will.  And make sure people know where to find it.  Consider a pour-over will to save your family from the headaches of probate.  And consider a Grantor Retained Annuity Trust or a Crummey trust if you’re worried about the estate tax.

See Dennis Miller, 3 Essential Nontax Items to Review at Tax Time, Market Watch, Apr. 2, 2014.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/04/3-nontax-items-you-need-to-review-.html

Disability Planning - Health Care, Disability Planning - Property Management, Elder Law, Estate Tax, Non-Probate Assets, Trusts, Wills | Permalink

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