When you are budgeting for the latter portion of your life it is important to understand just how expensive long-term care has become in the United States today.

If you combine the average nursing home costs with the average length of stay you may be looking at an expense that exceeds $200,000, and a lot of people are going to have to plan ahead carefully to be able to pay these kinds of bills without decimating their legacies.

Medicare can help you in a lot of ways when you are a senior citizen, but one thing it does not do is pay for long-term care. This reality leads many people scrambling for solutions, and one option that exists is to apply for Medicaid, a government program that does pay for long-term care.

The challenge with Medicaid is the fact that there is an upper resource limit of $2000 in countable assets. The term “countable” is key however because some of your most valuable assets, such as your home, don’t count toward this limit. And, the healthy or community spouse can keep his or her half of shared countable assets within a certain limit. This limit has been raised to $113,640 for 2012; it was $109,560 in 2011.

It takes some intelligent planning to qualify for Medicaid while retaining all or most of your assets without incurring any penalties. If you would like to discuss the matter with a professional, simply contact an experienced elder law attorney to arrange for an informative consultation.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

When you look into the statistics regarding how prepared Americans are for aging and eventual death you find some disheartening numbers. Less than half of Americans have an estate plan in place, and this is not a good thing because exactly 100% of Americans are going to die at some point in time.

And, you never know what the future holds. You may say that you are too young to worry about planning for the future, but guess what? Each and every year tens of thousands of people who are under the age of 35 pass away for one reason or another.

When you are an adult in this age group you may well have a young family including dependent children who are relying on your income to maintain their standard of living. Do you think it is wise to make plans to provide for them should you pass away at a young age? Shouldn’t you ask yourself who would raise your children if both parents were to pass away together in an accident?

Though most people do not have an estate plan, the majority of individuals recognize that they should take action but they fall into a pattern of procrastination. One of the reasons for this is because addressing the reality of death is not the most pleasant prospect in the world. However, avoiding it is not going to make it go away.

The only way to break out of the cycle of procrastination is to seize the day and take action. If you’re not prepared for the future, right now would be a good time to pick up the phone to arrange for a consultation with an experienced estate planning lawyer

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

Estate planning is sometimes thought of as being strictly about arranging for the transfer of assets to your family after you die. You can look at it this way if you want to, but it is better to have a more holistic overview.

If you’re like most people you will go through a period of time before you pass away when you may need living assistance, and you would be living with your head buried firmly in the sand if you are among those who say that “it can never happen to me.”

The United States Department of Health and Human Services tells us that in fact a majority of senior citizens will someday reside in an assisted living facility of some sort or require in-home care. So the odds would say that you will eventually need such care if you reach senior citizen status.

We have all heard stories or seen dramatizations in movies or on TV of elder people being placed into nursing homes or assisted living communities. If this takes place when you are suffering from dementia and trying to cling onto memories, being forced to go to an unfamiliar place all of sudden without ever considering the matter can be especially terrifying.

For this reason it is not a bad idea to do some research and identify facilities that you would feel comfortable residing in should it become necessary. This way you have total control and you can feel comfortable moving into an environment that you have already investigated, one that you trust because it was your choice.

Planning for possible incapacity is a pragmatic act that can provide you with peace of mind. If you would like to discuss the legal aspects with an expert, take a moment to pick up the phone and arrange for a consultation with a good Pensacola elder law attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

There are numerous different legal instruments that are routinely implemented into modern estate plans. This is one of the reasons why you would do well to seek professional guidance when you’re making preparations for the future.

With this in mind let’s take a look at the QTIP or qualified terminable interest property trust. Let’s say that you get divorced from your first wife and have children from that marriage. You and your former spouse agree on a distribution of community resources and go your separate ways.

So you are holding assets that are yours and yours alone as you embark on life as a single individual, and perhaps your former spouse played a significant role in helping you accumulate your portion of the assets.

Eventually you decide to remarry, but you want the lion’s share of the assets that you are bringing into your marriage to go to your children after your death. You can make this happen through the creation of a qualified terminable interest property trust.

With these trusts you set it up so that your spouse can benefit from trust earnings and perhaps have access to some of the principal if this is what you want while he or she is alive. But your spouse has no say regarding who inherits the trust after his or her death. You name this beneficiary when you are creating the trust, and it would presumably be your children.

If you would like to learn more about the QTIP and other strategies for blended families, don’t hesitate to contact a good Mobile estate planning lawyer to set up an initial informational exchange.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

It is important to be aware of the potential for asset erosion that exists when you are planning your estate. The most significant source of asset erosion is the federal estate tax, and right now it is carrying a maximum rate of 35%. This is no small drop in the bucket, but to make matters worse the estate tax rate is scheduled to rise to 55% in 2013.

Implementing strategies that provide estate tax efficiency is going to be important to people who are in possession of assets that exceed the estate tax exclusion amount. This amount is $5 million right now but it is scheduled to be reduced to $1 million in 2013.

When you are assessing your estate tax exposure it is important to understand the fact that insurance policy proceeds are subject to the estate tax. For this reason a lot of people place their insurance policies into revocable life insurance trusts or ILITs.

You appoint a trustee to administer the funds and you name your beneficiary or beneficiaries. You could name your spouse as the primary beneficiary and your children as the secondary beneficiaries. Your spouse could benefit from the resources in the trust throughout his or her life without owning them so there is no estate tax exposure. The eventual transfer of the trust from your spouse to the children after his or her death would not be subject to taxation either.

If you are interested in learning more about irreversible life insurance trusts and other tax efficiency tools, the wise course of action would be to sit down and discuss your future with an experienced and savvy Mobile estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

One of the most stunning demographic trends of the current era would be the rapid aging of the United States population. Senior citizens are the fastest growing age group due to the fact that the baby boomer generation is reaching retirement age.

Some 10,000 people are applying for Social Security each and every day and this volume of applications is expected to be pouring in on a daily basis for the next 20 years. People are asking questions about Social Security as they get closer to retirement age and one of them involves working while receiving Social Security benefits.

The age at which you are eligible to receive your full Social Security benefit varies depending on the year of your birth. For people who were born prior to 1955 the full for retirement age is 66. It then goes up by two months every year until 1959. Individuals who were born after 1959 become eligible to receive their full Social Security benefit when they reach the age of 67.

Once you reach the full retirement age you are allowed to work and earn as much money as you want to while still receiving your full Social Security benefit. However, you do not have to wait until you reach the full retirement age to apply for Social Security. You can file when you are as young as 62 years of age, but your benefit is adjusted and you receive a reduced benefit.

If you are receiving your Social Security benefit before you reach full retirement age, you get the entirety of the reduced benefit that you’re entitled to while you are still working if your earnings do not exceed $14,160. (This figure is accurate for 2011.) Your benefit is reduced by one dollar for every two dollars that you earn above that threshold.

If you would like a more detailed explanation and additional information about Social Security, simply visit the Social Security Administration website.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

During the 2011 calendar year there have been a handful of measures introduced into the House of Representatives that would repeal the federal estate tax. Many people feel as though the estate tax is not a fair and just levy and they would like to see it eliminated. The fact is that individuals who hold this point of view do have some solid logical ammunition to support their perspective. With this in mind let’s take a look at three of the common arguments against the estate tax.

Double Taxation

Perhaps the most profound assertion regarding the estate tax is the observation that it is an instance of double taxation. The assets that comprise your estate were accumulated with your after-tax earnings. The things that you possess are not taxed by the virtue of their very existence.

If you have a $5 million painting hanging on your wall you purchased it with after-tax income, and you probably paid sales tax as well. While you’re alive there are no further taxes to pay on the painting. But when a loved one inherits it after your death the transfer is subject to the estate tax. This is an instance of taxing something that has already been taxed.

Excessive Rate

Even if you were in favor of the estate tax for some reason, you would have to consider what a fair rate would be. Right now the rate of the federal estate tax is a whopping 35%. If that was not enough, at the beginning of 2013 it is going up to 55%. Many people find it difficult to justify the fairness of a tax that would take more of the taxable portion of an individual’s legacy than it would leave to his or her family.

Selective Imposition

If we need an estate tax as a country, why are the vast majority of citizens exempt from the tax? Is it fair to arbitrarily handpick those who will pay the tax and those who will not?

People who would favor an estate tax repeal make an interesting case. But as long as it remains in place, you’re going to have to find ways to seek estate tax efficiency. The best way to do that is with the assistance of a licensed, experienced, and savvy estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

If you think about something like moving from one house to another there are a great many details to consider. The most obvious things are going to be taken care of first and there is no possibility of overlooking them. But then there are some smaller details that you must address as well, and because of the enormity of the overall task it can be difficult to remember every last thing.

The above is also true when it comes to estate planning. Preparing all of the assets that you have been able to accumulate throughout your life for transfer to your loved ones while making plans for all of the possible eventualities of aging is a huge undertaking. So there are some finer details to consider when you are planning your estate as well, and one thing to keep in mind is the future well-being of your pet or pets.

Most people expect to outlive their pets, and of course they usually do. But there are exceptions, especially when you obtain a pet when you are a senior citizen. Pets can add a wonderful dimension to the lives of elders and pet ownership is not to be avoided. You just have to make provisions for your fine furry friends when you are planning your estate.

Another detail that could be overlooked is that of usernames and passwords. These days most people do a lot of business online and there may be situations where you need to provide access to certain accounts to selected heirs. Personal blogs and social network identities are something to consider as well.

One of the good things about retaining the services of an estate planning attorneys is that he or she will go through all of the details with you and make sure that you have all of your bases covered. If you do not currently have an estate plan in place or if your current plan is in need of revision, you may want to take action right now and get in touch with an experienced estate planning attorney to set up an informative initial consultation.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

Intelligent estate planning involves doing what is possible to prevent asset erosion. The primary way that the value of your estate can be reduced as you pass it along to your loved ones is through the imposition of the estate tax.

This federal levy can have life-changing impact on your legacy. Addressing it is one of the reasons why it is a good idea to work with an estate planning attorney throughout your life so that you can make the appropriate adjustments as your own financial situation changes and relevant alterations to the tax code are implemented.

It make sense to consider giving gifts while you are still alive in an effort to reduce the value of your estate while transferring assets to people who would otherwise be inheriting them. The powers that be are well aware of this so there is a gift tax in place the carries the same rate as the estate tax, which is currently maxing out at 35%. It should be noted that this rate is scheduled to increase to 55% when the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 sunsets at the end of 2012.

There are however some advanced estate planning strategies that can be implemented to gain tax efficiency. One of these would be to create a family limited partnership. These are essentially holding companies that include General Partners and Limited Partners, and all of them must be family members. The General Partner controls the assets that have been placed in the partnership and is solely responsible for moving assets and providing distributions to the LPs.

The Limited Partners have no rights of control, so the the fair market taxable value of their stake in the partnership is less than its actual monetary value. And of course the taxable value of the estate of the GP is going to be reduced by the amount of the interests in the partnership given to the Limited Partners. This is where the tax savings are derived.

To learn more about how an FLP can fit into your estate plan, simply take a moment to arrange for a consultation with an experienced estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

People who are contemplating their legacies often times feel the need to give something back to the community as a whole. Charitable giving is a part of many estate plans, and if you are capable of taking some action to make the world a better place you may want to consider doing so.

In addition to the selfless act of generosity there can also be some tax advantages involved in charitable giving and this is something to keep in mind as well. The best way to gain an understanding of how best to incorporate philanthropic efforts into your estate plan would be to discuss the matter with a qualified estate planning attorney.

If you do decide that you would like to give something to charity you are probably going to want to do some research so that you can feel confident that your contributions are going to truly worthy causes. There is a very valuable resource online at Charitynavigator.org that you may want to tap into when you are considering which charities to support.

This site is a comprehensive storehouse of information that breaks everything down in a very specific and easy to understand manner.You can find out just about everything you would want to know about virtually every charity imaginable and they even have a star rating system based on all relevant criteria to streamline things for visitors.

Another thing you may want to do is make sure that a charity that you are considering supporting has in fact gained tax-deductible status with the Internal Revenue Service. This information can be found on the IRS website.

Charitable giving can be a meaningful punctuation to your overall legacy. If you take the time to do the research you will invariably come away feeling comfortable with your choices and gain the intangible personal benefits that go along with an act of giving.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.