But unless money is no object, before you move, check out the overall tax situation. That’s not just state taxes but also sales tax, property tax, death taxes and inheritance taxes. Otherwise, you could be in for a nasty surprise that makes life much more expensive than you expected.
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You’ll need to check with your target state to find out how to establish domicile. The definition of domicile varies by state, and failing to meet the qualifications could land you in the position of paying taxes – including estate taxes eventually – to your old state and your new state.
Senator McCaskill noted, “These arrests – the largest law enforcement action against these scammers to date – are an enormous victory for the thousands of victims, many of them elderly, whose sense of financial responsibility has been preyed upon by these criminals."
Separate property does not automatically convert to community property, nor does community property automatically become separate...Couples who change states sometimes sign agreements meant to protect their property rights, only to end up with some unpleasant surprises.
In order for your trust to be a beneficiary of any assets that have to be probated, there must be a last will and testament in existence which names the trust as the beneficiary of those assets upon the completion of probate. This is why having a last will and testament is also critical to have even when you prepare a trust.
If you don’t buy Part A when you first become eligible, your monthly premium when you do sign up may be 10% higher. You’ll have to pay the higher premium for twice the number of years you could have had Part A but didn’t sign up.
What should you do? The FTC says you can just hang up. I like to tell the caller, “Okay, but this sounds important so I want to record the call.” That results in an instant hang up on their end.
What should you not do? Absolutely do not press any buttons, on the phone or computer. Even if the call says you can opt out of future calls by pressing a button, don’t. Remember these are thieves and pressing any button may be giving them permission to bill you somehow.
If this sounds ridiculous, keep in mind, it’s been enormously successful. Federal officials say before being stopped by alert family members, some of the elderly victims were sending envelopes full of cash every week.
One misconception about wills is that having one will avoid probate. Unfortunately, that is not the case because probate will be required any time a person dies with assets titled in the person’s name alone regardless of whether that person left a will.
If you are 65 or older in 2016, you will still be able to use the 7.5% threshold. For people with significant medical expenses, this should save a lot in taxes. However, be prepared for this to end. Beginning in 2017, all taxpayers will have to use the 10% threshold, regardless of age.
The better plan, however, would be for the two of you to establish a trust now which would protect you in the event of a common death. As it stands now, if the two of you died at the same time or one of you died shortly after the other, there would be a probate of those investment accounts because they would be owned by the last one of you to die.