Cary Estate Planning

Why Cary Estate Planning? Well, here's a little bit "About Us"... Special thanks to Eric Krehbiel with Reel Worx Video for the excellent work on this project! #HonestPlanning #EstatePlanningLawyer #YourPeaceOfMind  #OurPassion #CaryEstatePlanning #ReelWorksVideo

💸 What's the key to protecting cryptocurrency assets? Your answer is a well-crafted estate planning strategy.   In today's rapidly changing digital landscape, high-net-worth investors must navigate the complexities of protecting their cryptocurrency assets from estate taxes and potential legal challenges. The regulatory framework surrounding digital assets remains uncertain, which can create complications in estate planning and asset transfer.   To mitigate tax liabilities, consider these strategies:   1.) Leverage Gift Tax Exemptions: Take advantage of the current lifetime gift tax exemption, allowing you to transfer up to $13.61 million in appreciating assets into a third-party dynasty trust. 2.) Act Promptly: It's wise to act before January 1, 2026, when the lifetime gift tax exemption is expected to decrease by 50%. 3.) Consider an LLC Structure: For those actively trading cryptocurrencies, establishing a Limited Liability Company (LLC) to hold your digital assets can be beneficial. You can gift the LLC interest to an irrevocable trust, which may help shield appreciated crypto value from estate taxes.   As the cryptocurrency market continues to evolve, staying updated on these protective measures is essential for maintaining and enhancing your digital wealth. Consulting with our team of experienced estate planning attorneys can help you customize these strategies to fit your unique circumstances while ensuring compliance with current laws.

💎 Estate planning for cherished family heirlooms and valuable personal property is a crucial yet often overlooked aspect of preparing for the future.    The first step in protecting your family treasures is to create a comprehensive inventory. This step is crucial for several reasons: 1.) It provides an accurate valuation for equitable distribution among beneficiaries. 2.) It helps in determining appropriate insurance coverage. 3.) It can be useful for tax purposes, especially for items of significant value.   When documenting your wishes, you have two main options: a will or a trust. Regardless of which method you choose, the key is to be as clear and specific as possible in your instructions. Ambiguity can lead to family disputes and potentially costly legal battles, which can not only deplete the value of your estate but also strain relationships among your loved ones.    Remember, estate planning for personal property is not a one-time task. As you acquire new items or your circumstances change, it's important to review and update your plan regularly. This ongoing process helps ensure that your family heirlooms are protected and become lasting gifts for future generations. 

📑 Dementia's global impact is escalating, with Alzheimer's disease projected to affect 13 million Americans by 2050. It may not be the first thing on your mind when receiving the diagnosis, but the emotional and financial strain of dementia care underscores the importance of early planning. Financial preparedness is crucial following a dementia diagnosis. Designating a financial representative through a durable power of attorney (DPOA) is essential. This individual can oversee finances, handle bills, and plan for long-term care expenses. Organizing financial records, automating bill payments, and reviewing estate plans are vital steps. Next, ensuring that a living will and health care directive are in place is important for expressing the patient's end-of-life care wishes. These documents should appoint someone to make medical decisions when the patient can no longer do so. Open communication between the patient, family members, caregivers, and medical professionals is essential. The sooner you address financial and medical considerations, the more prepared you and your family will be to navigate the challenges of dementia care, potentially alleviating some of the associated stress.

🎆 Add withdrawing from your inherited IRA to your New Years to-do list. Since the SECURE Act of 2019, IRA accounts inherited by non-spouse beneficiaries from individuals who died after January 1, 2020 must now choose between a taxable lump sum withdrawal or transferring funds to an inherited IRA that must be emptied within a decade. The IRS clarified in 2022 that if the original owner had started taking required minimum distributions (RMDs), non-spouse beneficiaries must take annual RMDs for nine years and empty the account in the tenth year. If RMDs hadn't begun, beneficiaries have more flexibility in withdrawal timing within the 10-year period. Due to initial confusion, the IRS waived penalties for missed RMDs from inherited IRAs for 2021-2024. However, starting in 2025, beneficiaries must comply with RMD rules or face penalties. Inherited Roth IRAs follow the 10-year rule but offer tax-free withdrawals without RMDs. #CaryEstatePlanning #EstatePlanning #YourPeaceOfMind #OurPassion #HonestPlanning #DisabilityPlanning #EstatePlanningLawyer #WillsandTrusts #NCEstatePlanning #PlanningNotPaperwork #SECUREAct #InheritedIRAs

As you consider the upcoming "Great Wealth Transfer" from baby boomers to younger generations, you should recognize the importance of transparency in estate planning. As the weather gets colder and the season of giving sneaks up on us, you need to understand that unexpected or seemingly unfair inheritance distribution can cause significant family conflicts and emotional distress. To avoid these issues, it's crucial that you be transparent when it comes to your estate plan while you're still alive. You might find that wills are a contentious subject, often treated as taboo due to their association with death. Don't be afraid of awkward conversations. Discussing your intentions can help mitigate potential negative feelings among your loved ones. Treat your will as a draft open for discussion with your loved ones. While you'll maintain your autonomy in decision-making, you should value their input, especially for smaller items with sentimental value.  Make it a goal to promote communication, reduce potential conflicts, and make the difficult time following your passing somewhat easier for those you leave behind. 👨👩👦 #CaryEstatePlanning #EstatePlanning #YourPeaceOfMind #OurPassion #HonestPlanning #EstatePlanningLawyer #WillsandTrusts #NCEstatePlanning #PlanningNotPaperwork

🧍Estate planning for singles is often more complex than many assume, despite the lack of immediate family considerations. It's crucial to ensure your assets are managed according to your wishes, both after death and in situations where you're unable to make decisions yourself. Key components of estate planning for singles include healthcare directives and powers of attorney. A healthcare power of attorney designates someone to make medical decisions on your behalf, while an advance directive outlines your preferences for end-of-life care. Similarly, a financial power of attorney appoints someone to manage your finances if you're incapacitated. Creating a will is essential for specifying how you want your property distributed after death. A revocable trust can be a useful tool for managing assets and avoiding probate. It's also important to be aware of state inheritance tax laws, which can significantly impact non-family beneficiaries. #CaryEstatePlanning #EstatePlanning #YourPeaceOfMind #OurPassion #HonestPlanning #EstatePlanningLawyer #WillsandTrusts #NCEstatePlanning #PlanningNotPaperwork

🇺🇸The upcoming election has raised questions about potential changes to estate tax exemptions and other related policies, prompting many to consider adjusting their estate plans. Currently, the estate tax exemption stands at $13.61 million per person and $27.22 million for married couples, thanks to the Tax Cuts and Jobs Act (TCJA) of 2017. However, these exemptions are set to decrease after 2025 to $7.5 million per individual and $14.5 million for married couples, depending on the inflation adjustments. For ✨high-net-worth✨ individuals expecting the exemption to be lowered, make large gifts before the end of the year. The IRS has indicated that such gifts would likely not be "clawed back" for future tax assessments. Even gifts below the exemption amount may be beneficial if the assets are expected to appreciate significantly. Trusts are another effective tool for managing potential changes in estate taxes. Options like dynasty trusts offer flexibility and potential tax benefits. It's also wise to review life insurance policies, which are often used to fund future tax obligations. #CaryEstatePlanning #EstatePlanning #YourPeaceOfMind #OurPassion #HonestPlanning #EstatePlanningLawyer #WillsandTrusts #NCEstatePlanning #PlanningNotPaperwork #TCJA #Election2024

Contrary to popular belief, irrevocable trusts can be modified under certain circumstances. While these trusts are designed to be permanent, changes in family situations, tax laws, or outdated terms may necessitate updates. The process of modifying an irrevocable trust requires careful consideration and proper handling. The modification process begins with clearly identifying the reasons for the desired changes. These may include correcting drafting errors, addressing family changes, altering trustee arrangements, or adapting to new tax laws In North Carolina, there may be multiple ways to execute a change to the trust terms: 1.) Judicial Amendment 2.) Decanting 3.) Termination When considering modifications to an irrevocable trust, it's essential to thoroughly evaluate potential tax implications. This includes assessing the impact on estate taxes, generation-skipping transfer taxes, income taxes, and gift taxes. Careful attention to these tax considerations can help avoid unintended consequences and ensure the desired outcomes are achieved. #CaryEstatePlanning #EstatePlanning #YourPeaceOfMind #OurPassion #IrrevocableTrusts #EstatePlanningLawyer #WillsandTrusts #NCEstatePlanning #PlanningNotPaperwork

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