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The COVID-19 Economy Has Created Opportunities for Estate Wealth Transfers

May 25, 2020/in Estate Planning/by KT Williams

The COVID-19 public health crisis has led to a near complete economic shutdown. Stay at home orders, closures of non-essential businesses, and other measures taken to stop the spread of the Coronavirus have smothered the prosperous pre-COVID economy. While nobody would consider an economic downturn a good thing, from an estate planning perspective the current market conditions offer unique benefits for transferring estate assets to family members and trusts. 

Let us explain further. Many tangible property items and paper investment assets are undervalued in terms of where they were prior to COVID-19 and where they are likely to go after the economy reopens. That means transferring depressed assets to loved ones and future heirs could allow you to reduce the value of your estate and your beneficiaries would be able to keep most of the upside appreciation when the stock market and broader economy regain lost value. 

This is just one benefit of the Coronavirus economy. Another is the all-time low applicable federal rates, or AFR. Every month the Internal Revenue Service publishes new AFRs based on a number of economic factors, including prior 30-day average market yields of U.S. treasury obligations. The rates apply to loans between private parties, like family members. At record lows, loaning, or transferring, depressed assets to family members is incredibly cheap. It also allows the borrower to keep any future gains free of gift and estate taxes if he or she invests the loan and the investment appreciates in value.

Something else to keep in mind is that when you transfer estate assets their value is essentially frozen for estate and gift tax purposes. Thus, the lower the asset value the lower the corresponding tax liability. Additionally, transferring depressed assets could allow you to fit more into the annual federal gift tax exclusion. The government allows you to give away up to $15,000 a year without it counting toward a lifetime exemption, so cramming in depressed assets allows for greater asset transfers and future upside growth.

Well-timed wealth transfers are an effective way to achieve long-term estate planning goals. They are also complicated, however, and involve nuances specific to individual estate circumstances. For information and to ask your own questions, we encourage you to contact our office to schedule a meeting.

https://ktwilliamslaw.com/wp-content/uploads/2020/05/P42.Williams.BlogMay2.png 450 800 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2020-05-25 14:19:382020-05-27 14:23:04The COVID-19 Economy Has Created Opportunities for Estate Wealth Transfers

Long-Term Planning Resources for Family Caregivers During National Elder Law Month

May 22, 2020/in Caregivers/by KT Williams

Did you know the month of May is designated Older Americans Month and National Elder Law Month? Both annual events are designed to honor and support seniors. In doing so, however, millions of family caregivers are also recognized as an essential part of senior care. As such, support resources offered by advocacy groups and the elder law community often involve adult children of aging Americans and other family members.

Elder law attorneys represent, counsel, and assist seniors and their families on a variety of legal issues, such as estate planning, health care, retirement planning, special needs assistance and elder abuse. In fact, one of the most important areas for seniors and their family caregivers to consider this year is long-term care planning.

We know long-term care can be incredibly expensive and have a profound impact on families. Of course, a balance between cost, safety, and well-being is ideal. Know that it is never too soon to begin planning, as even the most dedicated family caregivers will likely need to allow for a long-term care transition once a senior loved one’s needs surpass their capabilities. 

We always want you to have as many resources as possible to help you and your senior loved ones. Let us share a list of long-term care planning resources to consider this National Elder Law Month and any time throughout the year.

1. LongTermCare.gov. This site is maintained by the U.S. Administration for Community Living, and it serves as an online clearinghouse for information and tools to plan for a senior loved one’s long-term care needs.

2. National Center for Assisted Living. As part of the American Health Care Association, NCAL offers consumer resources for assisted living facilities and related programs in different states.

3. Nursing Home Compare. Nursing Home Compare provides a searchable database with information on every Medicare and Medicaid certified nursing home in the country.

4. Community Resource Finder. The Community Resource Finder is a project of the AARP and the Alzheimer’s Association that provides easy access to Alzheimer’s and dementia resources and associated long-term care options throughout the country.

5. National Academy of Elder Law Attorneys. NAELA is a nonprofit association of lawyers and organizations that provide legal services for older adults and their families, including seniors with special needs. NAELA has also helped establish National Elder Law Month.

Long-term care is a critical aspect of senior care and elder law attorneys are uniquely equipped to help seniors and their families plan for it. They are also able to address transitioning from family care to outside care facilities as well as any problems that may arise while a senior loved one is in the care of others. For guidance, we encourage you to contact us now, and any time through the year.

https://ktwilliamslaw.com/wp-content/uploads/2020/05/P42.Williams.MayBlog-2.png 450 800 KT Williams https://ktwilliamslaw.com/wp-content/uploads/2015/12/williams-law-logo-rgb-640px.png KT Williams2020-05-22 14:07:062020-10-26 12:10:03Long-Term Planning Resources for Family Caregivers During National Elder Law Month

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