Recent News & Blog / Estate Planning
A self-directed IRA can benefit your estate plan — but know the risks
IRAs can be powerful estate planning tools. With a “self-directed” IRA, you may be able to amp up the benefits of these tools by enabling them to hold nontraditional investments that offer potentially greater returns. However, it may also present unfavorable tax consequences. Contact the CPAs and tax advisors at SEK for your estate planning questions.
Beware these 5 estate planning pitfalls
No one likes to contemplate his or her mortality, but having a plan in place can provide you and your loved ones peace of mind should you unexpectedly become incapacitated or die. Here are five basic pitfalls you’ll want to avoid. Contact the CPAs and estate planning advisors at SEK for assistance to help ensure you’ve covered all the estate planning bases.
Undue influence claims may upend your estate plan
If someone is found to have exerted “undue influence” over your final estate decisions, a family member may challenge your will after your death. Establishing that you are “of sound mind and body” when you sign your will can go a long way toward combating an undue influence claim. Contact the CPAs and estate advisors at SEK for additional steps you can take to avoid future undue influence claims.
Don’t overlook digital assets in your estate plan
When it comes to digital assets, it’s important to know that, unlike other asset types, they leave little to no “paper trail.” Thus, unless your estate plan specifically provides for them, it may be difficult for your family to access these assets (or even know that they exist). Contact SEK for more information.
An HSA can be a healthy supplement to your wealth-building regimen
Health Savings Accounts (HSAs) allow eligible individuals to lower their out-of-pocket health care costs and federal tax bills. An HSA can also supplement your other retirement savings vehicles and offer estate planning benefits. Be aware that the tax implications of inheriting an HSA differ substantially depending on who receives it. Contact the CPAs and tax advisors at SEK for more information.
Assets with sentimental value require extra planning
Personal items — which may have modest monetary value but significant sentimental value — may be more difficult to address in an estate plan than big-ticket items. In some cases, the legal fees and court costs can eclipse the monetary value of the property itself. Contact the estate planning advisors at SEK for help with your estate.
Making will revisions by hand is rarely a good idea
To avoid the time and expense associated with formally updating your will, it may be tempting to simply make the change by hand and initial it. But this is almost always a bad idea. For one thing, handwritten changes are highly susceptible to a challenge. Even worse, depending on the law in your state, handwritten changes may not be binding.
Watch out for “income in respect of a decedent” issues when receiving an inheritance
Most people appreciate inheritances. But in some cases, they may turn out to be too good to be true. “Income in respect of a decedent” (IRD) may create a surprise tax bill for those inheriting certain types of property. Fortunately, there may be ways to minimize the IRD tax bite. Contact the CPAs and tax advisors at SEK for your tax questions.
New option for unused funds in a 529 college savings plan
Many parents begin saving with 529 college savings plans when their children are young. What if you have a large 529 plan balance but your child doesn’t need all the money for college? There’s a new 529-to-Roth IRA transfer. Contact the CPA's and business advisors at SEK for more information and tax tips.
Lines may blur when it comes to estate and family business succession planning
If you own a closely held business and don’t take the proper estate planning steps to ensure that it lives on after you’re gone, you may be placing your family at risk. One challenge of transferring a family business is distinguishing between ownership and management succession. Contact the CPAs and business advisors at SEK to learn how to protect your family business and ensure the right estate planning.