Naming your minor children as beneficiaries of life insurance policies, retirement accounts, or other financial assets may seem like the simplest way to provide for their future. However, this decision can create unintended legal, financial, and logistical challenges. Read below to understand why you should avoid this method and other alternative approaches to use insteadContinue reading "Why You Shouldn’t Name Your Minor Children as Named Beneficiaries"
The Garn-St. Germain Act and Estate Planning: Protecting Your Property Transfers
Estate planning is all about ensuring a smooth transition of assets while minimizing legal complications and financial burdens. When it comes to real estate, a key concern for many homeowners is whether transferring their property into a trust or passing it to heirs will trigger immediate mortgage repayment. Fortunately, the Garn-St. Germain Depository Institutions Act ofContinue reading "The Garn-St. Germain Act and Estate Planning: Protecting Your Property Transfers"
Withdrawal Rules for Inherited Retirement Accounts
When you inherit a 401(k), IRA, or other retirement account, the rules governing withdrawals dependon several factors, including whether the account is a Roth or non-Roth, your relationship to the originalaccount holder, and recent legislative changes like the SECURE Act of 2019. Understanding these rules isessential to avoid penalties and optimize tax efficiency. The 10-YearContinue reading "Withdrawal Rules for Inherited Retirement Accounts"
Should I Name a Person or a Trust as My Beneficiary on a Retirement Account?
When planning your estate, one of the most critical decisions is determining how to pass on your 401(k), IRA, or other retirement accounts. You have two primary options: naming beneficiaries directly or naming a trust as the beneficiary. Each approach has distinct advantages and disadvantages, particularly concerning tax treatment, asset protection, and control over distributions.Continue reading "Should I Name a Person or a Trust as My Beneficiary on a Retirement Account?"
Anatomy of a Will
Wills and trusts are the backbone of estate planning. While wills and trusts differ, they each serve their own purpose. This article will break down the different pieces of a will. (To see the anatomy of a trust, see this article.) Laws vary by state and wills in one state may vary from what's neededContinue reading "Anatomy of a Will"
Navigating Real Property Transfers After Death
As an estate planning attorney licensed in Virginia and Maryland, I often receive questions about how real estate is handled after someone passes away. This article explains key aspects of real property inheritance in these states, including how property passes to heirs, the meaning of “drops like a rock” in Virginia, when probate is required,Continue reading "Navigating Real Property Transfers After Death"
Gift and Estate Tax Exemption Amounts Increased for 2025
The IRS has announced inflation-adjusted increases to key tax exclusions for 2025, presenting significant opportunities for estate planning. The annual gift tax exclusion has reached a record $19,000 per recipient, and the lifetime estate and gift tax exemption has increased to $13.99 million per individual. These updates offer enhanced flexibility for wealth transfer strategies inContinue reading "Gift and Estate Tax Exemption Amounts Increased for 2025"
What Does the Trump Victory Mean for the Estate Tax Exemption?
The outcome of the recent election has some Americans asking how the federal estate tax exemption might be affected. This is an especially important topic for estate planning, given that the current exemption rate is set to change unless new legislation is enacted. At Mathews Law, we’re here to help you understand the current law,Continue reading "What Does the Trump Victory Mean for the Estate Tax Exemption?"
Revocable vs. Irrevocable Trusts: Which Is Better?
When it comes to estate planning, trusts are powerful tools that offer several key benefits, such as avoiding probate, reducing estate taxes, and providing privacy. However, not all trusts are created equal. The two main types are revocable and irrevocable trusts, each with its own set of advantages and disadvantages. Here, we’ll explore the differencesContinue reading "Revocable vs. Irrevocable Trusts: Which Is Better?"
The Hidden Costs of Procrastinating Your Estate Plan
If the thought of making an estate plan seems daunting, it might be way down on your list of priorities. After all, with day-to-day expenses, savings goals, and unexpected costs, thinking about what happens to your assets after you're gone can feel intimidating and overwhelming. As an estate planning attorney, I've seen how procrastinating onContinue reading "The Hidden Costs of Procrastinating Your Estate Plan"