Here are the highlights from my daily blog for last week. If you’d like to read any blog in its entirety, just click on the link provided. Enjoy!!
Sunday, October 14, 2012
Many people start businesses with partners, often so they can benefit from the others' expertise, connections and finances. But sometimes one founder concludes over time that the relationship is flawed and parting ways would be best.
Every beginning has an end, just as every business partnership will eventually expire. Whether the conclusion of the partnership is by choice, health problems, or death, one should have a plan in place to keep things amicable. The best business plan: begin with the end in mind. To view this entire blog post click here.
The number isn't yet official—and won't be until later this year when the Internal Revenue Service will announce this and many other inflation adjustments. But it comes from two highly reliable sources.
In a time of political change and laws that may be shifting, the word is out on the annual gift tax exclusion. It has been projected to rise for the first time since 2009. The lesson to be learned here is that if, as they say charity begins at home and now you can be even more generous!To view this entire blog post click here.
For whatever reason, the aging parents have been bailing him or her out for decades. What brings this to a crisis point is when a parent’s health fails or a parent passes away. Then what?
When you think of a family “freeloader”, generally what comes to mind is that 'child' that never grew up, who makes absolutely no effort to be self-sufficient. While it's true, their parents share the blame, always footing the bill and enabling this behavior it still creates discontentment among family members. The family's ne're-do-well becomes an even greater source of family strife as those same parents begin to age and can either not longer support the child, or worse, their support compromises their ability to finance their own rising healthcare costs. Turns out the family's freeloader is even more destructive than you thought. To view this entire blog post click here.
Maintaining up-to-date estate plans is crucial to taking advantage of the benefits of advanced planning …
While you are living, essentially your estate plan is living too. And just as your life is evolving, your estate plan should change accordingly.
Unfortunately, Congress and the White House are constantly shifting. As a result, your estate plan must adapt, improvise and overcome. For wealthy families in particular, many of their estate plans are simply out of date, and that’s not something you can afford to let slide. Get with the program: your estate plan must adapt, improvise and overcome. To view this entire blog post click here.
In January 1999, a trust set up by Mitt Romney for his children and grandchildren reaped a 1,000 percent return on the sale of shares in Internet advertising firm DoubleClick Inc.
If Romney had given the cash directly, he could have owed a gift tax at a rate as high as 55 percent. He avoided gift and estate taxes by using a type of generation-skipping trust known to tax planners by the nickname: “I Dig It.”
All politics aside, one could learn a thing or two from Mitt Romney’s estate planning when it comes to transferring wealth. One particularly interesting instrument he made use of was the “Intentionally Defective Grantor Trust,” or IDGT. There you have it, tax planning strategies from the rich and famous; who better to learn from? To view this entire blog post click here.
If Congress fails to act, 14.7 million U.S. households would have a potential estate tax liability. The average tax due for these families would be $1.4 million, LIMRA states.
As we approach the end of 2012, you may be wondering if the Bush-era tax laws will expire come 2013. Have you done everything to ensure your estate plan will be able to survive a tumble off the tax cliff?
This change in the estate tax exemption limit scoops up a huge new group of taxpayers in its dragnet who otherwise might not have been subject to the estate tax axe. In fact, many in this new group of estate tax taxpayers have not previously found themselves at the top of the wealth pyramid. So, how is this possible? Morale of this story? The only way most of us can fall off this fiscal tax cliff is to volunteer! To view this entire blog post click here.
Join me every day as I bring you estate planning topics of interest to you and those you love.