Articles Posted in Estate Planning

The introduction of cryptocurrency has created a number of new issues, which includes how these digital assets should be addressed in a person’s estate plan. Because the Internal Revenue Service has classified cryptocurrency as property capable of being taxes, it is possible to dictate how ownership of cryptocurrency should be passed in a person’s estate plan. In many cases, however, it can prove difficult to transfer ownership of cryptocurrency without creating a potential security risk. 

The Estate Planning Challenges Presented by Cryptocurrency

A person’s ownership of cryptocurrency is represented in that individual’s virtual “wallet”, which also stores the owners’ credentials and interacts with blockchains so users can both send and receive cryptocurrency. Consequently, the person who knows the access credentials to a virtual wallet has access to any cryptocurrency that is contained in the wallet. 

The retirement process is full of challenges. One of the best ways to make sure that you navigate this process successfully is to anticipate the various obstacles that lie ahead of you. The implementation of strategies to avoid or limit the severity of obstacles that do arise should be included in a retirement plan. 

The purpose of this article is to review some of the most common mistakes that you should anticipate as you consider and begin the creation of a retirement plan. 

# 1 – Failure to Create a Strategy at All

When it comes to preparation for retirement, an overwhelming number of American do not feel secure in their assets. Approximately only one in five Americans believe they have enough for retirement. This means that almost 50% of Americans have little or no confidence in their retirement savings. 

The Role of the SECURE Act

The House of Representatives passed the Setting Every Community Up for Retirement Enhancement Act (SECURE) in May, 2019. The purpose of this act was to increase retirement savings. The Act then stalled in the Senate, which makes the future of this body of legislation uncertain. 

There are many parents who have questioned how to create the best possible estate plan for their children. Some parents even make mistakes about how beneficiaries are able to access assets. As a result, this article reviews some important advice that should be followed by parents with young children.

# 1 – Create a Living Document

While it might not seem like it would directly help your children, one of the best steps to take is to make sure that your own living documents are written. 

The amount of attention as well as the volume of digital currencies like Bitcoin is at an all time high. 

Digital currency is just one of several trends away from traditional assets and towards digital elements. While digital currency has made business in some senses much easier, digital currency also present some challenges. 

For one, when the owners of digital currency die or become incapacitated, digital currencies can make the transfer of assets much more complex. This is because traditional estate planning documents were not designed to address the numerous challenges that can arise with digital currency. 

Remarriage among individuals who are 55 and older increased approximately 15 percent between 1960 to 2013. 

No matter the reason for remarriage, estate planning often becomes much more complex when a new partner is involved. These issues can be made even more complex if a couple makes the decision to remarry later in life.

# 1 – Determine what Each Person Brought into the Marriage

Many of us don’t keep our assets in tangible items. Instead, many people’s assets are retirement accounts including 401(k)s, IRAs, and worker benefit plans. 

One way in which retirement accounts differ from more tangible assets is that wills do not dictate how individual accounts are disposed. As a result, it is vital to make sure that beneficiary designations on individual retirement accounts are properly updated. 

After all, there are a number of events including births and deaths, which can greatly impact a person’s estate plans.

A recurring theme in estate planning is that it is not a once and done activity. Instead, it is critical to revise estate plans following major life changes. 

One of the countless life changes that many people still do not think necessitates changes to estate plans is divorce. In reality, divorce changes a number of things about asset ownership as well as forever alters plans that a couple might have for the future. 

If you’re navigating the divorce process, you might encounter irrevocable trusts.