A Will or a Trust- Which One Is Bet For You?

Suppose youre an early retiree living on a fixed income. In that case, 2026 brings confirmed changes you need to understandespecially around staying under the 400% Federal Poverty Level (FPL) to maintain ACA premium subsidies.The Two Key Updates:Enhanced ACA tax credits will expire after 2025.Congress has now passed legislation letting the expanded premium tax credits (originating in the American Rescue Plan and extended by the Inflation Reduction Act) lapse beginning in 2026.The subsidy cliff returns in 2026. With enhanced credits eliminated, the traditional cutoff at 400% FPL is reinstated, and crossing that threshold could result in the loss of all subsidy eligibility, leading to significant premium increases. What Early Retirees Should Know On-Exchange (Marketplace) Plans:Subsidy eligibility will once again be limited to households at or below 400% FPL. Exceeding that income level in 2026 could mean losing all premium assistance and facing significantly higher costs.Off-Exchange Plans:These are direct-to-carrier, full-price planswith no subsidies or Marketplace involvement. Silver options might offer better pricing directly through the carrier than on the Marketplace.Consider Smart Income Planning:To retain subsidies, many early retirees are working with both their broker and financial advisor to manage how income is recognized throughout the yearsuch as timing withdrawals or shifting income sourcesto remain under the 400% FPL threshold.This is not financial advicejust a reminder to consult trusted professionals. Aligning your retirement income strategy with your healthcare needs can help maintain premium support until you become eligible for Medicare.Why It Matters:Exceeding 400% FPL in 2026 could result in hundreds of dollars more per month in premiums.With no Medicare yet, coverage costs could remain high for years.Thoughtful income planning now can preserve subsidies during your critical early retirement years.Final Thoughts:As an early retiree, planning is essential. Your health coverage and income are deeply interconnected, primarily through 2026 and beyond.To navigate these changes successfully:-Consult both your financial advisor and your health insurance broker-Monitor your FPL percentage annually.-Strategize income timing and coverage decisions together. If youd like to explore your optionsor are curious how this applies to your householdplease feel free to reach out to us at Baker Consulting Services at 724-594-7648.  

You finally did it. You signed the papers, got the binder, and checked Estate Planning off your list.  But now what?If that beautifully prepared binder is collecting dust on a shelf, tucked in a drawer, or forgotten in a box, youre not alone. So many families work hard to create a plan, only to assume the job is done.Heres the truth: most estate plans fail. Not because you did anything wrong. Not because of a legal misstep. They fail because no one told you what to do after you sign. At Bellomo & Associates, we believe your plan should live and breathe alongside your life. The work doesnt end with the signature; it begins there. Here are the three key things you must do to make sure your estate plan works when your family needs it most. Update Your Plan RegularlyThink of your estate plan like a car. You wouldnt buy one and drive it for ten years without an oil change, right? The same idea applies here. Your plan needs regular check-ups to keep it running smoothly.Life changes. And when it does, your plan should reflect that. You should review your plan if:You got married or divorcedYou had a child or grandchildYou moved to a new stateYou bought or sold a home or businessEven if your circumstances havent changed, the laws might have. Or maybe the people you once trusted to step in for you have changed. We recommend reviewing your plan every 2 to 3 years, or sooner after any major life event. Thats why our clients love our maintenance program; its our way of walking alongside you through lifes changes. Fund Your TrustThis is where most estate plans quietly break down. You created a trust but did you put anything into it? If your trust isnt funded, meaning your assets arent properly titled, its just paper. Your family may still end up in probate court, facing delays, confusion, and extra costs. Heres a quick checklist to consider:Is your home deeded to your trust?Are your bank and investment accounts titled correctly?Do your retirement accounts and life insurance policies match your plan?Not sure? Were happy to help. We do this every day, and we love making it easy for our families. Educate Your HelpersNaming someone as a trustee, power of attorney, or executor is important. But if they dont know theyve been chosen or dont know what to do, it can lead to chaos at the worst time. Your helpers need to know:That theyve been named.What their role involves.Where are your documents?How to reach your attorney.We love it when clients bring their helpers to workshops or invite them to a quick meeting. One short conversation now can save your family from heartache later. Bonus: Give Yourself a Quick Check-UpAsk yourself these questions:Have I reviewed my plan in the past 2 years?Is my home titled in the name of my trust?Are my financial accounts correctly assigned?Do my agents or trustees know theyve been named?Do they know how to reach my law firm?If you answered no to even one, your plan might not work as you intended. But dont worry, you dont have to start from scratch. How We Help Keep Your Plan AliveAt Bellomo & Associates, we dont believe in one-and-done planning. Thats why we created our Maintenance Program, the Red Wagon Club. Its a simple, affordable way to keep your plan current and your family protected. As a member, youll receive:Annual plan reviewsUpdates for legal changesOngoing support to fund your trustEducational tools for your helpers24/7 access to your documents through our secure client portalBecause your life isnt standing still, and neither should your plan. Bottom LineYouve already done the hard part. You got the plan in place. Now lets make sure it works the way you intended. Pull that binder off the shelf. Lets dust it off together and make sure your legacy is protected for the people you love. Register for a Workshop to review your plan or learn how we help families like yours every day. Wed love to see you.

Trust administration is a critical process that involves managing assets, overseeing distributions, and handling legal obligations within a trust. While it can seem intricate and time-consuming, seeking legal assistance for trust administration offers numerous benefits. In this article, we will delve into the key components of trust administration, including paying off obligations, gathering assets, and ensuring smooth distribution, while highlighting the advantages of enlisting professional help.1. Paying Off Obligations: Ensuring Financial ResponsibilitiesOne of the essential tasks in trust administration is settling the financial obligations of the trust. This involves identifying any outstanding debts, taxes, and other financial commitments left behind by the Grantor. Ensuring that these obligations are promptly addressed is crucial to maintain the integrity of the trust and uphold the wishes of the Grantor. Legal experts specializing in trust administration can navigate the complex landscape of financial obligations, ensuring compliance with legal requirements and preventing any potential disputes.2. Gathering Assets: Streamlining the ProcessCollecting and managing the assets held within a trust is a multifaceted task. Trust administrators need to locate, evaluate, and categorize the assets, which can range from real estate properties to investment portfolios. Enlisting legal assistance streamlines this process, as professionals can employ their knowledge and resources to efficiently identify all assets, assess their value, and handle the necessary documentation. This proactive approach minimizes the risk of oversight and ensures that the trusts assets are properly accounted for and managed.3. Distributing Assets: Fulfilling Beneficiary WishesThe distribution of assets to beneficiaries is a significant aspect of trust administration. Depending on the terms outlined in the trust document, assets may be distributed to beneficiaries immediately after the Grantors passing or at specific intervals over time. Legal experts play a crucial role in ensuring that these distributions adhere to legal requirements and the Grantors wishes. They help navigate potential conflicts among beneficiaries, interpret complex trust provisions, and implement fair and equitable distribution strategies.Benefits of Seeking Legal Assistance for Trust Administration:a) Expertise in Complex Legal Procedures:Trust administration involves intricate legal procedures and compliance requirements. Legal professionals specializing in trust law possess the knowledge and experience to navigate these complexities, minimizing the risk of errors and legal disputes.b) Mitigating Disputes:The presence of a legal expert can help prevent disputes among beneficiaries or other interested parties. Their objective guidance and adherence to legal protocols can mitigate conflicts that may arise during the administration process.c) Efficient Document Preparation:The documentation involved in trust administration is extensive. Legal professionals are adept at preparing and managing the required paperwork, ensuring accuracy and compliance with legal standards.d) Maximizing Tax Efficiency:Tax implications are a significant concern in trust administration. A knowledgeable legal expert can help devise strategies to minimize tax liabilities, preserving more of the trusts assets for distribution to beneficiaries.e) Focusing on Executor Duties:By outsourcing the legal aspects of trust administration, trustees can focus on their primary duties, such as overseeing investments and ensuring beneficiaries well-being.End NoteIn conclusion, trust administration involves multifaceted responsibilities, including settling financial obligations, managing assets, and distributing them to beneficiaries. Seeking legal assistance for trust administration provides numerous benefits, from navigating complex legal procedures to mitigating disputes and ensuring efficient document management. By enlisting the expertise of legal professionals, such as those at Burr Law, trustees can fulfill their fiduciary duties while upholding the intentions of the trustor and ensuring a smooth and seamless administration process. Contact Burr Law today to access their specialized trust administration services and navigate the complexities of trust management with confidence. Call us today with any questions 720-500-2076.