Many Texas residents have individual retirement accounts as part of their investment portfolios. IRAs are attractive to investors due to beneficial tax considerations. However, investors should be aware of tax rules when including an IRA in their estate. A recent ruling by the U.S. Tax Court details a complicated case involving an IRA involved in probate litigation.
IRA rules can make probate administration complicated
Estate planning should be a priority
Most Texas residents don't give much thought to what might happen when they die or if they become incapacitated. Many believe they do not have enough assets to worry about creating a plan. However, financial experts contend that those with assets over $150,000 total, including their home, should carefully consider estate planning.
Go beyond just signing documents in estate planning
Most Texas residents don't want to think about the possibility of being incapacitated and no longer able to make decisions. They also often avoid discussing what will happen with their property after they die. But those issues must be addressed in detail when estate planning. But even having a plan in place with all the documents signed may not be enough. Experts suggest several things to keep in mind to ensure that someone's wishes are carried out after his or her death.
Consider many factors in long-term care planning
Many Texas residents believe they have invested wisely for the future and that they are prepared to handle any medical expenses they may incur in their retirement years. However, a certified care resource specialist, who has recently studied America's aging demographic, believes that many in the elder population will be ill-equipped to handle their financial burdens. He suggests a careful evaluation of long-term care issues and their effects on the elderly.
