In view of the precipitous decline in the stock market, there are some tax strategies for owners of traditional or Roth IRAs to consider. Converting a traditional IRA to a Roth IRA A traditional IRA can be converted to a Roth IRA if, for the conversion year, (1) the taxpayer’s modified AGI (not counting the… Read More
Remember Dabby DeVito and Billy Crystal in Throw Momma from the Train? Danny Devito is a mystery writer who has had it ” up to here” with his overbearing mom. He makes a deal with Billy Crystal. Danny will kill Billy’s ex-wife and in exchange Billy will kill Danny’s mother. When I gave seminars on… Read More
It has been a lousy year for equity mutual fund investors. According to Morningstar, the average U.S. diversified stock fund is down 33% year-to-date. Adding insult to injury, some mutual fund owners are going to have to pay hefty income tax bills on their mutual funds that lost value. Why? Because of year-end capital gain… Read More
Check out this article by Al Benelli about so-called financial advisors and “free meal” seminars: Excerpt: “For years I have been warning consumers about the dangers of attending “free-meal” financial seminars. Local, state and federal regulators across the insurance and securities industries have conducted hundreds of investigations into these “selling events.” ABC’s Nightline even did… Read More
Since I grew up in Franklin County (Mont Alto, if you must know) this news about a possible murder mystery with a trusts and estates twist caught my eye. “A hand-written 2001 codicil to Don Berkebile’s last will and testament, coupled with a note to a Public Opinion reporter two years later, indicates the elderly… Read More
Assets in qualified retirement plans such as 401 (k) plans, defined benefit pension plans, and profit sharing plans, are specifically protected from the claims of creditors by the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and a 1992 decision of the Supreme Court of the United States, Patterson v. Shumate. In… Read More
On October 16, 2008, the IRS announced annual inflation adjustments for 2009. The adjustments include an increase in the annual gift tax exclusion for present interest gifts to $13,000. The annual exclusion for present interest gifts to a non-citizen spouse will be $133,000.
Who is the heir? This is an age-old question. Simply, an heir is the person who inherits a decedent’s property if the decedent left no will. (If the decedent left a will, those who inherit are typically called beneficiaries, not heirs.) Throughout history the answer to who is an heir has changed many times. Keep… Read More
On October 3, President Bush signed into law the Emergency Economic Stabilization Act of 2008, more commonly known as the “Bailout Bill.” The financial bailout provisions have had the headlines for days as everyone tries to sort out what on earth the legislation actually does. But the bill also includes a raft of other tax… Read More
‘Tis an ill wind that blows nobody any good. Someone profits by every loss; someone is benefitted by every misfortune. The decline in the stock market, despite its cause, presents us with a tremendous estate planning opportunity. Make gifts now! The most basic reason for estate planning is to provide for those you love, and… Read More