The greatest tax advantage of Section 529 college savings accounts is that it is permitted for them to increase earnings without being subject to federal tax, and generally not to state income tax either. When the account beneficiary reaches college age, tax-free withdrawals can be made to finance the beneficiary’s qualified college expenses. Although 529 […]

Whenever you experience significant life-changing events, it is recommended that you revisit your estate planning documents to make certain that they are in compliance with your wishes. In Virginia, a final divorce decree affects specific aspects of estate planning, but a separation has no such impact. Unless expressly stipulated otherwise, upon the entry of a […]

Siblings are often contentious regarding the inheritance of their parents’ assets. However, such acrimony can be avoided by implementing certain steps that will prevent any type of forced sharing among your children. In order to prevent financial disputes among your adult children, refrain from using a pot trust, which is the term used by many […]

If you have a child or grandchild with special needs, you may wish to create a special needs trust to ensure that the child receives the necessary care and financial assistance through adulthood. The trust sets aside funds for the benefit of the child, and is managed by the trustees, who are usually family members […]

While you may wish to give your children their inheritance before you die, you may be unaware of the risks associated with such a move. Make certain that you are knowledgeable of the consequences of gifting property to your children, including a house, land or stock. If you have more than one home, and would […]

While creating their estate plan, many people fail to update their beneficiary designations on financial products, including bank accounts, 401(k)s, and life insurance policies. Brian Madgett, a vice president at New York Life who heads the advanced planning group, states that for the majority of people, the beneficiary designation comprises their estate plan. Several Americans […]

Most people do not consider making plans for their digital assets so that their loved ones and estate executor can access them after they die. But in this digital age of social media and online accounts, it is becoming increasingly essential to store your account passwords in order for family members and executors to locate […]

If you are going through a divorce, and are unable to reach an agreement with your spouse regarding the distribution of property, the court may make that determination for you. In order to avoid such a scenario, it is recommended that you establish a property division agreement that is acceptable to both of you. However, […]

Married couples and parents usually know who the beneficiaries of their estates will be, and who will be their health care proxy, or have the power to make health-care decisions on their behalf in the event they become incapacitated. If you are unmarried and have no children, you may wish to leave your assets to […]

A spendthrift trust can be useful if you have qualms that an heir will act irresponsibly with an inheritance or sell the right to payments if it is put into a trust fund. Individuals who suffer from drug or alcohol addiction may well be at risk for wasting an inheritance in order to support their […]