This guide can be for one spouse upon the death of the other, for an executor or successor trustee, or for adult children upon the death of the second parent. It may seem morbid to think about, but keep in mind that the more homework you do upfront, the easier it will be on the people you leave behind. This information should be shared with the appropriate parties and updated as needed, at least annually.
Parsec has entered a strategic partnership with First Covenant Trust and Advisors LLC to offer you a full range of trust solutions while maintaining the relationship and investment advice you have built with Parsec. You don’t want to leave your loved ones with a call center to handle your estate. Instead, enable them to benefit from a boutique, high-service relationship with an assigned trust officer who personally knows you, your intentions and your family.
There is nothing that can kill the romance of upcoming nuptials more quickly than your partner asking you to sign a prenuptial agreement (aka prenup). But do you know what can really kill the romance? Divorce!
Did you know that your IRA beneficiary supersedes your will? No matter how carefully you’ve crafted your last intentions in your will, an IRA beneficiary that was never updated after your divorce and remarriage can unwittingly bestow your former spouse with your IRA inheritance, while also disinheriting your new spouse and children. That’s why it’s important to update your beneficiaries after major life changes such as marriage, divorce, births, illness, domestic issues and deaths.
When thinking about our own personal assets we have many choices. We can hold on to them (having our cake), swap them out (trading for a different cake), or sell them and buy a consumable asset (eating the cake).
I’m often asked this question: “With the federal estate tax exemption amounts being so high, do I really need an estate plan?” The answer I give is “Absolutely yes!”
Throughout my career at Parsec, I have had the opportunity to join our founder, Bart Boyer, at several client appreciation dinners. During these events, Bart would famously review the current economic environment and discuss how to build long-term generational wealth. Without fail, he always reminded clients that “there are only two ways to build wealth:
If you have recently inherited an IRA, may receive an inherited IRA in your future or are passing along your IRA to beneficiaries, it is important for you to be aware of the taxation of inherited IRA assets. Specifically, IRS requires you to take required minimum distributions (RMDs) from an inherited IRA. Since IRA accounts are typically funded with all — or almost all — pretax funds, every distribution from an IRA is taxed as ordinary income and can have a considerable effect on your tax liability. There have always been rules to require taxpayers to take these distributions and pay tax on them, but these rules have changed significantly in the last couple of years.