How Is Obamacare Working Out for You?

[Danzig]

Originally Posted by GenuineRisk

That is very interesting; I didn't know that. I know someone who works in trusts and estates at a law firm, and he said most of what the law firm does is help ultra wealthy folks figure out how to avoid their estates paying out any taxes at all when they die. Lotta money and valuables held "in trust," which means that an individual doesn't technically own it, a trust, which never dies, owns it.

Of course, the Commonwealth of Pennsylvania has estate tax on everything a person owns, and if you aren't a direct descendant of the person, the tax will be 15 percent (it's 4.5 percent on direct descendants). So probably the best legal advice there is not to die as a resident of Pennsylvania.

Ask him about it, its a very clever way to handle those taxes. Then on trusts, you have revocable and irrevocable...the latter is probably what wealthier folks do..I know when we talked to the guy handling our trust, I asked if revocable would protect against what I said above about nursing homes, it doesn't. There are rules tho to protect one spouse if other has to get care..Not sure about irrevocable...fits for some but I didn't ask about it. But some folks are uncomfortable with the irrevocable part! Also,, wealthy folks can afford a nursing home or home health..or they have long term care insurance. I recommend everyone look into that!
You can make the trust the beneficiary of life insurance....but you can also place someone else as the policy owner to protect it in case of a nursing home issue, just has to be at least five years before. Right now its a five year look back for assets, but they're talking about changing it to seven...


Oh, and if anyone is buying CDs to have money to leave their kids...take at least a third of that money and buy a life policy.
A 5000 CD gets you five k, and then interest right now is beyond awful
. take that five k to your life agent, let him/her show you what it will do.