There are many inheritance scenarios, where people hope that a simple solution will save them time and money. Unfortunately, that’s not always the way estate or tax laws work. A woman received joint ownership of her father’s house about a decade ago. Her father is still living there, and so…
Target date funds are growing in popularity, in part because they don’t require investors to do anything in the way of fund management. Are they right for you? That depends. Like any investment, there are pros and cons to using target date funds for retirement savings. The concept is easy…
Almost every type of income comes with a tax consequence. Capital gains and dividends are both income but they are treated differently when it comes to taxes. Understanding the difference between capital gains and dividend income can have an impact on portfolios and tax planning. That includes the difference in…
You may know that there are tax traps when IRA withdrawals or rollovers are done incorrectly. However, did you know that an investment portfolio could contain a tax trap that could ruin your IRA status? The most frequently occurring IRA tax trap comes from tax bills through the Unrelated Business…
You’ve heard the expression “trust fund babies.” However, trusts are not just for the wealthy. They have a number of uses in estate planning and can be helpful at any asset level. The reality of our own mortality keeps some of us up at night. For others, it’s a disturbing…
Most donations are made in December, and charities of all shapes and sizes make the most of the holiday spirit. However, by taking a bit of time to plan out charitable giving, including doing some research and talking with your family about your legacy, your giving could have a greater…
Don’t assume that the new tax law means that you don’t need an estate plan. If anything, you need to review your estate plan to make sure you’re not missing out any new opportunities. When was the last time you reviewed your estate plan? If it’s been more than a…
Many things change when you retire, including tax strategies. Steps that you took when you were working, may now work against you. Knowing what has changed and what you need to do can help avoid unnecessary tax liabilities. Tax planning is different after retirement. You might think that a lower…
First, say thank you. Then, learn more about the rules about paying taxes on a financial gift. Couples whose families are generous enough to give them help towards buying their first home are often concerned with what, if any, tax liability may be created. Do they have to pay taxes…
If you roll the money over to an IRA first, you can donate funds from your 401(k) Required Minimum Distribution tax free. Be very careful to follow the rules, so that you don’t create a tax or penalty problem. First, let’s define the RMD (Required Minimum Distributions). This is the…