Principles of Preserving Wealth
There are some fundamental estate management principles that can enable you to manage your financial and personal affairs during your lifetime and distribute your wealth after death. We encourage you to talk to an estate planning attorney for more details on each of the following documents you should have:
- Living Will - gives instructions about your medical care
- Power of Attorney - authorizes someone to handle legal and financial decisions on your behalf
- Durable Power of Attorney for Healthcare - allows
Contemporary research shows that about 70% of older Americans complete advance directives before their death. That's up from 30% only a decade ago.
There are also some financial documents to consider:
- Joint Ownership - holding an asset in joint ownership with a co-owner allows you to pass on the asset without probate
- Durable Power of Attorney - gives someone the ability to handle legal and financial decisions even if you cannot.
- Living Trust - transfers assets to heirs without probate
With extended life expectancy and a variety of treatment options available, the chance that you or someone close to you will benefit from an advance directive is greater than ever.
One more additional item to discuss with your attorney and accountant are gift taxes. The tax code allows an individual to gift up to $15,000 per person in 2021 without triggering any gift or estate taxes.
Read our full article, here. Please call us if you have any questions or would like to review your situation, 281-395-8300.
2021 Retirement Savings
The salary deferral amount for 401(k)s remains the same at $19,500, while the catch-up amount of $6,500 for age 50 and over also remains unchanged. However, the overall limit for these plans will increase from $57,000 to $58,000 in 2021.
Individual Retirement Accounts (IRA)
The limit on annual contributions remains at $6,000 for 2021, and the catch-up contribution limit for age 50+ is also unchanged at $1,000.
Roth IRA account holders will experience some beneficial changes. In 2021, the Adjusted Gross Income (AGI) phase-out range will be $198,000 to $208,000 for couples filing jointly. This will be an increase from the 2020 range of $196,000 to $206,000. For those who file as single or as head of household, the income phase-out range has also increased. The new range for 2021 will be $125,000 to $140,000, up from the current range of $124,000 to $139,000.3
If you’re curious about any of the above, or want to update or begin contributions to a retirement account, give us a call.