Archive for May 2017
Don’t Get Stuck in a Nannygate Tax Situation
Even if you are not a high profile politician being considered for public office, you should know that the so-called “nanny tax” refers to any household employee, including caregivers and housekeepers. Remember Zoë Baird? She was on track to be the first female U.S. attorney general in 1993, when it was revealed that she had…
Read MoreThink of Your Will as a Tribute and an Act of Caring
Think of your will as a love letter that will tell how you want to care for your family and friends when you are gone. It is not just a way to direct how you want your assets to be distributed. Estate planning can make people uncomfortable, since it forces us to contemplate our own…
Read MoreLegislation to Lighten Estate Tax Didn’t Pass in the Past, May be Reintroduced Again
The proposed legislation would, according to the Representative from Maryland, make it easier for family business owners to transfer their business to the next generation. A different approach to estate taxes comes from a House Republican, who proposes that taxpayers make annual payments for a certain number of years during their lifetime, instead of having…
Read MoreGreat Grades and Great Planning Equally Needed for a College Education
The cost of higher education is growing so rapidly, that students and families are finding it a huge financial challenge. Succeed by starting savings and planning as early as possible. Here’s a scary number: the cost of a college education is growing faster than inflation. Tuition increased by approximately 9% from 2012 to 2017. Figuring…
Read MoreFor A Comfortable Retirement, Start Planning Early
For a healthy nest egg that will provide you with an enjoyable, worry-free retirement, you’ll need to start saving and investing now. It takes time and smart planning. Working hard on building your retirement nest egg right now? That’s excellent! Here are five key elements of successfully growing wealth from Nasdaq’s recent post, “5 Considerations…
Read MoreWhen Bitcoin and Digital Assets are Part of the Estate
Because they are relatively new, dealing with digital currency and other digital assets requires a little extra care in estate planning. Whether you think bitcoins are the global currency of the future or a financial disaster, many Americans have bitcoins, and practically all Americans have digital assets of some kind. Estate planning today needs to…
Read MoreSteps Seniors Need to Take for Their Estate Plan and Their Loved Ones
Distributing assets is only one part of an estate plan’s purpose. The other is to provide clear direction to family members concerning aspects of aging, including illness and end-of-life decisions. The word “estate” may bring to mind a large home on a sweeping piece of property, but it also refers to any person’s possessions—including regular…
Read MoreConverting a Traditional IRA to a Roth May Benefit Your Heirs
Converting sooner than later, could yield a bigger account to your heirs; do the math first Deciding whether or not to convert a traditional IRA to a Roth requires crunching the numbers. If your plan is to leave the IRA to an heir, you’ll want to work with an estate planning attorney to make sure…
Read MoreWhat Happens When the Executor and Heirs Disagree?
There are rules that govern what the executor can and cannot pay themselves, but often the only way to resolve a dispute between the executor and heirs is litigation. Here’s an example of what happens when things don’t go as planned in estate planning. A parent dies, and has left everything to his two children,…
Read MoreOften Overlooked, at a High Cost: Portability Election
Portability is not as well-known as other estate planning tools, like wills or trusts. But overlooking electing portability can become a costly mistake. Fortunately, there are some remedies. Given the size of the federal estate tax exemption, it’s not unusual for most people in the middle income tax brackets to forget to make a portability…
Read More