When is the Right Time to Talk to Your Kids About Your Estate Plan
Conversations about estate planning, particularly wills, can be emotionally charged. Yet, having open, honest discussions with your children about your plans is one of the most meaningful gifts you can give them. It ensures your wishes are understood, prevents misunderstandings, and reduces potential family conflicts down the road. At Botti & Morison, we take a team approach to estate planning. We aim to help families navigate these discussions with clarity, compassion, and confidence. Here are some tips to guide you as you talk to your kids about your Estate Plan: Choose the Right Time and Place Timing is everything. Select ... Read More
Understanding the New Rules for Inherited Retirement Accounts
The landscape of estate planning has undergone significant changes in recent years, particularly concerning inherited retirement accounts. As of the recent Internal Revenue Service (IRS) ruling finalized on July 18, 2024, heirs of retirement accounts now face new withdrawal requirements that could impact their financial planning and tax obligations. The New 10-Year Rule In the past, beneficiaries of inherited retirement accounts, such as Individual Retirement Accounts (IRAs) and 401(k)s, had the advantage of stretching out withdrawals over their lifetimes. This "stretch IRA" strategy allowed heirs to take smaller distributions over many years, minimizing their immediate tax burden and maximizing the ... Read More
It Is Important to Prepare Your Children for an Inheritance
It may be awkward to discuss your wealth with your children. Talking about how much money or property you have is usually viewed as taboo. Asking someone else about what they have is often considered impolite. But failing to talk to kids about how much they may inherit could leave them unprepared to handle even a modest amount, and often results in the money being squandered quickly. Baby boomers are considered the wealthiest generation and are set to pass that wealth on to their children. It's estimated that $68 trillion will be passed down from boomers within the next few ... Read More
If the Beneficiary Has Passed On, Who Ends up With the Inheritance?
Who will get an inheritance if the beneficiary is deceased? We call this "what if" planning and it is a critical part of the estate planning process. You may be wondering whether if you leave property to your brother Jim, but he dies before you, would his kids inherit the property in his place? The answer is, only if your living trust or will explicitly states as much. To ensure your document is correct, it's best to say so specifically in various particular ways. The surest way is to word your will or trust like this: “To my brother Jim, ... Read More
Preserve Generational Wealth With 3 Tips
Have you considered what is required to preserve generational wealth and your legacy? Or the impact an inheritance will have on family members in different stages of life after you are gone? You may worry that children and grandchildren will lose motivation and work ethic after they inherit. Some beneficiaries may experience favoritism, or relationships could dissolve over trivial disputes. How can you ensure their inheritance contributes to generational wealth and is used to achieve a better future? Your loved ones must be ready for this new responsibility. Ideally, an inheritance will improve their lives while ensuring its use follows ... Read More
The HJTA Responds to Prop 19 with an Initiative to Repeal the Death Tax
Many Californians are already feeling the effects of newly passed Proposition 19, also entitled the “Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.” The Act essentially amended the California Constitution and dramatically changed the property tax reassessment landscape in the State. Although some do support the terms and conditions of Prop 19, there is an effort to repeal the newly passed legislation completely by certain organizations. One of these includes the Howard Jarvis Taxpayers Association (HJTA), which is a California-based nonprofit lobbying and policy organization that advocates for taxpayers and protections for Proposition ... Read More
The Steps You Need to Take To Manage Your Inheritance of a Timeshare
The resort agent suggested Mom and Dad should leave the timeshare to their children in a deed so, when the parents passed, their children could enjoy the property. It seemed like a good idea at the time. Unfortunately, once Mom and Dad did pass, the children were shocked to receive demand letters from the resort charging them hefty annual maintenance fees. Those fees typically start at around $1,000.00 a year and go up. Additional charges could be imposed for extraordinary events like hurricane damage. Routine annual hikes of as much as four percent could outpace inflation. At four percent, in ... Read More
