If you’re putting an estate plan in place, you’ll usually hear two common approaches: a will-based estate plan, or a revocable trust-based estate plan (often called a revocable living trust plan).
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Navigating the Complexities of Estate Planning: Understanding IRS Rev. Rul. 2023-02 and Its Impact on Step Up in Basis
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In the constantly changing area of estate planning and taxation, understanding the implications of new tax rules is crucial for both estate planners and beneficiaries. The Internal Revenue Service (IRS) Revenue Ruling 2023-02, issued on March 29, 2023, brought significant changes to the treatment of assets held in irrevocable grantor trusts, particularly affecting the step up in basis provision. We will explore the nuances of this ruling, its impact on estate and capital gains taxes, and considerations for estate planning strategies, especially in light of current estate tax exemption amounts.
For a quick rule of thumb, if an asset is counted in a person’s estate, and subject to estate taxes, it would qualify for a step up in basis, though there are limited exceptions to this. Even if an asset is subject to estate taxation, the tax may be zero if the value is below the estate tax exemption.
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Retirees 65 and Older Face New Financial Cliff for Long Term Services and Supports.
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Long Term Services and Supports
Long Term Services and Supports (LTSS) are services which a person would need to perform activities of daily living (ADL) such as bathing, dressing, grooming, or eating. Retirees, specifically, will need LTSS due to age, physical, cognitive, developmental, or chronic health conditions that limit their ability to care for themselves. LTSS can be provided institutionally in nursing homes or through home and community-based services (HCBS).
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Medicaid Update: New Jersey’s 2024 Updated Income and Resource Standards Are Here. Find Out What’s New and How It Affects You?
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New Jersey’s 2024 Income and Resource Standards for Medicaid Only and 2024 Rates for Home and Community Based Services were announced on December 26, 2023. Effective January 1, 2024 the new amounts will take effect. While the changes do not amount to much, the changes are still significant and relevant to Medicaid recipients, applicants, and their spouses. It is important to know these figures if you are in need of Medicaid or you are researching Medicaid Planning.
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Understanding the Five-Year Look-Back Period for Medicaid in New Jersey and 7 Proven Strategies for Planning
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When applying for Medicaid, the look-back period is often the most complex part of the process. There are plenty of misconceptions and a great deal of confusion about Medicaid’s five-year look-back period, especially when it comes to long-term care in New Jersey.
This article aims to explain this complex topic to those who are navigating these waters either for themselves or their loved ones. We must caution though that Medicaid planning is not a do-it-yourself process.
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4 Small Steps to Help Start an Effective Estate Plan for Your Parents
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Importance of an Estate Plan
Estate planning isn’t only planning for what happens with our things after we die, but it is also about planning what to do with our things if we can’t tell anyone while we are alive. Having this talk with a loved one, parents in particular, can be difficult and confrontational, but it shouldn’t be. So how should this conversation be started and what can you do to get the process started? I’ll give you some ideas that can build on themselves and hopefully get your loved ones a full estate plan in place. Please keep in mind small steps over time can be very helpful, but trying to get this done in one day can be overwhelming.
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New York’s Big Medicaid Change For Community-Based Long-Term Care Services: 30 Month Look Back Coming Soon.
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New York proposed to amend its Medicaid section 1115 demonstration, also known as the New York Medicaid Redesign Team (MRFFCRAT) waiver.
The amendment seeks to implement a 30-month transfer of assets lookback period for coverage of community-based long-term care (CBLTC) services, and approval to exclude certain enrollees from these rules. This is similar to the current 60 month look back period for institutional based (nursing home and assisted living) Medicaid benefits. Currently, New York does not consider assets transferred in determining eligibility for community based long-term care services.
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Understanding 12 Advance Directive and Healthcare Proxy Rules in New Jersey
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What Is A Healthcare Proxy and Advance Directive?
In the state of New Jersey, individuals have the right to make decisions about their healthcare through an advance directive and a healthcare proxy. These legal documents allow individuals to specify their medical preferences, ensuring their wishes are respected, even if they become unable to communicate or make decisions.
Here we will go through some of the key provisions of New Jersey’s regulations governing advance directives and healthcare proxies. We hope this can help you and your loved ones understand and plan for the future. If you have any questions, please contact us.
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Navigating the SECURE Act and SECURE 2.0: Changes to Inherited IRA Rules and Guidance
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Introduction to The Acts
Retirement planning underwent significant changes with the introduction of the Secure Act in 2020 and its subsequent enhancement, Secure 2.0, in 2023. These legislative updates brought about profound adjustments, especially concerning the rules governing inherited individual retirement accounts (IRAs). We will explore the reverberations of the secure act, highlighting key modifications, and delve into the additional guidance provided by the Secure 2.0 act.
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