By the attorneys of Jenkins Fenstermaker, PLLC posted in Legal News on Thursday, June 6, 2019.

Advance medical directives-documents that inform medical providers of your wishes for treatment should you become incapacitated-are an important part of long-term care and estate planning. Residents of Kentucky (KY) should be aware of the specific regulations governing KY durable power of attorney arrangements and KY living will documents.

Beneficiaries of a will in Kentucky may be subject to the Kentucky inheritance tax. The inheritance tax is different from an estate tax-which was repealed in Kentucky in 2002-because it is paid by the beneficiaries rather than the estate. Whether a tax comes out of an estate or a legacy, however, most people making wills would prefer to avoid taxes on inheritance if at all possible.

Trusts are an important tool in estate planning. While the concept of a trust has existed since ancient times, the governance of these agreements is ever-changing. Establishing an irrevocable trust in Kentucky can help you manage and distribute your property and wealth in a way that reduces tax burdens and assures the security of the assets you have worked hard to accumulate over your lifetime.

Many factors affect how an Individual Retirement Account (IRA) fits into an estate plan. The rules for implementing a qualified IRA can be complicated, and while the tax consequences can be beneficial, they can also be serious if the account is not implemented correctly. In order to discover how to put IRAs and estate planning together, you will need to look broadly at your income, assets, and your retirement goals, and then work with a qualified estate planning attorney who knows your situation and your goals.