Q. My husband and I are concerned about how to keep our trust up to date in light of changing tax law and changing family circumstances. What if we are too ill to make changes ourselves. Any thoughts on how we can handle these concerns? A. With the ever-changing tax landscape, and changes over time… Read More »
Posts Categorized: Tax Matters
Does Your Trust Need a Tuneup?
Q. My wife and I had our Living Trust prepared back in the year 2008. I hear there have been changes in tax law since then which might affect us. Is it time to have our trust reviewed? A. You refer to the Tax Cuts and Jobs Act,” (“TCJA”) signed by former President Trump on… Read More »
The Tax Consequences of Selling a Home After the Death of a Spouse
Q. My husband died last year, and I am now considering selling our home and relocating to be closer to our daughter. I am concerned, however, about the potential tax consequences when I sell. Can you provide any information on this point? A. Yes. The biggest concern when selling property is capital gains taxes. A capital… Read More »
Should We Sell Mom’s Home To Pay For Her Care?
Q. Our mother is in assisted living and may need to go into a nursing home soon. To raise money for her ongoing care, we are thinking of selling her home which is now vacant. Any thoughts as to whether that makes sense? A. Well, here’s the thing: selling mom’s home may undermine her ability… Read More »
Review Your Older Trust Now To Avoid A Tax Surprise Later
Q. 20 years ago, my husband and I created a Living Trust with provisions to avoid estate tax upon our passing. I believe it is called an A-B Trust. When my husband died four years later, my attorney helped me divide the trust assets between the A and the B portions. The problem: my CPA… Read More »
A Resolution For The New Year
Q. My wife and I created our estate planning documents about 15 years ago and we really have not even looked at them since. Do you have any thoughts about when we should consider updating them? B. Yes, I do. I would tie a review and update into a New Year’s Resolution. Many of us… Read More »
Consider Tax Savvy Year End Gifts To Family
Q. My wife and I are considering making large gifts to our two children and three grandchildren, and we would like to do so in a way that is “tax wise”. Do you have any advice for us? A. Yes. Many people mistakenly believe that one cannot gift more than $15,000 per year/person without incurring a… Read More »
Preserving Your Parent’s Low Property Tax on Trust Distribution After Prop. 19
Q. My mom owned her home for 25 years before she recently passed. Her trust leaves it 50-50 to my brother and me. I would like to keep the home by purchasing my brother’s interest for cash, and he is okay with that. Is there a way that we can do this without triggering a… Read More »
How the $1.9 Trillion ‘American Rescue Plan Act’ Will Help Seniors
Q, I know that Congress and President Biden recently approved a new law that adds significant money into improving vaccinations and other COVID-19 outreach, but I wonder what other provisions are in the new law that might help seniors. A. Good question. The AMERICAN RESCUE PLAN ACT of 2021 (“ARPA”), R. 1319, was narrowly passed… Read More »
Key Elder Law Numbers for 2021
To Our Clients and Friends: Below are updated numbers for 2021 that are frequently used in our Elder Law practice and which may be of interest to clients: Medi-Cal Spousal Impoverishment Numbers for 2021 The new Community Spouse Resource Allowance (“CSRA”) is $130,380. The Minimum Monthly Maintenance Needs Allowance (“MMMNA”) for the “At- Home” Spouse… Read More »