Family Estate Planning:
Between the current Federal and State of North Carolina tax rates, a
family stands to lose up to 52% of the value of their assets at the time
they pass. Other families stand to lose all but $2,000 of their assets to
Medicaid if they need long-term care. Both of these situations are
avoidable…with proper planning.
family stands to lose up to 52% of the value of their assets at the time
they pass. Other families stand to lose all but $2,000 of their assets to
Medicaid if they need long-term care. Both of these situations are
avoidable…with proper planning.
Maybe you don’t think you need estate planning. “That’s for the
Rockefellers,” many of my new clients say. Well, read this true story
about a man who grew up in a lower middle-class family…
One of my new clients had accumulated land over a 30 year period of
time. Some of the land had been used for farming, another portion for
rental homes, and the final portion was vacant. During the thirty years, a
population boom in our area raised the value of his property to a current
value of $7.5 million. Twenty years from now, his projected lifespan, the
land is projected to be worth in excess of $30 million. If he died today,
current Federal estate taxes, combined with North Carolina estate taxes,
would require his children to pay 52% of the value of his estate nine
months from the day he died ($3,900,000).
To complicate things, he had contracted cancer, so the possibility of
entering a nursing home was a distinct possibility. To qualify for
Medicaid, he would have to dissolve all but $2,000 of his assets. If they
didn’t like that, they could choose to use a private nursing home rather
than Medicaid, at a cost of approximately $70,000 a year…today. With
the average nursing home stay being two and one-half years, his family
faced a cost of $175,000….today. To afford that, a good portion of his
land would have to be sold…at fire sale prices. His good fortune had
become his misfortune.
________
Having a will does not help you avoid probate court, where the charge to
administer a probate case ranges from 4% - 10% of the value of the
estate.
Having your bank accounts and land titled as “JTWROS” can help you
avoid only up to 50% of Federal or North Carolina estate taxes.
Having a Revocable Living Trust does not protect your assets from
creditors.
And crossing your fingers (or your toes) is pointless.
Do you need estate planning? Yes. To what extent? I don’t know. But
that doesn’t matter. What matters is: do you know?
Tax laws change (there is a major change being considered right now).
New strategies become evident. The world around you changes. Seek
advice today.
Rockefellers,” many of my new clients say. Well, read this true story
about a man who grew up in a lower middle-class family…
One of my new clients had accumulated land over a 30 year period of
time. Some of the land had been used for farming, another portion for
rental homes, and the final portion was vacant. During the thirty years, a
population boom in our area raised the value of his property to a current
value of $7.5 million. Twenty years from now, his projected lifespan, the
land is projected to be worth in excess of $30 million. If he died today,
current Federal estate taxes, combined with North Carolina estate taxes,
would require his children to pay 52% of the value of his estate nine
months from the day he died ($3,900,000).
To complicate things, he had contracted cancer, so the possibility of
entering a nursing home was a distinct possibility. To qualify for
Medicaid, he would have to dissolve all but $2,000 of his assets. If they
didn’t like that, they could choose to use a private nursing home rather
than Medicaid, at a cost of approximately $70,000 a year…today. With
the average nursing home stay being two and one-half years, his family
faced a cost of $175,000….today. To afford that, a good portion of his
land would have to be sold…at fire sale prices. His good fortune had
become his misfortune.
________
Having a will does not help you avoid probate court, where the charge to
administer a probate case ranges from 4% - 10% of the value of the
estate.
Having your bank accounts and land titled as “JTWROS” can help you
avoid only up to 50% of Federal or North Carolina estate taxes.
Having a Revocable Living Trust does not protect your assets from
creditors.
And crossing your fingers (or your toes) is pointless.
Do you need estate planning? Yes. To what extent? I don’t know. But
that doesn’t matter. What matters is: do you know?
Tax laws change (there is a major change being considered right now).
New strategies become evident. The world around you changes. Seek
advice today.
| John Rukosky of Rukosky & Associates |
We believe there is a critical difference
between our firm and others that
perform only financial planning: while
others will refer you to a tax advisor
after having designed a financial plan
for you, at Rukosky & Associates
Financial Group Inc. you are
consulting with a tax accountant, so
we know your plan will succeed.
between our firm and others that
perform only financial planning: while
others will refer you to a tax advisor
after having designed a financial plan
for you, at Rukosky & Associates
Financial Group Inc. you are
consulting with a tax accountant, so
we know your plan will succeed.
Contact us:
508 Driewood Court
Raleigh, NC 27609
Office: 919.781.9319
Mobile: 919.906.4234
Fax: 919.791.0990
Email: john@rafginc.com
Raleigh, NC 27609
Office: 919.781.9319
Mobile: 919.906.4234
Fax: 919.791.0990
Email: john@rafginc.com
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