If you own any trusts, are they accurate and up-to-date? You should also consider reviewing your recent financial statements, including your bank, retirement, and brokerage accounts, and any safety deposit boxes. It’s essential to keep an up-to-date inventory list, for example, the value of your home, other real estate interests, cars, jewelry, and other physical assets. Have you reviewed and revised (if necessary) an inventory of your assets? Only about one-third of adults 55 and older have a power of attorney. If you don’t have one it may be necessary for the court to appoint one. A durable power of attorney (POA) for your finances names an individual who can make financial decisions should you become incapacitated. Some states provide a statutory or standardized form, while others allow you to draft your own. Examples include medical directives, living wills, or advanced health care directives. Are your HCP and POA documents up-to-date and in a safe place?Ī health care proxy (HCP) is a document that names someone to express your desires and make health care decisions should you become incapacitated. If the beneficiary chooses to receive their payout as an annuity instead, any interest accrued may be subject to taxes. Beneficiaries typically don’t need to pay taxes on the life insurance death benefit they receive, especially if they receive it as a lump sum. In these or other relevant circumstances, you may want to modify the beneficiaries in your accounts. Reviewing your retirement and life insurance beneficiaries is important as people may get married or divorced, they may die, or a child or sibling may suddenly become a risk through addiction or an inability to manage money properly. Have you reviewed your retirement and life insurance beneficiaries? There are exceptions to this rule, and a financial professional can help you learn how it could impact your financial strategy. Any gifts above that amount must be reported to the IRS on your 2024 tax return (form 709). In 2023, the annual gift tax exclusion (or gift tax limit) is $17,000 per recipient without having to pay taxes on those gifts. Upon the death of the second spouse, the children inherit everything.Ģ.
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